Question 4 - whether the Tribunal erred in failing to exercise the discretion in regulation 11
70 The applicant framed question 4 as a failure by the Tribunal to act reasonably, in the legal sense, in coming to its view that the discretion in reg 11 should not be exercised in the applicant's favour.
71 The standard of reasonableness to be applied to the exercise of a discretionary power conferred by a legislative instrument is the standard indicated by the true construction of that legislative instrument: Minister for Immigration and Citizenship v Li [2013] HCA 18; 249 CLR 382 at [67] (Hayne, Kiefel and Bell JJ). Therefore, the question whether the Tribunal's refusal to exercise the discretion under reg 11(1) was legally unreasonable must be understood in light of the true construction of that provision, in its context within the broader regulatory scheme. The question to which the standard of reasonableness is addressed is whether the legislative power has been abused: Minister for Immigration and Citizenship v Li [2013] HCA 18; 249 CLR 382 at [67] (Hayne, Kiefel and Bell JJ).
72 The applicant did not submit that the outcome, being the non-exercise of the discretionary power, itself necessitated a finding of legal unreasonableness. The Tribunal's conclusion that the applicant's application did not warrant the exercise of the discretion was not inherently unreasonable. Rather, the applicant submitted that the Tribunal acted unreasonably in coming to its view that the discretion should not be exercised. That is, the applicant submitted that the Tribunal acted legally unreasonably by committing other recognised kinds of legal error in its reasoning process, and not simply because of the outcome of that process: see, Minister for Immigration and Border Protection v Singh [2014] FCAFC 1; 231 FCR 437 at [44] (Allsop CJ, Robertson and Mortimer JJ); Minister for Immigration and Border Protection v Stretton [2016] FCAFC 11; 237 FCR 1 at [6] (Allsop CJ). The applicant pointed to five aspects of the Tribunal's reasons to support his submission that the Tribunal acted legally unreasonably in deciding to refuse to exercise the discretion. In doing so, the applicant alleged more specific recognised kinds of legal error, or grounds of judicial review, that may be seen as encompassed by unreasonableness: Minister for Immigration and Citizenship v Li [2013] HCA 18; 249 CLR 382 at [72] (Hayne, Kiefel and Bell JJ). I have considered each of those identified aspects of the Tribunal's reasons in turn, below.
73 First, I do not consider that the Tribunal erred in having regard to certain factors, which had been developed in earlier decisions of the Tribunal, to inform its consideration of whether or not to exercise the discretion. The Tribunal considered whether or not to exercise the discretion at [28]-[40] of its reasons. In doing so, the Tribunal did not misunderstand its statutory task or unlawfully fetter the discretion in reg 11. Before considering the facts of the applicant's application, the Tribunal made general comments about the nature of the discretion -
28. Regulation 11 contains a broad discretion to allow the importation of a nonstandard vehicle or a vehicle without an identification plate. The Act and the Regulations do not set out the specific facts to be taken into account for the exercise of this discretion. Accordingly, they must be determined by the subject matter, scope and purpose of the Act: Minister for Aboriginal Affairs v Peko Wallsend Ltd (1986) 162 CLR 24 at 39 - 40.
29. In Compos and Minister for Infrastructure and Transport [2012] AATA 227, Toohey SM held at [29]:
[T]here needs to be good reason for the discretion in reg 11 to be exercised.
30. In Selway v Minister for Infrastructure, Transport, Regional Development and Local Government [2011] FCA 43, Mansfield J held at [37] - [38]:
It may well be that it will not be a common circumstance that a person seeking to import a non-standard vehicle will have the discretion available under Reg 11 exercised in that person's favour. In some circumstances, such an importation might undermine or frustrate the policy and objectives of the Act. Clearly, in such a circumstance, the favourable exercise of the discretion under Reg 11 would require there to be weighty countervailing factors. The fulfilment of that policy or those objectives is clearly relevant to the exercise of the discretion under Reg 11…However, beyond that consideration, the discretion under Reg 11 is, in its terms, unfettered…
31. Factors such as the policy objectives of the Act; unfairness or injustice to the Applicant; financial hardship to the Applicant; the unique nature of the vehicle in question; whether there were any unpredictable or unexpected events, are relevant to consider in exercising the discretion.
(emphases added)
74 As emphasised above, the Tribunal accurately summarised the breadth of the discretion, which did not have any expressly prescribed limits, and the limited relevance of having regard to certain factors developed in earlier decisions of the Tribunal. The Tribunal stated that factors "such as" those listed were "relevant to consider". The Tribunal did not state that the applicant was required to satisfy any of those listed factors, or that they constituted an exhaustive list of the relevant factors that could inform its consideration of whether or not to exercise the discretion. The respondent submitted that the Tribunal treated those factors as a useful checklist that provided a framework to inform its consideration of whether or not to exercise an unconstrained discretion. I accept that characterisation.
75 The Tribunal went on at [33]-[40] of its reasons, extracted at [18] above, to consider the facts of the applicant's application and decide not to exercise the discretion in his favour. The Tribunal considered each of the factors that it derived from earlier decisions of the Tribunal. In doing so, I do not consider that the Tribunal impermissibly fettered the discretion or limited itself, or failed to have regard to the particulars of the applicant's application. As submitted by the respondent, the first two factors considered by the Tribunal - the policy objectives of the Act and unfairness to the applicant - necessarily inform the proper exercise of the statutory discretion. The discretion must be guided by the policy objectives of the Act, and consideration of any unfairness to the applicant requires the Tribunal to consider the particular facts of the applicant's application and the consequences of the exercise of the discretion. The remaining factors derived from earlier decisions of the Tribunal - financial hardship to the applicant; whether the motor vehicle was unique; and whether there were any unforeseen circumstances - were also relevant to the exercise of the discretion, in light of the purpose of the regulatory scheme and the facts of the applicant's application. To the extent that the Tribunal's regard to earlier decisions caused it to dismiss potential arguments that were not in fact put by the applicant, such as at [36] of its reasons where it found that there was no evidence that the Department gave the applicant incorrect advice about the application process, I accept the respondent's submission that this was a harmless surplusage of reasoning. Beyond being harmless, I consider that it was appropriate and prudent for the Tribunal expressly to make this reference, given that before the Tribunal, the respondent specifically submitted that the Department giving incorrect advice about the application process may warrant the exercise of the discretion, but those circumstances did not arise in the applicant's case. Finally, it is apparent that the Tribunal did not consider itself limited to the factors that it derived from earlier decisions. At [40] of its reasons, the Tribunal considered an additional factor, that the vehicle was the last vestige of the applicant's inheritance from his parents, which it did not derive from any earlier decision, but rather that was responsive to the applicant's submissions and the particular facts of his application.
76 Second, I do not accept the applicant's submissions that the Tribunal erred in referring to the Importing Vehicles into Australia policy document. The Tribunal, at [33] of its reasons, in addressing the policy objectives of the Act when considering whether or not to exercise the discretion, referred to that policy document and stated that the intended policy objectives of the Act included the "facilitation of importing foreign vehicles belonging to new migrants and Australian expatriates who have lived overseas for an extended period of time and are returning to their home country." This policy objective was accurately identified and is reflected in the Explanatory Statement to the Motor Vehicle Standards Amendment Regulations 2009 (No 1) (Cth), which states that the purpose of the "personal imports scheme" in reg 13 "is to enable migrants and expatriate Australians returning from long periods overseas to bring their vehicles with them". The applicant's submission that the Tribunal's finding that the exercise of the discretion would undermine the intended policy objective of the Act was baseless, requires more detailed consideration. The Tribunal's reasons on this issue are brief. At [33] of its reasons, the Tribunal stated that "the exercise of the discretion would undermine the intended policy objective of the Act, which as set out in the policy document "Importing Vehicles into Australia", includes the facilitation of importing foreign vehicles belonging to new migrants and Australian expatriates who have lived overseas for an extended period of time and are returning to their home country." The Tribunal did not explain in detail why that was so. However, the Tribunal's reasons must be read fairly as a whole and not over scrutinised to discern whether some inadequacy may be gleaned from the way in which the reasons are expressed: Minister for Immigration and Ethnic Affairs v Wu Shan Liang [1996] HCA 6; 185 CLR 259 at [31] (Brennan CJ, Toohey, McHugh and Gummow JJ). When read in the context of the decision as a whole, which involves the Tribunal first finding that the applicant did not satisfy the specific "personal imports scheme" in reg 13 before turning to the general discretion in reg 11, I consider that it is tolerably clear that the Tribunal considered that to approve the application under the general discretion would undermine the policy objective that the import of vehicles that are nonstandard, or do not have an identification plate, should generally be limited to circumstances where the specific criteria in reg 13 are met. In this sense, I consider that the Tribunal adopted the respondent's understanding, as submitted to this Court, of the proper role of the general discretion in reg 11, as outlined at [44] above. The Tribunal's statement that importation under the general discretion would undermine the policy objectives of the Act was premised on its understanding of the general discretion as a "failsafe" that may be exercised where the more specific provisions are not made out, but should not operate so widely as to render those more specific provisions unnecessary or to defeat the purpose of the limited nature of the concessions that they provide. The Tribunal referred to and sought to apply the reasoning of Mansfield J in Selway v Minister for Infrastructure that in some circumstances, an importation under the general discretion might undermine or frustrate the policy objectives of the Act, such that weighty countervailing factors should be required to exercise the general discretion. The Tribunal found that exercising the general discretion would undermine the policy objectives of the Act (at [33]). It then went on to consider potential counter-veiling factors (at [34]-[40]), and concluded that the circumstances did not warrant the exercise of the discretion (at [41]).
77 In respect of the third, fourth and fifth specific aspects of the Tribunal's reasons relied upon by the applicant, I do not accept the respondent's submission that the applicant was seeking only to challenge the merits of the Tribunal's decision. I consider that these parts of the applicant's case properly raised questions of law that are amenable to review by this Court under s 44(1) of the Administrative Appeals Tribunal Act.
78 Third, I do not consider that the Tribunal erred in failing to consider certain matters in addressing the unfairness to the applicant at [34] of its reasons. While the Tribunal was required to provide a statement of reasons referring to the evidence or other material on which its findings were based, the Tribunal was not required to refer expressly in its reasons to every piece of evidence and every contention made to it: Applicant WAEE v Minister for Immigration and Multicultural and Indigenous Affairs [2003] FCAFC 184; 236 FCR 593 at [46] (French, Sackville and Hely JJ); Reece v Webber [2011] FCAFC 33; 192 FCR 254 at [67] (Jacobson, Flick and Reeves JJ). Under this heading, the applicant complained that the Tribunal did not take into account that he had obtained an alternative vehicle for a period of time out of necessity, and that his financial position was poor, and that he was unemployed and living in a regional area. The Tribunal expressly referred to the applicant's poor financial position and reliance on government benefits at [37] of its reasons. The fact that the Tribunal made these references under the heading of financial hardship to the applicant, and not under the heading of unfairness to the applicant, is immaterial: the Tribunal's reasons must be read as a whole. Further and as discussed above, the Tribunal only adopted those headings as a useful checklist, so whether it recorded its consideration of particular material under one heading or another, it all went towards the Tribunal's consideration of whether or not to exercise the broad discretion in reg 11 to approve the applicant's application. The other matters were of marginal relevance and the Tribunal was not required to refer to them expressly.
79 Fourth, I have addressed the applicant's submission that the Tribunal failed to consider, or gave only cursory consideration to, certain matters when considering whether there were any unforeseen circumstances in addressing question 6 of the applicant's amended notice of appeal, below.
80 Fifth, I do not consider that the Tribunal acted unfairly towards the applicant, in the sense that it failed to afford him procedural fairness, by accepting that the economic troubles in Greece were already well established by the time he purchased the vehicle and arrived in Greece, without providing him with an opportunity to be heard on that issue. The Tribunal expressly stated at [39] of its reasons that it made that finding by accepting the respondent's submission. The applicant had ample opportunity to make his own submissions about the point before the Tribunal. Further, as stated by the High Court in SZBEL v Minister for Immigration and Multicultural and Indigenous Affairs at [48] (Gleeson CJ, Kirby, Hayne, Callinan and Heydon JJ) -
..as Lord Diplock said in F Hoffmann-La Roche & Co AG v Secretary of State for Trade and Industry,
"the rules of natural justice do not require the decision maker to disclose what he is minded to decide so that the parties may have a further opportunity of criticising his mental processes before he reaches a final decision. If this were a rule of natural justice only the most talkative of judges would satisfy it and trial by jury would have to be abolished."
Procedural fairness does not require the Tribunal to give an applicant a running commentary upon what it thinks about the evidence that is given. On the contrary, to adopt such a course would be likely to run a serious risk of conveying an impression of prejudgment.
The Tribunal was not obliged to put to the applicant that it was inclined to accept the respondent's submission on this point.
81 For the reasons above, I do not accept that the error of law raised by question 4 is established.