5.3.2 Grounds 1 and 2 must be dismissed
99 There are three essential propositions underpinning the applicant's submissions on Grounds 1 and 2:
(1) As a matter of statutory construction:
(a) once the Minister or a delegate is satisfied that all of the criteria for the grant of a visa are met, she or he is under an immediate duty to grant the visa; and
(b) once the duty to grant the visa has arisen, any subsequent exercise of the power to refuse the visa under s 501 is invalid; and
(2) the evidence established that the duty to grant Mr EPU's visa arose in this case at some time in the past.
100 The first two propositions (subparas (1)(a) and (b) above) cannot be sustained in light of the decision of Edelman J in KDSP (HCA) delivered on 4 August 2021. While the Minister accepted that the reasoning in KDSP (HCA) is not binding upon this Court as it was a decision of a single judge of the High Court, the Minister submitted that it is nonetheless of great persuasive authority (see eg Bone v Commissioner of Stamp Duties [1972] 2 NSWLR 651 at 654 (Jacobs P), 664 (Hope JA) (Reynolds JA agreeing with both Jacobs P and Hope JA); Kalifair Pty Ltd v Digi-Tech (Australia) Ltd (2002) 55 NSWLR 737 at [15]-[16] (the Court)). The applicant submitted that the test posed by these authorities "overstated" the position, submitting instead that the principle was only that there should not be a lower court departure from "long-established authority and seriously considered dicta of a majority of [the High] Court" (referring to Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 (Farah) at [134] (the Court); emphasis in the original). However, the High Court in Farah was not endorsing the converse proposition, namely, that there could be lower court departure where the two limbs of the "test" in Farah (as it was described by the applicant) were not met: cf the applicant's reply filed 1 September 2021 at [2]. It follows that the Minister's submission as to the appropriate test should be accepted as correct.
101 The applicant then sought to distinguish KDSP (HCA) even though, in the alternative, the applicant made the formal submission that KDSP (HCA) was wrongly decided (applicant's reply dated 1 September 2021 at [3]).
102 By way of background, in KDSP (HCA) the Tribunal had set aside a decision under s 501 by a delegate to refuse the applicant's application for a Safe Haven Enterprise visa (SHEV). However, the Minister then made a personal decision under s 501A(2)(a) substituting a decision to refuse to grant the SHEV. The applicant had argued unsuccessfully in the Federal Court that (among other things) the Minister had failed to make a decision on his visa application within a reasonable time as a consequence of which the Minister no longer had the power to refuse a visa under s 501A(2): KDSP (FCAFC). The applicant sought special leave to appeal from that decision and also instituted parallel proceedings arguably out of time in the original jurisdiction of the High Court in which he sought to raise additional and new grounds. The application for special leave to appeal was dismissed by Gordon and Edelman JJ on 11 February 2021: [2021] HCATrans 20. Subsequently in KDSP (HCA), Edelman J dismissed the application for an extension of time within which to institute the original jurisdiction proceeding and the substantive application to the extent that an extension of time was not required. In the absence of submissions on abuse of process, his Honour rejected the applications on the grounds that they lacked any merit (at [39]). It follows that the reasons for holding that the grounds lacked any merit which I set out below comprise part of the ratio of the decision in KDSP (HCA) and are not, as the applicant here submitted, obiter dicta. In any event, even if they were obiter, I consider that his Honour was plainly correct in his understanding of the interaction between ss 65, 501 and 501A(2)(a) and cl 790.226(a) and PIC 4001.
103 Relevantly, Edelman J held first that the factual premise that all of the criteria for the grant of a SHEV had been satisfied was not established by the evidence. Rather, his Honour found that while the evidence suggested that the first delegate "had reached, at least, a preliminary or indicative view" that Australia owed protection obligations to Mr KDSP, it did not establish that at any time the first delegate was satisfied that all of the requirements for the grant of a SHEV were met (at [43]). To the contrary, his Honour inferred from the referral of the visa application to VACCU that the first delegate "had, at the least, doubts about whether PIC 4001, and the character criteria, had been met" (at [43]). As I explain below, in this proceeding the applicant has also failed to establish this factual premise of his case.
104 Secondly, Edelman J dismissed the challenge that PIC 4001 was void for uncertainty as "it is plain beyond argument that "the character test" to which PIC 4001 refers is not some new, undefined character test. Rather, it is the character test set out in s 501(6)" (emphasis in the original). This aspect of KDSP (HCA) is not challenged by Mr EPU.
105 Thirdly, with respect to the alternative basis on which the validity of PIC 4001 was challenged, Edelman J held that:
47. The second basis for KDSP's challenge to the validity of PIC 4001 insofar as it is applied by cl 790.226(a) was to suggest that the clause had transformed the discretionary nature of the Minister's power to make a decision under the various parts of s 501 into a mandatory duty to make such a decision. In other words, the mandatory nature of cl 790.226(a) in its application of PIC 4001 had purported to contradict the discretionary nature of s 501, creating an inconsistency between the Migration Act and the Migration Regulations. But there is no such mandatory requirement in PIC 4001 and no such contradiction. Although cl 790.226(a) makes the satisfaction of PIC 4001 mandatory for the grant of the SHEV, it does not require the Minister to exercise the power under s 501. For instance, the Minister might not exercise any power under s 501 but PIC 4001 could be satisfied by para (b) if a delegate of the Minister is "satisfied, after appropriate inquiries, that there is nothing to indicate that the person would fail to satisfy the Minister that the person passes the character test".
106 Counsel for Mr EPU submitted that the decision of Edelman in this respect could be distinguished on the basis that paragraph [47] of KDSP:
… does not address the invalidity argument put in this case, which is that cl 866.225(a) invalidly pu[r]ports to make it a criterion for the grant of a protection visa that there be: first, consideration (in every case) given to exercising the discretion in s 501; and second, that the consideration result in non-exercise. In contrast, Edelman J only concluded that the corresponding cl 790.226(a) 'does not require the Minister to exercise the power under s 501'.
(AS (30 Aug 2021) at [5]; emphasis added.)
107 As such, it appears that Mr EPU's contention is that PIC 4001 is inconsistent with the Act and invalid because it elevates consideration under s 501, which the Act provides is a discretionary matter, into a mandatory requirement (see also AS (16 April 2021) at [31]). However, as the Minister submits, no such requirement is imposed by PIC 4001. To the contrary, paragraph (b) of PIC 4001 is satisfied if the Minister is satisfied, after appropriate enquiries, that there is nothing to indicate that the person would fail to satisfy the Minister that the person passes the character test. While this does require the Minister or her or his delegate to turn their minds to whether the exercise of the power in s 501 should be considered, it does not follow that PIC 4001 is inconsistent with the Act. Rather, as the Minister submits, "[g]iven that the Act confers the power in s 501, it cannot be inconsistent with the Act for a visa criterion to be prescribed which requires the Min[i]ster or delegates to turn their minds to whether exercise of that very power should be considered in a particular case" (RS (31 Aug 2021) at [13]).
108 Fourthly, Edelman J rejected the further ground challenging the lawfulness of the process and policy by which a delegate with authority to perform the duty under s 65 would refer the application to VACCU for consideration of whether the Minister's power under s 501 should be exercised. Rather, his Honour held that:
50. … There is nothing in the Migration Act which prevents an officer with delegated power to make a decision under s 65 from forming indicative or preliminary views prior to making the decision. Nor is there anything which prevents the officer from referring the application for a decision under s 501. Such a referral does not involve a piecemeal approach to a s 65 decision. There is only ever one decision made under s 65.
…
53. The problem with KDSP's submission is that it seeks to segment a single decision into various discrete decisions. A delegate of the Minister who is considering the grant of a visa under s 65 makes only one decision - a binary decision to grant (s 65 (1) (a)) or to refuse to grant (s 65(1)(b)) a visa upon consideration of a valid application - not a series of stepped decisions. …
54. There is, therefore, no reason why the single decision made under s 65 could not be deferred pending consideration by the Minister, or another delegate, of whether or not to exercise the power under s 501. The power under s 65 must still be made within a reasonable time but what amounts to a reasonable time is determined "having regard to the circumstances of the particular case within the context of the decision-making framework established by the Act". That decision-making framework includes a reasonable opportunity, where relevant, for the Minister or delegate (where permitted) to consider, and exercise, any powers under s 501. Indeed, the condition in s 65(1)(a)(iii) that the "grant of the visa is not prevented by section … 501 (special power to refuse or cancel) or any other provision of this Act" contemplates that the Minister will at least have an opportunity to exercise that power. It is both lawful and desirable for the Department to develop policies and processes to facilitate the exercise of powers such as those under s 501 consistently with a decision under s 65.
55. The departmental policy permissibly allowed the delegate who performs the duty imposed by s 65(1) to form views on whether the visa applicant satisfies criteria other than those going to character and security and to await a separate decision under s 501. The views formed by a delegate holding a delegation to make a decision under s 65, however firmly held and whether or not recorded, could only ever be preliminary or indicative views, since the relevant time for making a decision is the time at which the delegate considers all criteria together. …
(Emphasis added.)
109 As such, his Honour held that PIC 4001 and cl 790.226(a) were not void for uncertainty or ultra vires the regulation-making power in s 504 of the Act (at [57]).
110 Fifthly, for the same reasons, Edelman J rejected Ground 4 of the proposed judicial review application that the Minister had no power to make the decision under s 501(1) on 21 July 2017 (when he purported to do so) as by that time Mr KDSP had met all of the criteria for the grant of the SHEV (at [58]).
111 Finally, his Honour held, in rejecting Ground 5 and holding that the Minister had jurisdiction to make a decision under s 501A(2) even if the decision of the Tribunal was invalid:
69. Sections 501(1) and 501A(2) of the Migration Act operate irrespective of whether a person meets all requirements for the grant of a visa under s 65, since the power to grant a visa under s 65 requires, by s 65(1)(a)(iii), that the grant of the Visa "is not prevented by section … 501 (special power to refuse or cancel) or any other provision of this Act". The very purpose of ss 501(1) and 501A(2) is to permit the refusal of the visa even if the s 65 requirements for the grant of a visa are otherwise met. The Minister's powers under ss 501(1) and 501A(2) are therefore not spent even if the visa should have otherwise been granted under s 65, but has not been granted.
70. The Minister's duty to consider a valid visa application under s 47, and the Minister's ability to exercise the powers under ss 501(1) and 501A(2), do not come to an end pursuant to s 47(2)(b) merely because a visa should have been granted under s 65. As Bromberg J held in the Full Court of the Federal Court in the proceedings in which this fifth ground could have been agitated, the Minister's power under s 501A(2) "is a step in the performance of the duty imposed by s 65". Similarly, O'Callaghan and Steward JJ said that s 501(1) and visa criteria such as the criterion prescribed in s 36(1C) are "cumulative requirements".
112 It follows that the decision of Edelman J in KDSP (HCA) is fatal to the applicant's contentions here. In common with Mr KDSP's submissions, Mr EPU also seeks to segment a single decision into various discrete decisions. Contrary to the applicant's submission, however, the power in s 501(1) is not "completely independent of" the power to grant or refuse the grant of a visa under s 65(1)(b) of the Act. Nor, contrary to the applicant's submissions, is there any reason why the making of the decision under s 65 cannot be deferred pending consideration by the Minister of the question whether or not to exercise the power under s 501. Rather, applying the decision in KDSP (HCA), there is only one decision made under s 65, and s 65 itself contemplates that, where relevant, the Minister or delegate will have a reasonable opportunity to consider, and exercise, the powers under s 501. Furthermore, "the very purpose of sections 501(1) and 501A(2) is to permit the refusal of a visa even if the s 65 requirements for the grant of a visa are otherwise met" (KDSP (HCA) at [69] (Edelman J)). The fact, therefore, that the s 65 criteria were otherwise met did not constitute an impediment to the exercise of the power under s 501 or to consideration of the exercise of that power. As such, as the Minister submitted, "[n]ow that a decision has been made by the Minister under s 501(1), it is simply immaterial whether or not a visa ought to have been granted at some earlier time" (RS (31 Aug 2021)) at [18]).
113 Finally and in any event, the factual premise of the applicant's argument - that a state of satisfaction had been reached that all of the valid criteria in s 65 had been met - was not established by the evidence.
114 The applicant submitted in the Parties' Comparative Table of Proposed Findings that an officer of the Department, Ms Shimla Kissoon, actually formed the state of satisfaction in s 65(1)(a) with respect to those criteria which are valid. It was agreed that Ms Kissoon held the classification of APS 4 on 1 April 2021 (T, 2/09/21, 10.4-24). Contrary to the applicant's submission, however, the evidence of Mr Muir did not establish that Ms Kissoon was "the" s 65 delegate charged with considering whether Mr EPU passed the character test (as described in the departmental policy referred to at [118] below). Mr Muir's evidence was only that Ms Kissoon was a processing officer "at particular points in time" (T, 2/09/21, 33.23-24). Nor, while accepting that it was possible, could Mr Muir say whether the processing officer was the same as the s 65 delegate in all cases or in Mr EPU's particular case (T, 2/09/21, 32.31-33.10). Mr Muir also gave evidence that, while Ms Kissoon made the referral of Mr EPU's visa application to VACCU on 8 April 2021 at least in the (clerical) sense of uploading the document onto the system, another officer may have been involved in the decision leading to the referral (T, 2/09/21, 20.45-27.47 and T, 2/09/21, 28.22-24).
115 In this regard, I also accept Mr Muir's evidence that the words checked in the s 501 case referral pro-forma to VACCU that the "Applicant is Schedule 2 criteria met" "are taken to mean that the applicant has been assessed as having indicatively met all [S]chedule 2 criteria, which then paves the way for a - a character consideration" (T, 2/09/21, 24.24-26; emphasis added). As Mr Muir then explained (at T, 2/09/21, 24.26-30):
Pending the outcome of that character consideration - for instance, if it was a non-adverse outcome - the case would be returned to the referring area where the expectation would be that they would need to - to revisit all time of decision criteria to see that they are met at that point of time and that a section 65 delegate is satisfied of that.
116 As Mr Muir elaborated, the criteria for the grant of a visa "are at time of decision, so I don't see how you could have evidence [from which it could be supposed that those criteria could become unmet] ahead of that time, necessarily" and "one of the key things which might result [over the effluxion of time] in that is new information" might become available which cannot be predicted (T, 2/09/21, 30.4-5 and 30.37-41).
117 The applicant's submission to the contrary seeks to set up a staged decision-making process. This is inconsistent with the Act which envisages one decision being made under s 65 at which point in time the decision-maker must personally reach a state of satisfaction as to whether or not all of the criteria are met. (In so saying, I leave aside the question of whether the finding by the Tribunal that protection obligations are owed to Mr EPU could be revisited by the Minister, which does not arise in the present case).
118 The applicant also submitted that evidence produced by the Minister revealed that the s 501 delegate, whom the applicant submitted must also have had a s 65 delegation, was positively persuaded not to refuse Mr EPU's application on character grounds, referring to the VAPA dated 29 April 2021 (A-STB at p. 740). As such, the applicant submitted that the s 501 delegate must also have known that all other criteria were satisfied because a referral to VACCU only occurs where that is the case, referring to the departmental policy set out in Section 501: The character test, visa refusal and visa cancellation, document ID VM-1001 (re-issued 15 April 2021) (reproduced in the first Muir affidavit at p. 273 of Annexure NLM-15) (the Section 501 Departmental Policy) (AS (30 Aug 2021) at [4]).
119 It can reasonably be inferred that the s 501 delegate was familiar with the Section 501 Departmental Policy, including the advice set out therein that a referral for consideration of a visa application under s 501 should be made only if the visa applicant satisfies all other criteria for the grant of the visa. It can also be inferred that the s 501 delegate was therefore well aware that others were likely to have formed an indicative view that all other criteria for the visa were met at the time of the referral. This accords with Mr Muir's evidence that "my clear understanding is that we require all criteria to be indicatively met before it is referred for a character assessment" (T, 2/09/21, 29.37-38; emphasis added). That does not, however, mean that the s 501 delegate was personally satisfied that Mr EPU had met all of the other criteria necessary for the grant of the visa under s 65 of the Act, as the Minister correctly submits (RS (31 Aug 2021) at [21]).
120 Furthermore, as I have earlier found, the VAPA, with respect, falls well short of establishing that a "decision" had been made at that time not to refuse the visa under s 501. First, the delegate's "views" were sought for the purposes of a "Client Brief", ie, the delegate was not being asked to decide whether the visa application should be refused under s 501 but for her views to assist in the preparation of a "Client Brief" for the Minister, as in fact was prepared. Secondly and consistently with this, the delegate who signed off on the assessment found only that "[o]n the basis of the evidence currently before me I am minded to … Not Refuse" (emphasis added). This is not the language of a person reaching a concluded view on the exercise of the power under s 501(1), as the Minister submitted (RS (31 Aug 2021) at [20]). Rather, the language indicates that the delegate was expressing a view only on whether the visa should be refused under s 501, and only on the basis of the material "currently" before her. This accords with Mr Muir's evidence regarding the purpose of a VAPA "for views" which I have earlier discussed at [27] above and which I accept. In line with this, Mr Muir further explained that:
Assessments are preliminary or indicative because many of the criteria for the grant of visas are "time of decision" criteria, and so it is possible for some such criteria that, by the time the decision-maker comes to make a decision, a criterion which was previously satisfied on a preliminary or indicative basis is no longer satisfied (e.g. because of some intervening circumstance or further information). Preliminary or indicative assessments are often made by different officers, who may or may not hold a delegation to make decisions under s 65.
121 Moreover, as Edelman J held in KDSP (HCA) at [50], nothing in the Act prevents an officer to whom the power to make a decision under s 65 has been delegated from forming such indicative or preliminary views before a decision is made by that officer (or another person with the requisite authority). Nor did the applicant contend that any administrative practice of designating assessments of individual criteria as merely indicative was unlawful (T, 3/09/21, 130.18-22 and 130.34-37 (Mr Guo)). Similarly, in Springs v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2021] FCA 197; (2021) 389 ALR 431, Perram J explained that:
37. … the process of reasoning on the facts of the case occurs at the moment the Tribunal makes its decision. It is only at that moment that a decision is made and talk of reasons can make any sense. Speaking extra-curially of the will-o-wisp nature of draft judgments, the late great Hely J of this Court once drily observed 'You can always add a "not"'. If that be true - and it certainly is - the only reasoning process which eventually takes place is the one manifest in the statement of reasons. Everything else is writ in water.
122 It follows that the existence of an indicative assessment of criteria, such as that given by the s 501 delegate in the VAPA, does not provide a basis on which to hold that the delegate was satisfied at that time that the criteria for the grant of a visa under s 65(1) of the Act were met. As the Minister submitted:
… The visa criteria have to be met at the time of decision and to come together in the mind of the Minister or an individual delegate for the purpose of s 65(1)(a). In circumstances where the [a]pplicant's case raises character concerns, that cannot occur unless and until the application has been considered by the VACCU and returned to the visa processing area. …
(RS (21 July 2021) at [40].)
123 Grounds 1 and 2 are therefore dismissed.