Consideration of appeal ground 1
27 It is important to note at the outset that the appellant's ground of review is based on the principles of apprehended bias. It is not based on the separate principle of procedural fairness considered in Kioa v West (1985) 159 CLR 550 and Applicant VEAL of 2002 v Minister for Immigration and Multicultural and Indigenous Affairs (2005) 225 CLR 88 (VEAL) that a person affected by an administrative decision should be given an opportunity to deal with adverse information that is credible, relevant and significant to the decision to be made.
28 As already noted, in CNY17 the High Court considered the question of apprehended bias in a similar context to the present case. The following summary of the facts is taken from the reasons of Nettle and Gordon JJ (at [74] - [82]):
74. The appellant arrived in Australia on 13 August 2013. He was detained on Christmas Island and was unable to apply for a visa because of the bar in s 46A of the Migration Act. He broke a window on 20 March 2015 while in detention and was charged with damaging Commonwealth property ("the March 2015 incident"). He pleaded guilty, was convicted and was released without sentence, on condition of good behaviour for six months and the payment of $820.60 in reparation.
75. The Minister lifted the s 46A visa application bar for the appellant on 29 September 2015.
76. In November 2015, there were protests on Christmas Island. The appellant was charged, he said in his visa application, with "spitting at a guard & breaking a window" during the protests ("the November 2015 incident"). The appellant was transferred to a correctional facility on 12 November 2015.
77. The appellant lodged an application for a safe haven enterprise visa on 16 September 2016. He disclosed his conviction from the March 2015 incident, and the pending charges from the November 2015 incident. In relation to the March 2015 incident, the appellant's form also said "[t]here may be further updates on the cases".
78. The visa application was refused on 14 March 2017. By letter of that date, the Department advised that the decision had been referred to the IAA. The Department said it had provided the IAA with the decision record, material given by the appellant to the Department, and "any other material the Department considers to be relevant to the review". That material was not identified.
79. The appellant then received a letter from the IAA dated 23 March 2017. It stated that the Department had provided "all documents they consider relevant to your case", though these were not identified. The IAA stated that a decision would be made on that material, "unless we decide to consider new information", but this could only happen "in limited circumstances".
80. The IAA affirmed the decision on 12 May 2017, stating that it "had regard to the material referred by the Secretary under s 473CB of the Migration Act 1958". The material was not particularised.
81. The Minister identified the material provided to the IAA only when the appellant sought judicial review of the IAA's decision. The material included departmental documents with the following assertions. First, that the appellant had a "history of aggressive and/or challenging behaviour when engaging with the [D]epartment", and had been "involved in many incidents while in detention" (without identifying the history or the incidents). Second, that he had been recommended for detention in a correctional facility while there was a police investigation into a "riot". Third, that Australian Border Force had advised the Department "to not engage" with the appellant (or other detainees) while in prison. Fourth, that the appellant was "no longer of interest to Det Intel" and was the subject of unspecified "on-going investigations". There was no identification of what, exactly, "Det Intel" referred to. Fifth, that he had been considered for release from detention on a Bridging E visa "on several occasions", which the appellant characterises as an implicit representation that his behaviour resulted in him not being granted those bridging visas.
82. The appellant never had these documents. The information in the documents went beyond what was provided by the appellant and, in many cases, it was information of which the appellant was not even aware…
29 The above facts fell within the fourth category of apprehended bias identified by Deane J in Webb v The Queen (1994) 181 CLR 41 (Webb) at 74, disqualification by extraneous information (knowledge of some prejudicial but irrelevant material).
30 It is immediately apparent that a difference between the facts and circumstances in CNY17 and the present case is that, in CNY17, the Authority did not at any stage expressly refer to the departmental documents, and did not expressly disavow reliance upon the documents.
31 All members of the Court agreed that the departmental material was irrelevant to the Authority's decision. A majority of the Court, Nettle, Gordon and Edelman JJ, concluded that a hypothetical fair-minded lay observer with knowledge of the material objective facts might reasonably apprehend that the Authority might not bring an impartial mind to the decision before it as a result of the departmental information being given to it. Chief Justice Kiefel and Gageler J reached the opposite conclusion.
32 Although members of the Court disagreed on the outcome, each member of the Court was agreed on the following matters of principle:
(a) First, the bias rule of procedural fairness is not excluded or limited by any of the provisions of Part 7AA of the Act, and indeed s 473FA(1) stipulates that, in carrying out its functions, the Authority is to pursue the objective of providing a mechanism of limited review that is, amongst other things, free of bias: at [16] per Kiefel CJ and Gageler J, at [60] per Nettle and Gordon JJ and at [131] per Edelman J.
(b) Second, the applicable test for apprehended bias is whether a fair-minded lay observer might reasonably apprehend that the Authority might not bring an impartial mind to the resolution of the questions the Authority is required to decide: at [17] per Kiefel CJ and Gageler J, at [56] per Nettle and Gordon JJ and at [132] per Edelman J. In assessing that test, the Court attributes to the fair-minded observer knowledge of the relevant legal framework (here the procedures under Part 7AA) and knowledge of the relevant facts: at [17] per Kiefel CJ and Gageler J and at [58] - [59] per Nettle and Gordon JJ (this point was not expressly addressed by Edelman J).
(c) Third, it follows from the second principle that the apprehended bias rule is concerned with preserving the public appearance of independence and impartiality and the rule does not require a finding that the irrelevant material affected the decision and there was actual bias: at [18] per Kiefel CJ and Gageler J, at [70] per Nettle and Gordon JJ and at [131] per Edelman J. A corollary is that apprehended bias is not remedied by the decision-maker disregarding the irrelevant and prejudicial material. The question is directed to what a fair-minded lay observer might reasonably apprehend.
(d) Fourth, in certain circumstances, a fair-minded lay observer might reasonably apprehend that irrelevant and prejudicial material might have a subconscious (prejudicial) effect on the mind of a decision-maker notwithstanding that the decision-maker had consciously and expressly put the information aside as irrelevant: at [28] - [29] per Kiefel CJ and Gageler J, at [97] per Nettle and Gordon JJ (this point was not expressly addressed by Edelman J).
33 Nettle and Gordon JJ (at [51]) and Edelman J (at [110]) concluded that a fair-minded lay observer might have apprehended that the Authority might not have brought an impartial mind to the review, by reason of the irrelevant and prejudicial material contained in the departmental information which the Authority was mandated to consider. Their Honours considered that the departmental information might have led the Authority to make a decision otherwise than on the legal and factual merits of the case, because it might have led the Authority to the view that the applicant was not the sort of person who should be granted a visa or that the applicant was not a person who should be believed, even if that view was formed on a subconscious rather than conscious level. The risk of subconscious bias was such that it could not be cured by putting the information aside (at [97] per Nettle and Gordon JJ). Their Honours regarded as relevant the facts that: the prejudice likely to arise from the departmental information was substantial; the Authority was required by statute to consider the material provided by the Department; the Authority said in a letter to the applicant that it would make its decision on the basis of the material provided by the Department; the Authority stated in its reasons for decision that it had considered all of the material provided to it; and the Authority did not expressly state that it had put the irrelevant and prejudicial material to one side (at [94], [96], [98] and [99] per Nettle and Gordon JJ and at [110] and [111] per Edelman J).
34 Kiefel CJ and Gageler J differed from the majority and concluded that the hypothetical fair-minded lay observer would understand that the departmental information could have no legitimate bearing on the review to be conducted by the Authority (at [41]) and that such an observer would not regard the information as so shocking as to give rise to the realistic possibility that knowing it would play on the subconscious of the Authority to the detriment of the applicant (at [43]).
35 Given the facts of the case, it was unnecessary for the High Court to determine one of the questions that arises in the present appeal: whether an express disavowal of the prejudicial information by the Authority would assuage the risk that a fair-minded lay observer might have apprehended that the Authority might not have brought an impartial mind to the review. Nevertheless, members of the Court addressed that question, albeit in statements that must be regarded as obiter. Kiefel CJ and Gageler J said (at [20]) that the question whether conduct has resulted in a breach of the bias rule must be assessed by reference to all the circumstances that exist at the time when that question arises and, where the question arises after the Authority has made a decision, the reasons that the Authority has given for the decision may be relevant. Justices Nettle and Gordon observed (at [69]) that the question of apprehended bias can be, and often is, considered before the decision is made and that, in the case before them, an objection on the basis of apprehended bias could have been raised as soon as the Authority was given the departmental information. In the case before them, their Honours recognised as relevant the facts that the Authority did not expressly state that the prejudicial material had been put to one side (at [99]) and the Authority did not reveal the prejudicial information to the applicant but kept it hidden (at [100]). Justice Edelman likewise said (at [135]) that apprehended bias must be assessed by reference to all the circumstances existing at the relevant time of enquiry and, if apprehended bias is assessed at the conclusion of a hearing, then the reasons for decision might reveal matters relevant to the consideration of whether a reasonable apprehension exists. In concluding that the case gave rise to apprehended bias, his Honour placed reliance on the fact that: "Nowhere in its reasons did the Authority suggest that any of the material provided by the Secretary was not relevant or that weight had not been placed on any of the material provided by the Secretary" (at [141]).
36 Ultimately, the question of apprehended bias is a question of fact to be assessed in light of all the circumstances. In Webb, a case involving the conduct of a juror during a trial, Mason CJ and McHugh J said that a "fair minded person would give considerable weight to the judge's conclusion that the public ventilation of the incident - together with an appropriate warning - would nullify the inference otherwise to be drawn from the irregularity" (at 53). In Johnson v Johnson (2000) 201 CLR 488, a case involving statements by the trial judge that may have given the appearance of prejudgment, the plurality accepted that in some cases an apprehension of bias can be removed by a later statement which withdraws or qualifies it, but observed that some statements or behaviour "may produce an ineradicable apprehension of prejudgment" (at 494).
37 In the present case, it is necessary to form a judgment as to whether a fair-minded lay observer might reasonably apprehend that the Authority might not bring an impartial mind to its decision, by reason of the receipt of the Court Attendance Notice. Full weight must be given to the qualifications that the lay observer is fair-minded and the apprehension must be reasonable. In CNY17, Kiefel CJ and Gageler J explained (at [19]):
The purpose of combining the "fair-mindedness" of the hypothetical lay observer with the "reasonableness" of that observer's apprehension is to stress that the appearance or non-appearance of independence and impartiality on the part of the Authority falls to be determined from the perspective of a member of the public who is "neither complacent nor unduly sensitive or suspicious". Together they emphasise that "the confidence with which the [Authority] and its decisions ought to be regarded and received may be undermined, as much as may confidence in the courts of law, by a suspicion of bias reasonably - and not fancifully - entertained by responsible minds".
38 In the present case, we consider that the Court Attendance Notice contained information of a highly prejudicial kind. The information was that the NSW police alleged and brought charges against the appellant of a most serious kind, involving an alleged contravention of s 66EA of the Crimes Act 1900 (NSW). As noted earlier, the particulars of the charge were that the appellant had a sexual relationship with a minor (a girl of 13 who was a ward of the State) over a three year period from 1 August 2013 until 11 March 2016. We accept the appellant's submission that the allegation is highly prejudicial because it involves sexual offending against a vulnerable person, a young girl who is a ward of the State, over a lengthy period of time. While recognising that the information involves an allegation only and the appellant is entitled to a presumption of innocence, in our view a fair-minded lay observer might reasonably apprehend that the Authority might not bring an impartial mind to its decision by reason of being informed of the information. The observer might consider that the individual decision-maker might consciously or subconsciously form an adverse view of the appellant's character, inclining the decision-maker to the view that the appellant is not a person to whom the benefits of a visa should be extended.
39 In its reasons for decision, the Authority identified the prejudicial information, cogently explained why the information was irrelevant to the decision and stated that the Authority would disregard the information in making its decision. The question that arises is whether the apprehension of bias that arises by reason of the Authority receiving and considering the information is assuaged by those statements in the Authority's reasons.
40 In many cases, those actions by the Authority would be expected to assure a fair-minded lay observer that the Authority has brought an impartial mind to its decision. An illustration is O'Sullivan v Medical Tribunal of New South Wales [2009] NSWCA 374 in which the presiding judicial member rejected a proposed tender of an irrelevant and prejudicial document and stated that the Tribunal could properly put the document out of its mind and not bring it to bear in any way in determining the matter.
41 As recognised in CNY17, though, information may be of such a prejudicial kind that a fair-minded lay observer might reasonably consider that it would be difficult for the decision-maker to put the information out of his or her mind, notwithstanding that the decision-maker consciously and expressly endeavoured to disregard the information: see also AMA16 at [76] - [77] per Griffiths J and at [100] per Charlesworth J. It must be emphasised that the enquiry is not directed to the question of actual bias - whether the Court considers that the prejudicial information is of a kind that would be likely to have a subconscious effect on the decision-maker, such that the decision-maker would be unable to put the information out of his or her mind. The enquiry is directed to the question of apprehended bias - what a fair-minded lay observer would reasonably apprehend. The possibility of subconscious effect is only relevant in that latter sense. It should also be reiterated that the principle being considered in this case, apprehended bias, is not the same as the principle considered in VEAL. As the High Court stated in VEAL, the question whether a person affected by a decision has been afforded an opportunity to address adverse information is a question of the fairness of the procedures that have been followed, and does not depend on any assessment of whether the decision-maker may have been subconsciously affected by the adverse information (at [19]).
42 In the present case, we consider that the information is of such a prejudicial kind that a fair-minded lay observer might reasonably consider that it would be difficult for the decision-maker to put the information out of his or her mind in determining whether to grant a visa. In other words, a fair-minded lay observer might reasonably consider that the information is of a kind that might subconsciously affect the Authority's approach to the decision, notwithstanding that the Authority consciously endeavoured to disregard the information.
43 This is not to impose a standard of undue sensitivity on the fair-minded lay observer. It is only to recognise that the rule is "directed to the necessity for executive power to be exercised fairly and to appear to be exercised fairly, in support of the maintenance of confidence in the administrative process": SZRUI v Minister for Immigration, Multicultural Affairs and Citizenship [2013] FCAFC 80 at [2] per Allsop CJ. In CNY17, Kiefel CJ and Gageler J (at [27]) endorsed the wisdom of the following observations of Frankfurter J of the US Supreme Court in Public Utilities Commission of the District of Columbia v Pollak (1952) 343 US 451 at 466-467:
…But it is also true that reason cannot control the subconscious influence of feelings of which it is unaware. When there is ground for believing that such unconscious feelings may operate in the ultimate judgment, or may not unfairly lead others to believe they are operating, judges recuse themselves. They do not sit in judgment. They do this for a variety of reasons. The guiding consideration is that the administration of justice should reasonably appear to be disinterested as well as be so in fact.
44 In the context of a review under Part 7AA of the Act, if highly prejudicial but irrelevant information is given to the Authority, procedural fairness may demand more than the Authority merely disavowing reliance on the information. If the information is sufficiently prejudicial, and the person affected by the decision is not informed of the information or given an opportunity to respond to it, procedural fairness may require the individual decision-maker exposed to the information to recuse themselves. That will not be required in every case. But in our view, it was required in this case.
45 We therefore uphold ground 1 of the appeal.