[2025] FCA 1336
General information, not legal advice.
Federal Court of Australia
2025-11-03
Kennett J
Original judgment source is linked above.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
501BA Cancellation of visa - setting aside and substitution of non‑adverse decision under section 501CA
(1) This section applies if:
(a) a delegate of the Minister; or
(b) the ART;
makes a decision under section 501CA (the original decision) to revoke a decision under subsection 501(3A) to cancel a visa that has been granted to a person.
Action by Minister - natural justice does not apply
(2) The Minister may set aside the original decision and cancel a visa that has been granted to the person if:
(a) the Minister is satisfied that the person does not pass the character test because of the operation of:
(i) paragraph 501(6)(a), on the basis of paragraph 501(7)(a), (b) or (c); or
(ii) paragraph 501(6)(e); and
(b) the Minister is satisfied that the cancellation is in the national interest.
(3) The rules of natural justice do not apply to a decision under subsection (2).
(4) The power under subsection (2) may only be exercised by the Minister personally.
Decision not reviewable by application under Part 5
(5) A decision under subsection (2) is not reviewable by application under Part 5.
Note: For notification of decisions under subsection (2), see section 501G.
(1) The new law applies in relation to a thing done by, or in relation to, the AAT as if the thing had been done by, or in relation to, the ART.
(2) This item has effect subject to other items of this Schedule.
The Minister may exercise a power conferred by section 351 of the Migration Act 1958 on or after the transition day in relation to a decision made by the AAT before the transition day under section 349 or 415 of that Act.
(a) It confers a power to take a specific step (to set aside a decision made by a delegate or a tribunal and cancel a person's visa) that is completely discretionary. There is no corresponding duty to take that step. Nor are there any surrounding provisions (such as, for example, provisions for formal applications to be made and considered) from which a duty to consider taking that step might be implied.
(b) The power is brought into play by the making of a decision of a specified kind and is framed as a power to "set aside" that decision, rather than a mere power to cancel the visa.
(a) In Chapman v Minister for Immigration and Multicultural Affairs [2025] FCA 24 Lee J held that, if s 501BA was qualified by an implied time limit (which was unnecessary to decide), that limit was not exceeded in the circumstance of the case by a delay of 7 months. The same approach was taken by Bennett J in GRCF v Minister for Immigration, Citizenship and Multicultural Affairs [2025] FCA 415, in relation to a delay of almost 8 months (although her Honour set aside the Minister's decision on other grounds), and McDonald J in Morgan v Minister for Immigration and Multicultural Affairs [2025] FCA 266 in relation to a delay of 9 months. In Archer v Minister for Immigration, Citizenship and Multicultural Affairs [2025] FCA 471 (Archer) McElwaine J assumed that an implied time limit applied but held that it was not exceeded in the circumstances of that case by the elapsing of around 15 months between the decision of the AAT and the exercise of power by the Minister.
(b) In Eswaran v Minister for Immigration, Citizenship and Multicultural Affairs [2025] FCA 496 (Eswaran), Longbottom J accepted (at [53]) that the "ordinary rule" of statutory construction applied, so that the exercise of power under s 501BA was "subject to a requirement that it be exercised within a reasonable time having regard to the purpose for which the power was conferred and the circumstances in which it falls to be exercised by the Minister". The period that had elapsed between the AAT decision and the exercise of power in that case was around 3 years and 11 months. Longbottom J found, in the circumstances of the case, that there had not been unreasonable delay (at [54]-[69]).
(c) The decision that received significant attention in the parties' submissions was XMBQ v Minister for Immigration and Multicultural Affairs [2025] FCA 553 (XMBQ), in which Horan J granted certiorari to quash a purported exercise of the power in s 501BA(2). His Honour reviewed the decisions mentioned above, held that s 501BA was subject to an implied requirement that any decision to exercise the power be made within a reasonable time, and went on to hold that the period that had elapsed in that case (almost 3 years and 2 months) went beyond a reasonable time.
Accepting that the power under s 501BA must be exercised for the purpose of setting aside an original decision and cancelling the visa, it is a short step to imply a temporal limitation on the exercise of the power by reference to the making of the original decision. Notwithstanding the absence of words such as "upon" or "on" in s 501BA(2), the structure and context of the provision essentially place it in the same territory as the provisions considered in cases such as Koon Wing Lau. The text, context and purpose of s 501BA are sufficient to attract the principle of statutory construction referred to in Koon Wing Lau and subsequent cases, to the effect that an exercise of power under s 501BA to set aside an original decision and cancel a visa must be exercised within a reasonable time after the original decision is made by the delegate or the Tribunal. If the power is not exercised within a reasonable time, it will lapse or expire and will no longer be available for exercise by the Minister. There is nothing in the language or context of s 501BA that is inconsistent with or excludes an implication that the power must be exercised within a reasonable time. Such a construction is supported by the extrinsic material and consistent with the mischief which s 501BA was intended to address.
(a) The question involves "an objective assessment having regard to the facts and circumstances of the particular case" (at [169]).
(b) Authorities on unreasonable delay in the performance of a statutory duty (such as Thornton v Repatriation Commission [1981] FCA 71; (1981) 35 ALR 485 (Fisher J) (Thornton), BMF16 v Minister for Immigration and Border Protection [2016] FCA 1530 at [25]-[26] (Bromberg J), ASP15 v Commonwealth [2016] FCAFC 145; 248 FCR 372 at [21]-[23] (Robertson, Griffiths and Bromwich JJ), Patrick v Australian Information Commissioner [2024] FCAFC 93; 304 FCR 1 at [37]-[46] (Bromwich, Abraham and McEvoy JJ) and Northern Disability Services Pty Ltd v National Disability Insurance Agency [2024] FCA 892 at [111]-[115] (Horan J), which generally pose the question in terms of whether the delay is "in consequence of neglect, oversight or perversity" (Thornton at 492), may be "capable of providing some guidance". However, the implied temporal limitation here is "based on the purpose for which the power under s 501BA is conferred and must be exercised, and the necessary connection between an exercise of power under s 501BA and the original decision to which the power is directed". The relevant threshold is "not necessarily" couched in the terms drawn from Thornton (at [169]).
(c) The applicant bears the onus of establishing jurisdictional error. However, there may be cases where the delay in exercising the power is "prima facie unreasonable in the absence of a satisfactory explanation" and a "'persuasive' onus" falls on the respondent (at [170]).
(d) The relevant inquiry is whether the period as a whole exceeds a reasonable time, rather than whether there was a lack of action during particular periods, although it may be relevant to identify different bases (applicable to different periods) on which the time taken to exercise the power can be explained or justified (at [171]).
(e) It is the whole period that is relevant, and not only the time taken by the Minister personally once a decision has been brought to their attention by departmental officers. It is therefore necessary to examine departmental processes and the steps taken within the Department of Home Affairs (the Department) in response to the decision (at [172]-[173]).
(f) The concept of a reasonable time must allow sufficient time for a proper consideration of the issues raised by a potential exercise of the power. This includes the time needed for the Department to collect information, apply any referral thresholds, ascertain whether the Minister wishes to consider the matter and prepare a detailed submission (at [174]).
(g) On the other hand (at [175]):
... it is also relevant to take into account the impact of a decision under s 501BA(2) on the rights and interests of the person whose visa is cancelled, including its potential impact on the person's liberty, having obtained a decision from a delegate or the Tribunal under s 501CA to reinstate a visa that had been cancelled under s 501(3A).
(h) The volume of cases and the resources available to the Department may be relevant but is not determinative. So too may be any "competing priorities and their associated demands on the Department and the Minister" (at [176]).
It should be kept in mind, however, that the "cohort" of s 501BA cases (whether themselves or together with s 501A cases) would often be expected to raise exceptional and pressing circumstances, which should usually attract a relatively high priority. This is reflected in some of the extrinsic material accompanying the 2014 amendments that introduced s 501BA.
(a) A few days after the AAT decision, on 16 March 2020, a copy of the decision was emailed to an officer in the Complex and Controversial Cases Section (CCCS), which was within the Character and Cancellation Branch (CACB) of the Character, Cancellation and Case Resolution Division of the Department, for consideration. The decision was sent by the CCCS to various "stakeholders" in the Department on 23 March 2020. The AAT decision may therefore be taken to have come to the attention of relevant officers in the Department very soon after it was made.
(b) On 21 December 2020 a document entitled "Section 501 and character-related AAT set aside decision - assessment against Ministerial referral thresholds" (the December 2020 assessment) was saved to TRIM, which is a departmental document management system. The document was unsigned but recorded the author's opinions in relation to the applicant's offending and the existence of any exceptional circumstances. Considering the matter against the then-current referral thresholds (dated February 2020), the author's view was that the case met the "Department to manage" threshold. The author observed:
Mr HOOD does not pose a serious risk to the Australian community as his risk of reoffending was found by the AAT to be unlikely and he is truly remorseful. The AAT decision [is] not inconsistent with community expectations due to Mr HOOD's ties to Australia and low risk of reoffending.
(c) There is no indication in the records that this document was ever signed, endorsed by a relevant supervising officer or disseminated within the Department. If any of these things had happened, normal practice would have required the relevant documents to have been stored in TRIM. It is therefore more likely than not that the December 2020 assessment went no further than a draft.
(d) On 29 June 2021 a National Criminal History Check was sought in respect of the applicant. This is an indication that his case was once again under consideration. Ms Stern deposed that obtaining a check of this kind was "generally the first step undertaken by an officer" in preparing a submission or brief for the Minister or in undertaking a threshold assessment.
(e) However, no further documents relevant to the applicant appear in the departmental records until July 2022. This indicates that consideration of the applicant's case was again paused.
(f) A note in ICSE (another departmental information system) dated 22 July 2022 asks officers to "Contact complex cancellations prior to any visa/citizenship grant". Ms Stern deposes that a note of this kind is inserted by CCCS in respect of every AAT decision that is referred to it. If that is the case, it is not clear why no such note was created in March 2020 (when the AAT decision was sent to CCCS) or in December 2020 or June 2021. In any event, the note indicates that the applicant's case was being considered or intended to be considered by CCCS. The note continues:
A submission may be provided to Minister regarding setting aside AAT decision. Please refer this case to the NCCC should the individual engage in any further conduct of concern.
(g) A new set of referral thresholds was endorsed by the Minister on 29 March 2023 (the March 2023 thresholds). All cases in respect of which no threshold assessment had been completed (which, based on the documentary records, would have included the applicant's case) were reviewed by reference to the new referral thresholds.
(h) A document entitled "Recommendations for endorsement - AAT Set Aside Cases", referring to 11 visa holders including the applicant, was prepared on 8 June 2023 (the June 2023 recommendations). This document contained a recommendation to the effect that the Department should manage the applicant's case. The document has not been signed by any person to indicate agreement or disagreement with this recommendation.
(i) It is not entirely clear what should be drawn from the June 2023 recommendations. Space is provided for a signature by a Mr Eichholzer, who was the director of CCCS at the time, with the options "agreed" and "please discuss". It is blank, and the natural inference is that if Mr Eichholzer saw the document he did not reach a sufficiently firm conclusion to sign it. Curiously, the space provided for Mr Eichholzer's signature has the date " / /2024" underneath it, which suggests a possibility that Ms Stern is incorrect about when the document was created. This was not explored in cross-examination.
(j) In June 2024 the Department requested an updated National Criminal History Check in respect of the applicant for the purpose of "possible visa cancellation". This check was released to the Department by the Australian Criminal Intelligence Commission on 12 July 2024. This, according to Ms Stern, was a result of the Department undertaking "concerted efforts" to reduce what she described as the "outstanding s 501BA(2) caseload".
(k) On 4 September 2024 Ms Lindsay Cartwright, an officer in the AAT Assessment Team, emailed a "threshold assessment" in respect of the applicant for her to review (the September 2024 assessment) to Ms Angela Cullen (Director - Character Cancellations, Assessments, Referrals and Support) for her review. Ms Cullen signed and returned this assessment the following day. The September 2024 assessment proceeded by reference to the March 2023 thresholds. It contained the following recommendation, which Ms Cullen endorsed.
The Department does not consider this case to meet thresholds as Mr HOOD's sentencing did not exceed 10 years imprisonment and departmental records indicate he was not a high profile member of an organised crime syndicate. However, Mr HOOD received lengthy sentences of imprisonment and media articles indicate his co-offender was the president of an OMCG. As such, recommend testing this matter with the Minister.
(l) On 13 September 2024 a note was placed on ICSE in similar terms to the note of July 2022 referred to above.
(m) Although Ms Cullen endorsed the recommendation in the September 2024 assessment and added "Please prepare a Client Brief", it does not appear that any such document was created. (A "Client Brief" was a document prepared for discussion with the Minister, usually about several cases.)
(n) On 3 October 2024 Ms Cartwright sent another email to Ms Cullen attaching an "assessment" in relation to the applicant for Ms Cullen's review (the October 2024 assessment). Ms Cullen signed and returned this assessment on 8 October 2024. This assessment also proceeded by reference to the March 2023 thresholds and contained the following recommendation, which Ms Cullen endorsed.
The Department considers this case to meet thresholds as Mr HOOD's offending has received sentences of eight years nine months and seven years nine months imprisonment.
Although departmental records indicate he was not a high profile member of an organised criminal syndicate, Mr HOOD's co-offender was the president of an OMCG. There was also media coverage of the offending.
Recommend preparing a submission for the Minister.
(o) There is no evidence as to why relevant officers appear to have changed their view of the applicant's case between the September 2024 assessment and the October 2024 assessment.
(p) Work commenced on a draft ministerial submission on 10 October 2024. The draft submission was submitted for "quality assurance" on 6 November 2024, cleared by Ms Stern on 20 November 2024 and cleared by the Acting Assistant Secretary of CACB on 2 December 2024.
(q) The submission was sent to the Assistant Minister's office on 2 December 2024 and the Assistant Minister's decision was made a week later.
Resourcing for the Department's character and cancellations functions has not kept pace with the rapidly growing caseload in this space.
(a) first, that it was unreasonable to exercise the power in s 501BA many years after it became exercisable and in circumstances where there was no suggestion that relevant aspects of the "national interest" had changed in that time;
(b) secondly, that the applicant had been assessed as not meeting the relevant referral thresholds and there was nothing new to trigger a change of position; and
(c) thirdly, that there was nothing before the Assistant Minister to controvert the expert assessment, accepted by the AAT, that the applicant posed a very low risk of reoffending.
I certify that the preceding forty-eight (48) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Kennett.
Hood
Assistant Minister for Immigration [2025] FCA 1336
(1995) 183 CLR 273
(1981) 35 ALR 485