An alternative analysis
71 If, contrary to the view I have formed, the Minister is correct in his submission that an error of the same kind involving the same statutory power and the same statutory visa criterion can be transformed from jurisdictional to non-jurisdictional depending on whether the error can be said to have "affected" the exercise of the Tribunal's review power, I would have reached the same conclusion in this appeal. In my opinion, the error about cl 820.211(2)(d)(ii) was capable of affecting the exercise of the Tribunal's review power and its approach to PIC 4004.
72 That is because the Tribunal's error about cl 820.211(2)(d)(ii) concerned a visa criterion with a significant discretionary element. What are, or are not, "compelling reasons" will be highly fact dependent. Likewise, given that the criterion in PIC 4004 must be satisfied at the time of decision, the Tribunal had some discretionary scope about when it proposed to make its decision, and thus retained some discretion about whether the first respondent would be able to meet that criterion. There is also a discretionary element to what constitutes "appropriate" arrangements to repay a debt due to the Commonwealth. The Tribunal allowed just over a week between the hearing and its decision, in case the first respondent might of his own volition have decided to pay the debt. It is not possible to be so certain it would have reached the same conclusion on cl 820.211(2)(d)(ii) if properly instructed and if it had looked at the evidence and material before it at the time of its decision. It is not possible to say how taking the correct approach to "compelling reasons" may have affected the Tribunal's approach to whether the first respondent should be given a qualitatively different opportunity to make "appropriate arrangements" to pay his debt to the Commonwealth. Perhaps it would, perhaps it would not - the Court must be astute not to descend into merits review by endorsing what it considers to be the "inevitable" outcome given the reasoning of the Tribunal, which reasoning is affected by error. That is why, in circumstances dealing with denial of procedural fairness, the bar is set as low as a "possibility" of a different outcome, as the High Court in Stead v State Government Insurance Commission [1986] HCA 54; 161 CLR 141 at 147 made clear. To set the bar any higher would embroil the Court in deciding what the outcome of the merits review would or should have been.
73 If the Tribunal had approached the evidence and material before it on the basis of deciding what the factual situation was at the time it completed its review, rather than the time of application, it is not possible to determine the Tribunal would inevitably have concluded the first respondent did not demonstrate "compelling reasons". In Waensila, at [18], Robertson J set out the purpose of the criterion in cl 820.211(2)(d)(ii), expressed in the present tense, as his Honour emphasised.
Further, if, as I accept, the purpose of the Minister's discretion in cl 820.211(2)(d)(ii) is to give the Minister greater flexibility if and when compelling circumstances arise and, for example, to avoid hardship to the visa applicant, then to my mind it would be inconsistent with that purpose to limit the circumstances the Minister may take into account to circumstances existing at some past point. The immediate purpose of the discretion is to relieve the visa applicant from being required to satisfy at the time of application Sch 3 criteria 3001, 3003 and 3004. I see no reason to limit the circumstances, whether they favour the visa applicant or not, to the position at a time before, and often substantially before, the Minister considers the exercise of that discretion. Clause 820.211(2)(d)(ii) is an ameliorating provision and it should not, in my opinion, be given a construction which prevents the Minister, at the time of his decision, from taking into account in assessing "compelling reasons", the circumstances which prevail at that time.
74 Dowsett J emphasised the same purpose (at [2]):
As demonstrated by Robertson and Griffiths JJ, the power is designed to provide flexibility in the operation of the legislative and regulatory scheme. That flexibility ought not be limited by limiting the circumstances which may be relevant to the exercise of the power, at least in the absence of any statutory or regulatory requirement.
75 Properly instructed, there may have been matters in the material which would have caused the Tribunal to re-think its approach to the first respondent's circumstances. As I have noted above, the Court must be astute not to assess the material itself, and assess the course of the Tribunal's (erroneously based) reasoning so as to in effect reach a conclusion about what the merits outcome of the review "would" have been. This is especially so when both criteria have discretionary elements. If the Tribunal might have taken a different approach to cl 820.211(2)(d)(ii), it is also possible the Tribunal might have taken a different approach to the discretionary elements in PIC 4004.
76 It is not correct to say, as was suggested during argument on the appeal, the Tribunal "had no jurisdiction" to grant the first respondent a visa because of the non-payment of the debt to the Commonwealth. That proposition is too absolute. PIC 4004 is a "time of decision" criterion. That meant the debt could be paid at any time up to the time the Tribunal made its decision and if paid, then PIC 4004 would be satisfied. The Tribunal could allow a considerable period of time after the review hearing and before decision to allow this to occur. PIC 4004 also included an alternative: namely that the Tribunal was satisfied "appropriate arrangements" had been made to pay the debt. In terms, that could be something less than full payment of the debt prior to the completion of the Tribunal's review, and the Tribunal could nevertheless be satisfied that visa criterion was met. The Tribunal, having conduct of the review and being in control of the time at which it decided to bring the review to an end, had control of the time at which a criterion such as PIC 4004 needed to be met, and how it needed to be met. If minded or persuaded to do so, it could have given the first respondent a certain period of time in which to pay the debt, or make arrangements. Indeed, by the terms of its decision which I have extracted at [45] above, it appears to have waited approximately nine days to see if the first respondent, of his own volition, made any payment arrangements. If the debt were paid or such arrangements made to the Tribunal's satisfaction, then PIC 4004 would no longer be a legal impediment to the grant of a visa, although at the time of hearing it may well have been. There is a real element of discretion in the Tribunal where "time of decision" criteria are capable of ongoing fulfilment, and in the case of PIC 4004 in particular, some discretion about what arrangements the Tribunal considers "appropriate".
77 The two visa criteria in issue on the review before the Tribunal, although separate, were not entirely independent of each other. The Court should proceed on the basis that, properly instructed, the Tribunal retains an open and persuadable mind. There are discretionary and subjective elements in the assessment of both criteria. It is common, and entirely proper, on merits review, that an applicant may - at the discretion of the Tribunal - be given time to satisfy a criterion (see, for example, the Tribunal's decisions the subject of appeal in Minister for Immigration and Border Protection v Singh [2014] FCAFC 1; 231 FCR 437, and Minister for Immigration and Citizenship v Dhanoa [2009] FCAFC 153, 180 FCR 510). That is not to say a Tribunal must do so: it is simply to illustrate that the time over which the review continues is at the control of the Tribunal, and circumstances may change for an applicant (to her or his advantage or detriment). Whether "compelling reasons" exist at the time of the conclusion of a review hearing may persuade a Tribunal to give an applicant a longer period of time to meet PIC 4004.
78 As to the authorities relied on by the Minister, I consider the decision in VCAD v Minister for Immigration and Multicultural and Indigenous Affairs [2005] FCAFC 1 can be distinguished.
79 VCAD was a protection visa case, concerning an applicant's claims to fear persecution on the basis of a refusal to perform compulsory military service. Kenny J, the primary judge, identified the error thus (in VCAD v Minister for Immigration and Multicultural and Indigenous Affairs [2004] FCA 1005 at [35]):
As noted above, whilst the Tribunal in the present case referred to the applicant's claim that he was 'religiously opposed to war', it made no finding as to whether his avoidance of military service arose from a conscientious objection and, if so, whether that objection was a religious one. The Tribunal apparently proceeded on the mistaken basis that a law of general operation, which did not expressly discriminate or inflict disproportionate punishment, could not support a well-founded fear of persecution for a Convention reason. This is plainly erroneous, and involved the Tribunal asking itself the wrong question. There may well be a well-founded fear of persecution because a law, neutral on its face, has an indirect discriminatory effect or indirectly inflicts disproportionate injury, for a Convention-related reason.
80 However, her Honour did not find this error entitled the applicant to relief by way of an order in the nature of certiorari to set aside the Tribunal's decision. Her Honour held (at [36]) that the Tribunal found that there was an amnesty in Yugoslavia for "draft dodgers and deserters" ("draft dodger" being how the Tribunal characterised the applicant's claims). Her Honour went on to say that:
Given this finding, the Tribunal was justified in concluding that the applicant would not be persecuted in Yugoslavia for any Convention reason that included his religious or political objections to military service. I accept that, as the respondent submitted, the applicant is not entitled to relief in a case where the decision must have been made regardless of an identified error in the decision-maker's reasons for decision.
(Emphasis added.)
81 Two (related) matters must be noted about VCAD, and Kenny J's reasons. First, since this was a protection visa case, the criterion in issue (and the formation of the requisite state of satisfaction for the purposes of s 65 and the jurisdictional fact it has been held to create) was, relevantly, the Art 1A criterion from the Refugees Convention (Convention Relating to the Status of Refugees, done at Geneva on 28 July 1951 as amended by the Protocol Relating to the Status of Refugees, done at New York on 31 January 1967). Although that has several limbs, for the purposes of s 36 of the Migration Act it was one criterion: see s 36(2)(a) as it stood at the time of VCAD. Second, the Tribunal's further factual finding was not something that was susceptible to change, because it was a finding of fact about the situation in Yugoslavia which provided an objectively separate basis for the Tribunal's state of satisfaction that the Art 1A criterion was not met.
82 In my opinion, Kenny J's reasoning is also not inconsistent with her Honour's approach being refusal of relief on a discretionary basis. There is certainly nothing to the effect of the Minister's argument before this Court that is present in Kenny J's reasons.
83 On appeal, as Gray J noted at [18], the appellant's arguments centred on the proposition that:
…her Honour was wrong to hold that the fact that an amnesty had been declared justified the Tribunal in concluding that the appellant would not be persecuted for any Convention reason.
84 At [19], Gray J said:
It is clear that the Tribunal's conclusion that the appellant did not have a well-founded fear of persecution for any Convention reason, should he return to Yugoslavia, was based on the Tribunal's findings that the situation in Yugoslavia had changed considerably since the occurrence of the events dealt with in the appellant's claims. One of these changes was the declaration of the amnesty for draft evaders and deserters.
(Emphasis added.)
85 At [20], Gray J found the general conclusion by the Tribunal that the situation in Yugoslavia had changed was open to the Tribunal on the material before it.
86 The two passages on which the Minister relies are at [22] and [23] of Gray J's reasons:
It is true, as counsel for the appellant submitted, that the Tribunal's expressed reasons can be taken to expose its reasoning. They may reveal errors of omission or commission. See Minister for Immigration & Multicultural Affairs v Yusuf [2001] HCA 30 (2001) 206 CLR 323 at [69] per McHugh, Gummow and Hayne JJ. This does not lead to the conclusion that, whenever the Tribunal's reasons disclose that it has made an error, its decision must be set aside. In order to be a jurisdictional error of one of the kinds described by McHugh, Gummow and Hayne JJ in Yusuf at [82], the error must be of a kind that 'affects the exercise of power'. The powers of the Tribunal are found in s 415 of the Migration Act. They include powers to affirm or vary a decision, and the power to set aside a decision and substitute a new decision. When the Tribunal's decision as to how it will exercise its powers is based on a conclusion unrelated to the error, the exercise of power is not affected. Kenny J was correct in holding that the Tribunal's decision in the present case was based on its finding as to the amnesty, so that the error in the Tribunal's approach to the law requiring compulsory military service in the appellant's country of origin did not affect the exercise of the Tribunal's power.
There have been numerous cases in which decisions of tribunals under the Migration Act have been upheld, notwithstanding error apparent in the tribunals' reasons, because those reasons also disclose that there is another basis on which the tribunal concerned found against the person applying for a visa. Recent examples include NAIF v Minister for Immigration & Multicultural & Indigenous Affairs [2005] FCA 114 at [17], VBAP v Minister for Immigration & Multicultural & Indigenous Affairs [2005] FCA 965 at [33] and NAUW v Minister for Immigration & Multicultural & Indigenous Affairs [2005] FCA 1086 at [24].
87 In these passages, Gray J does not articulate the argument that the Minister makes in the present appeal. How his Honour interpreted what was said in Yusuf is not set out. What his Honour meant by a "conclusion unrelated to the error" is left unspecified, but what can be said with certainty is that in VCAD, as in all the cases to which his Honour referred at [23], there was a single visa criterion under consideration: that is, the Art 1A criterion. Whether the formation of the Tribunal's state of satisfaction on that criterion miscarried in a jurisdictional sense because of an identified error will always depend on the nature of the error, the nature of the statutory provision(s) and power(s) in issue, and, returning to the language in Kirk, the gravity and materiality of that error in the context of the exercise of power involved.
88 The distinction is apparent from the reasons of Sundberg and North JJ in VCAD at [45]:
Section 430(1)(c) of the Migration Act requires the Tribunal to prepare a written statement that sets out any findings on any material questions of fact. The Tribunal found that because of the amnesty the appellant was not at risk of persecution. It then added:
'Even if the applicant were to face some punishment, penalty or sanctions, (even though this has been ruled out by the amnesty) such sanctions would be imposed because of his failure to perform military service and not attributable to his political opinion, membership of a particular social group or any other Convention ground.'
This statement, although erroneous, is merely an unnecessary fall-back position: as demonstrated by the words in parentheses referring to the amnesty. As such, it does not demonstrate that the error identified by the primary judge may have affected the Tribunal's decision.
89 In my opinion, the same analysis applies to the decisions in SZTBW v Minister for Immigration and Border Protection [2014] FCA 1277 at [19]-[20] (Perry J) and SZOOR v Minister for Immigration and Citizenship [2012] FCAFC 58; (2012) 202 FCR 1 (SZOOR) at [102] (McKerracher J) and [114] (Reeves J). In these decisions, the reviewing Court is identifying that the formation of the state of satisfaction as to Art 1A did not miscarry in a jurisdictional sense.
90 The problem with drawing analogies with protection visa decisions is the multifarious nature of the Art 1A criterion, as these decisions all demonstrate, especially where what is subject to judicial review are credibility findings by the Tribunal, and the fact finding which led to them. Hence one finds statements such as that by McKerracher J in SZOOR at [87]:
From the summary appearing above, it is evident that the third Tribunal, independently of the anonymous letter, concluded that the corroborative documentary material was obviously and deliberately fabricated.
91 In other words, in many cases (SZOOR being one of them) the intermediate finding by the Tribunal that an applicant was not credible was composed of many strands, only one of those strands being identified (or, in SZOOR, assumed for the sake of argument) to be erroneous.
92 The nature of the error alleged is also important. For example, in SZOOR, the error was said to be the irrationality of a particular factual finding. It is not difficult to see how a reviewing Court might find (or assume) irrationality in one factual finding yet not be persuaded that it caused the decision-maker's overall state of satisfaction on a visa criterion to miscarry.
93 Finally, it is by no means apparent in many of the decisions on which the Minister relies that the reviewing Court was doing anything other than examining the grant of relief as a discretionary consideration. For example, in SZOOR, McKerracher J said (at [95]-[96]):
Accepting there was some reliance on the anonymous letter and assuming for present discussion that there should not have been, it has long been recognised (as discussed by Siopis J in Kabir v Minister for Immigration and Citizenship (2010) 118 ALD 513) judicial review relief may be withheld if granting it would be futile to the result. Special leave to appeal to the High Court was refused in Kabir v Minister for Immigration and Citizenship [2011] HCASL 24.
Ultimately it comes down to a question of whether it can be said that the grant of relief could not possibly make a difference to the Tribunal's eventual deliberations. This was the test enunciated by the High Court in Stead v State Government Insurance Commission (1986) 161 CLR 141 and see also Re Refugee Review Tribunal; Ex parte Aala (2000) 204 CLR 82 and NAIS v Minister for Immigration and Multicultural and Indigenous Affairs (2005) 228 CLR 470. Nevertheless, it is clear from such cases and, in particular Aala, the grant of relief under constitutional writs is a matter for discretion, much depending on the facts and circumstances of each case. The majority in Aala held, as Gleeson CJ noted (in [4]-[5]) that it could not be concluded that the denial of procedural fairness made no difference to the outcome of the proceeding. All members of the High Court, however, adopted the same or similar test. All members recognised that not every breach of the rules of natural justice would affect the making of a decision. As McHugh J (who was in dissent in the actual result) observed (at [104]), a breach of the rules of natural justice would not automatically invalidate a decision adverse to a party affected by the breach. His Honour noted that in Stead the High Court had already observed that "not every departure from the rules of natural justice of a trial will entitle the aggrieved party to a new trial". However, his Honour, as with the majority, emphasised that a court should refuse relief only when it is confident that the breach could not have affected the outcome.
94 In my opinion the Federal Circuit Court simply took the approach McKerracher J has outlined in SZOOR above.
95 After the Court reserved its decision, the parties drew the Court's attention to a recent Full Court decision in Shrestha v Minister for Immigration and Border Protection [2017] FCAFC 69. In particular, the parties referred the Court to [12]-[17], [41]-[48] and [121]-[127] of the Full Court's reasons in Shrestha. Having considered that decision, I do not consider it affects the conclusions I have reached. In Shrestha, each of the judges on the Full Court was relevantly concerned with the application of principles concerning the discretionary withholding of relief where jurisdictional error was established, and the appropriate threshold for determining whether relief should be withheld. As I note below, the question of the appropriate threshold for withholding relief on a discretionary basis was not in issue on this appeal, due to the concession made by the Minister on the appeal.