austlii:cth/HCASJ/2025/33
General information, not legal advice.
HCASJ
2025-09-17
Steward J
Original judgment source is linked above.
The defendant is represented by Sparke Helmore Lawyers
"(1) The applicant genuinely has a realistic commitment to:
(a) establish a qualifying business**[8]** in Australia; or
(b) participate in an existing qualifying business in Australia.
(2) The applicant genuinely has a realistic commitment to:
(a) maintain a substantial ownership interest in the qualifying business mentioned in subclause (1); and
(b) maintain a direct and continuous involvement in the management of the qualifying business from day to day, and in the making of decisions that affect the overall direction and performance of the qualifying business, in a manner that benefits the Australian economy."
"[A] short business plan with little detail ... [which] stated the applicant's intentions to inject approximately AUD 1 million into a new Adelaide-based agricultural produce export business dealing in meats, grains, honey, and natural products. The business is forecast to potentially achieve a turnover of at least AUD 800,000 within the first 2 years and then generate annual turnover of AUD 1 million from the 5th year onward."
"In the case of the applicant's proposed business activity in Australia (as per paragraph 132.227(1)(a) requirements), I acknowledge the applicant's intentions are to establish an agricultural product export business in South Australia. However, for the reasons outlined below, I am not satisfied the applicant satisfies paragraph 132.227(1)(a) and paragraph 132.227(2)(a) and (b):
• There is no evidence on file to suggest the applicant holds specialised skills in the food and agriculture export business industry.
• There is no evidence on file to suggest the applicant's proposed business activity will substitute existing services in Australia, or introduce any new or improved technology, product, or service in a key sector such as new medical technology or renewables energy /or materials.
• The applicant's business plan does not address legal requirements, regulations, mandatory industry codes & standards, insurance with regard to the exporting and wholesale trading industry and understanding of trading laws, licencing/or permits requirements.
• The applicant's business plan does not address details regarding employment opportunities for Australian citizens, Australian permanent residents or holders of a valid New Zealand passport, or if the positions will offer competitive wages.
• There is no evidence that the proposed business holds successful patents that would introduce new products or processes to the Australian market nor does it involve innovation activities, such as sourcing venture capital funding towards product development or manufacturing.
I accept that the establishment of an agricultural export business may provide some benefit to Australian agriculture and some employment opportunities; however, there is no evidence before me to suggest such a business proposal will deliver any of the other expected outcomes of the Business program listed above.
As a result, I am not satisfied the applicant's intentions to establish an agricultural export business in Australia are genuine, realistic or commensurate to the expected outcomes of the Business Skills program, or will offer any significant benefit to the Australian economy. Therefore, paragraph 132.227(1)(a) , 132.227(2)(a) and 132.227(2)(b) are not met by the applicant.
I have also given consideration to paragraph 132.227(1)(b) which enables an applicant to participate in an existing Australian business, rather than establishing one on their own. In the case of the applicant, there is no material evidence before the Department to support the possibility the applicant could become involved in an already operating Australian business. Therefore, paragraph 132.227(1)(b) is not met by the applicant.
As paragraphs 132.227(1)(a) and paragraph 132.227(1)(b) have not been satisfied, subclause 132.227(1) is not met by the applicant. As subclauses 132.227(1) and (2) are not satisfied, clause 132.227 is not met."
"1. An extension of the time for making this application to 6 June 2025 pursuant to the Migration Act 1958 (Cth) ('the Act') s 486A(2) and the High Court Rules 2004 rule 4.02.
"The defendant's delegate failed to address the correct statutory question.
"Where the Minister misconstrues one of the criteria prescribed in the Act or Regulations and, because of that misconstruction he considers that the criterion has not been satisfied, it is as though he did not consider the criterion at all. For, on the face of it, he has failed to ask the question which the Act and Regulations, upon a proper construction of the criterion, require him to ask. In such a case ... the Minister's decision would be a nullity. The Minister has not done that which the Act requires him to have done. The decision would be a purported decision of no legal effect."
(1) The delegate did not misconstrue the criteria in cl 132.227
"Policy guidelines ... promote values of consistency and rationality in decision-making, and the principle that administrative decision-makers should treat like cases alike. In particular, policies or guidelines may help to promote consistency in 'high volume decision-making' ... Thus in Drake v Minister for Immigration and Ethnic Affairs (No 2), Brennan J, as President of the Administrative Appeals Tribunal, said that '[n]ot only is it lawful for the Minister to form a guiding policy; its promulgation is desirable' because the adoption of a guiding policy serves, among other things, to assure the integrity of administrative decision-making by 'diminishing the importance of individual predilection' and 'the inconsistencies which might otherwise appear in a series of decisions'. The subjectivity of the evaluation by a decision-maker in a case such as the present highlights the importance of guidelines. The importance of avoiding individual predilection and inconsistency in making choices between a large number of generally qualified candidates by the application of [an] open-textured criterion ... is readily apparent."
(a) As noted above, the delegate set out the cl 132.227 criteria in full in his reasons. The business establishment/maintenance requirement in sub-cl (1)(a) and (2)(a) is relatively basic and straightforward, and there is no basis for inferring that the delegate did not read and understand it.
(b) In the key conclusionary passage (with which the plaintiff takes issue), the delegate outlined each of the distinct bases on which he was not satisfied that the cl 132.227 criteria were met, each of which were separated by the word: "or". He relevantly said that he was not "satisfied the applicant's intentions to establish an agricultural export business in Australia are genuine, realistic or",[24] before going on to advert to the other matters. It is apparent from this that the delegate correctly understood that failure to meet the business establishment/maintenance requirement was a distinct and freestanding reason for which the Visa Application must be refused.
(c) The delegate demonstrated a clear understanding of the Policy, which itself draws a distinction between the different criteria in cl 132.227. This renders it further improbable that any error (derived from the Policy) in the delegate's approach to the business operations/benefits requirement infected his approach to the business establishment/maintenance requirement. In particular, for example:
(i) the Policy at 3.10.3.3 clearly outlined the applicable criteria as being distinct and separate, in the following terms:
"The applicant satisfying the primary criteria is required to demonstrate that:
(ii) whereas the Policy at 3.10.3.7 addressed how the "benefit to Australia" criterion would be satisfied (see above at [27]), the Policy at 3.10.3.8 separately outlined the factors to which regard should be had "[i]n assessing whether the applicant's (realistic) commitment to establishing (or participating in) and maintaining involvement in a business or investment in Australia is genuine".
(d) The delegate expressly made multiple findings which, in any event, would tend to lead a rational decision-maker to doubt whether the plaintiff genuinely had a realistic commitment to establishing and maintaining a substantial ownership interest in the proposed agriculture export business, including that:
(i) the plaintiff had submitted limited evidence concerning his proposed business, save largely only for his Business Plan, which was "a short business plan with little detail";
(ii) "[t]here is no evidence on file to suggest the applicant holds specialised skills in the food and agriculture export business industry"; and
(iii) "[t]he applicant's business plan does not address legal requirements, regulations, mandatory industry codes & standards, insurance with regard to the exporting and wholesale trading industry and understanding of trading laws, licencing/or permits requirements".
[1] This subclass of Australian visa was permanently closed to new applicants in July 2024. However, the plaintiff's application was nevertheless processed on the basis that it was lodged prior to that date (see below).
[2] Explanatory Statement, Migration Amendment Regulation 2012 (No 2) (Cth) at 48.
[3] Migration Regulations 1994 (Cth), Sch 2, cl 132.212.
[4] Migration Regulations 1994 (Cth), Sch 2, 132.221.
[5] Unreported (B37/2012), 1 November 2012 per Kiefel J.
[6] Unreported (C1/2022), 22 July 2022 per Steward J.
[7] Both the plaintiff and Minister accept that cl 132.227 prescribed criteria which needed to be met for the Visa to be granted. See Migration Act 1958 (Cth), s 31(3); Migration Regulations 1994 (Cth), reg 2.03.
[8] A "qualifying business" is defined by reg 1.03 of the Migration Regulations 1994 (Cth) to mean "an enterprise that: (a) is operated for the purpose of making profit through the provision of goods, services or goods and services (other than the provision of rental property) to the public; and (b) is not operated primarily or substantially for the purpose of speculative or passive investment".
[9] Emphasis added to the Delegate's Decision.
[10] Emphasis in the plaintiff's written submissions.
[11] [2003] FCAFC 168; (2003) 132 FCR 93 at 106 [43].
[12] Minister for Immigration and Ethnic Affairs v Wu Shan Liang (1996) 185 CLR 259 at 271-272.
[13] Minister for Immigration and Ethnic Affairs v Wu Shan Liang (1996) 185 CLR 259 at 272.
[14] [1999] FCA 615 at [39].
[15] [2015] HCA 50; (2015) 258 CLR 173 at 194 [54], quoting Drake v Minister for Immigration and Ethnic Affairs [No 2] (1979) 2 ALD 634 at 640-642 (citations omitted).
[16] See, for example, Lobo v Minister for Immigration and Multicultural and Indigenous Affairs [2003] FCAFC 168; (2003) 132 FCR 93 at 112-113 [63]- [65].
[17] [2015] HCA 50; (2015) 258 CLR 173 at 194 [54].
[19] See generally Prentice v Nugan Packing Co Ltd [1950] HCA 51; (1950) 81 CLR 558 at 564-565; Commissioner of Taxation (Cth) v Barton [1957] HCA 5; (1957) 96 CLR 359 at 368.
[20] Explanatory Statement, Migration Amendment Regulation 2012 (No 2) (Cth) at 48 (emphasis added).
[21] LPDT v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2024] HCA 12; (2024) 280 CLR 321 at 327 [7] (emphasis in original).
[22] LPDT v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2024] HCA 12; (2024) 280 CLR 321 at 329 [16].
[23] For completeness, as noted above, in lieu of "establish[ing] a qualifying business in Australia", it was also open to the plaintiff to instead "participate in an existing qualifying business in Australia" pursuant to cl 132.227(1)(b). This is of no consequence in the present matter; the plaintiff's Business Plan was directed solely to the establishment of his own qualifying business. As the delegate observed: "there is no material evidence ... to support the possibility the applicant could become involved in an already operating Australian business".
(2003) 132 FCR 93
(1996) 185 CLR 259
(2015) 258 CLR 173
(1950) 81 CLR 558
(1957) 96 CLR 359
(2024) 280 CLR 321