Disposition of the application
16 It is desirable to set out the relevant parts of ss 37 and 44 of the AAT Act:
37 Tribunal may require other documents to be lodged
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Decision-maker must lodge material documents
(1) Subject to this section, a person who has made a decision that is the subject of an application for review (other than second review) by the Tribunal must, within 28 days after receiving notice of the application (or within such further period as the Tribunal allows), lodge with the Tribunal a copy of:
(a) a statement setting out the findings on material questions of fact, referring to the evidence or other material on which those findings were based and giving the reasons for the decision; and
(b) subject to any directions given under section 18B, every other document that is in the person's possession or under the person's control and is relevant to the review of the decision by the Tribunal.
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Tribunal must require other documents to be lodged
(2) Where the Tribunal is of the opinion that particular other documents or that other documents included in a particular class of documents may be relevant to the review of the decision by the Tribunal, the Tribunal may cause to be given to the person a notice in writing stating that the Tribunal is of that opinion and requiring the person to lodge with the Tribunal, within a time specified in the notice, the specified number of copies of each of those other documents that is in his or her possession or under his or her control, and a person to whom such a notice is given shall comply with the notice.
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44 Appeals to Federal Court of Australia from decisions of the Tribunal
Appeal on question of law
(1) A party to a proceeding before the Tribunal may appeal to the Federal Court of Australia, on a question of law, from any decision of the Tribunal in that proceeding.
Note 1 This Part does not apply to certain migration proceedings (see section 43C).
Note 2: A party to a child support first review may in some instances appeal instead to the Federal Circuit Court (see section 44AAA).
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When and how appeal instituted
(2A) An appeal by a person under subsection (1) or (2) shall be instituted:
(a) not later than the twenty-eighth day after the day on which a document setting out the terms of the decision of the Tribunal is given to the person or within such further time as the Federal Court of Australia (whether before or after the expiration of that day) allows; and
(b) in such manner as is prescribed by rules of court made under the Federal Court of Australia Act 1976.
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17 Section 37 of the AAT Act has been modified by s 14ZZF(1) of the Taxation Administration Act 1953 (Cth) (TA Act):
Modification of section 37 of the AAT Act
(1) Section 37 of the AAT Act applies in relation to an application for review of a reviewable objection decision as if:
(a) the requirement in subsection (1) of that section to lodge with the Tribunal a copy of:
(i) a statement giving the reasons for the decision; and
(ii) the notice of the taxation decision concerned; and
(iii) the taxation objection concerned; and
(iv) the notice of the objection decision; and
(v) every other document that is in the Commissioner's possession or under the Commissioner's control and is considered by the Commissioner to be necessary to the review of the objection decision concerned; and
(vi) a list of the documents (if any) being lodged under subparagraph (v); and
(b) the power of the Tribunal under subsection (2) of that section to cause a notice to be served containing a statement and imposing a requirement on a person were instead:
(i) a power to make such a statement and impose such a requirement orally at a conference held in accordance with subsection 34(1) of the AAT Act; and
(ii) a power, by such a notice, to make such a statement and impose a requirement that the person lodge with the Tribunal, within the time specified in the notice, a copy of each of those other documents that is in the person's possession or under the person's control; and
(iii) a power, by such a notice, to make such a statement and impose a requirement that the person lodge with the Tribunal, within the time specified in the notice, a copy of a list of the documents in the person's possession or under the person's control considered by the person to be relevant to the review of the objection decision concerned.
18 The terms of s 87.18(1) to (4) of the ITA Act should also be noted:
The results test for a personal services business
(1) An individual meets the results test in an income year if, in relation to at least 75% of the individual's *personal services income (not including income referred to in subsection (2)) during the income year:
(a) the income is for producing a result; and
(b) the individual is required to supply the *plant and equipment, or tools of trade, needed to perform the work from which the individual produces the result; and
(c) the individual is, or would be, liable for the cost of rectifying any defect in the work performed.
(2) Paragraph (1)(a) does not apply to income:
(a) that the individual receives as an employee; or
(b) that the individual receives as an individual referred to in paragraph 12-45(1)(a), (b), (c), (d) or (e) (payments to office holders) in Schedule 1 to the Taxation Administration Act 1953 ; or
(c) to the extent that it is a payment referred to in section 12-47 (payments to *religious practitioners) in that Schedule.
(3) A *personal services entity meets the results test in an income year if, in relation to at least 75% of the *personal services income of one or more individuals that is included in the personal services entity's *ordinary income or *statutory income during the income year:
(a) the income is for producing a result; and
(b) the personal services entity is required to supply the *plant and equipment, or tools of trade, needed to perform the work from which the personal services entity produces the result; and
(c) the personal services entity is, or would be, liable for the cost of rectifying any defect in the work performed.
(4) For the purposes of paragraph (1)(a), (b) or (c) or (3)(a), (b) or (c), regard is to be had to whether it is the custom or practice, when work of the kind in question is performed by an entity other than an employee:
(a) for the *personal services income from the work to be for producing a result; and
(b) for the entity to be required to supply the *plant and equipment, or tools of trade, needed to perform the work; and
(c) for the entity to be liable for the cost of rectifying any defect in the work performed;
as the case requires.
19 The applicant's proposed appeal, for which he requires an extension of time, is plainly misconceived having regard to the now well settled view that the word "decision" in s 44 of the AAT Act refers to decisions which constitute the effective decision or determination of an application for review in the AAT. This view has been repeatedly applied in the Court, including in other Full Court decisions, such as Kowalski v Repatriation Commission [2009] FCAFC 107; 259 ALR 444 at [18]-[23] per Spender, Graham and Gilmour JJ and Director-General of Social Services v Hales [1983] FCA 81; 47 ALR 281 at 305 per Lockhart J and at 325 per Sheppard J). This view was also adopted and applied by Perram J in Yao in which his Honour highlighted the differences between an appeal under s 44 and judicial review proceedings under either s 39B of the Judiciary Act 1903 (Cth) or the Administrative Decisions (Judicial Review) Act 1977 (Cth). (See also Mahaffy v Administrative Appeals Tribunal [2015] FCA 251).
20 There are evidently four exceptions to the general principle established in cases such as Chaney. First, an appeal lies under s 44(2) from a decision holding that the interests of a person are not affected by a particular decision. Secondly, where the proceedings before the AAT can be divided in two or more separate parts involving the giving of independent decisions (see Chaney at 103). Thirdly, s 36D of the AAT Act makes specific provision for specified interim decisions to be a decision for the purposes of s 44, including decisions under ss 36(3), 36B(3), 36A(2)(b) and 36C(2)(b). Fourthly, Ryan J found in APRA v VBN [2005] FCA 1868 at [39] that a decision of the AAT which required the primary decision-maker to lodge documents under s 37(2) of the AAT Act was "final or operative and determinative in a practical sense" where the order "impinges on the decision-maker's right to preserve undisclosed documents to which legal professional privilege attaches". This is because such a requirement has a final impact on legal professional privilege, which the High Court identified in Daniels Corporation International Pty Ltd v Australian Competition and Consumer Commission [2002] HCA 49; 213 CLR 543 at [11] as a substantive common law right or immunity. This exception has no relevance here, in circumstances where the AAT has declined to make the order sought by the applicant and, in any event, there is no suggestion that legal professional privilege is involved.
21 The Tribunal's decision to refuse to exercise its powers under s 37(2) (as modified by s 14ZZF) is not a "decision" for the purposes of s 44 of the AAT Act. Rather, it is an intermediate decision which has been made by the Tribunal in the course of the broader review proceeding relating to the Commissioner's decision concerning the applicant's objection to certain amended assessments and penalties.
22 As noted above, both parties made submissions in respect of the Full Court's decision in Kennedy. The applicant submitted that the AAT erred in relying upon Kennedy and that the case was distinguishable. It is unnecessary to resolve this dispute because, irrespective of whether the substantive part of Kennedy is distinguishable, the applicant's proposed appeal is incompetent.
23 There is, however, one curious aspect of Kennedy. It relates to the question whether the proceedings in the Full Court there involved an appeal or were in the nature of an application for judicial review. The Full Court's reasons for judgment refer several times to the proceeding being an "appeal". The primary decision was a decision of a Deputy President of the AAT. Accordingly, unless the Full Court was using the word "appeal" in a very general sense as meaning a challenge, the references to an "appeal" could only be references to s 44 of the AAT Act. The Commissioner has provided a copy of the originating application which led to the Full Court's decision in Kennedy. The originating application is expressly stated to be one made pursuant to s 39B of the Judiciary Act 1903, which is reaffirmed by the nature of the relief sought by the applicant in that proceeding, which included declaratory orders. Accordingly, the references in the reasons for judgment to an "appeal" appear either to involve a broad meaning of that term or are in error and do not reflect the true nature of the proceeding.
24 These matters are reinforced by the contents of the statement of claim and defence which were filed in Kennedy. There is an express reference in [4] of the statement of claim to the application being one made under s 39B of the Judiciary Act. In [19], it is pleaded that the AAT made several errors of law. The statement of claim includes a statement that the applicant claimed the relief specified in the application which, as noted above, included declaratory relief.
25 In his formal defence in Kennedy, the Commissioner admitted the allegation made in [4] of the statement of claim, i.e. that the application was one made in reliance upon s 39B of the Judiciary Act. Nor does the Full Court refer to s 44 of the AAT Act.
26 The pleadings provide no support for the applicant's contention that Kennedy involved an appeal under s 44 of the AAT Act. There is no reference in the originating application, the statement of claim or the defence in Kennedy to the proceeding being one under s 44 of the AAT Act.
27 Having regard to all these matters, I do not view Kennedy as authority for the proposition that a decision under s 37(2) of the AAT Act is capable of being challenged in a s 44 appeal in advance of the AAT making an ultimate or final decision in the substantive proceeding.