THE RESPONDENT'S NOTICE OF CONTENTION
74 Ground 1 of the notice of contention asserts that the decision in BAL19 was correctly decided and that KDSP and BFW20 were wrongly decided. The respondent also says that the Tribunal did not exceed jurisdiction by applying the prevailing law in BAL19 in accordance with the agreed position between the parties, for the reasons set out in submissions before the primary judge. In particular, the respondent argues that the decision in Minister for Industrial Relations (Vic) v Esso Australia Pty Ltd [2019] FCAFC 26; (2019) 268 FCR 520 (at [45]-[47], [58]-[59] and [104]-[107]) establishes that, although with the benefit of the decisions in KDSP and BFW20, it can now be said that the Tribunal's application of BAL19 in accordance with the agreement of the parties was erroneous, such error could not be jurisdictional because the Tribunal correctly applied the law as it then stood. The respondent says the parties had jointly submitted to the Tribunal that it should set aside the delegate's decision on the basis of BAL19. If the Tribunal had then remitted the matter for reconsideration, as the Minster sought, that is if an order had been made under s 43(1)(c)(ii) rather than s 43(1)(c)(i), it could not be suggested that the Tribunal's decision would be a nullity, along with any subsequent decision of the Minister following remittal.
75 It does not appear that the parties actually "jointly submitted", as the respondent suggests, that the Tribunal should set aside the delegate's decision. The solicitor for the Minister accepted that the Tribunal was bound by BAL19, but maintained the position that it was wrongly decided. For reasons given by the primary judge (at [24]-[31]), the Full Court's judgment in Esso does not support the contention advanced for the respondent. If the reasoning in Esso is applied to the circumstances of the present, following the Full Court judgments in KDSP and BFW20, the Tribunal fell into jurisdictional error by proceeding on the basis that the power in s 501(1) was not available to be exercised and that it was required to set aside the delegate's decision. For the Tribunal to proceed on an erroneous understanding of such a fundamental aspect of its task as conferred by the Act cannot be said to be within jurisdiction.
76 In those circumstances, this aspect of ground 1 of the notice of contention cannot succeed.
77 In the alternative, the respondent also submits as part of ground 1 that the primary judge's reasons should be affirmed on the basis that the decisions in KDSP and BFW20 are wrong because the decision in BAL19 was correct. This, senior counsel for the respondent acknowledged, was an ambitious submission, given that eight judges of the Court in KDSP and BFW20 have all confirmed that BAL19 was wrongly decided. Special leave to appeal in KDSP was recently refused by the High Court. Ground 1 must be rejected.
78 Success on Ground 2 of the notice of contention, as we understand it, could not assist the respondent in light of our rejection of ground 1. As such, we will deal with this ground only briefly.
79 Ground 2 of the notice of contention asserts that s 43 of the AAT Act did confer power on the Tribunal to grant the respondent a visa in substitution for the decision of the delegate. It is necessary to set out the relevant parts of s 43 of the AAT Act and ss 65 and 501 of the Act as follows:
AAT Act
43 Tribunal's decision on review
…
Tribunal's decision on review
(1) For the purpose of reviewing a decision, the Tribunal may exercise all the powers and discretions that are conferred by any relevant enactment on the person who made the decision and shall make a decision in writing:
(a) affirming the decision under review;
(b) varying the decision under review; or
(c) setting aside the decision under review and:
(i) making a decision in substitution for the decision so set aside; or
(ii) remitting the matter for reconsideration in accordance with any directions or recommendations of the Tribunal.
Migration Act
65 Decision to grant or refuse to grant visa
(1) Subject to sections 84 and 86, after considering a valid application for a visa, the Minister:
(a) if satisfied that:
(i) the health criteria for it (if any) have been satisfied; and
(ii) the other criteria for it prescribed by this Act or the regulations have been satisfied; and
(iii) the grant of the visa is not prevented by section 40 (circumstances when granted), 91W (evidence of identity and bogus documents), 91WA (bogus documents and destroying identity documents), 91WB (applications for protection visas by members of same family unit), 500A (refusal or cancellation of temporary safe haven visas), 501 (special power to refuse or cancel) or any other provision of this Act or of any other law of the Commonwealth; and
(iv) any amount of visa application charge payable in relation to the application has been paid;
is to grant the visa; or
(b) if not so satisfied, is to refuse to grant the visa.
Note 1: Section 84 allows the Minister to suspend the processing of applications for visas of a kind specified in a determination made under that section. Section 86 prevents the Minister from granting a visa of a kind specified in a determination under section 85 if the number of such visas granted in a specified financial year has reached a specified maximum number.
Note 2: See also section 195A, under which the Minister has a non-compellable power to grant a visa to a person in detention under section 189 (whether or not the person has applied for the visa). Subdivision AA, this Subdivision, Subdivision AF and the regulations do not apply to the Minister's power under that section.
Note 3: Decisions to refuse to grant protection visas to fast track review applicants must generally be referred to the Immigration Assessment Authority: see Part 7AA.
…
501 Refusal or cancellation of visa on character grounds
Decision of Minister or delegate - natural justice applies
(1) The Minister may refuse to grant a visa to a person if the person does not satisfy the Minister that the person passes the character test.
Note: Character test is defined by subsection (6).
…
80 The respondent puts his argument this way:
(a) there is no separate challenge by the Minister to the Tribunal's decision that, if it did have power to do so, the preferable course was to grant the visa. It is a pure question of law, about whether s 43(1) of the AAT Act is broad enough to confer power to substitute a decision to grant a visa under a different provision of the legislation, namely, s 65 of the Act:
(b) It can be accepted that the Tribunal's jurisdiction in the present case was that conferred by s 500(1)(b) of the Act to review the decision of the delegate of the Minister to refuse to grant the visa under s 501(1), but that does not answer the question as to what the Tribunal's powers were on such a review;
(c) section 43(1) provides that the Tribunal may exercise all the powers and discretions conferred by any relevant enactment on the person who made the decision, provided that those powers and discretions are exercised for the purpose of reviewing a decision;
(d) conferral of power should not be narrowly construed. The Tribunal stands in the shoes of the primary decision-maker, in this case the delegate of the Minister, and can exercise all of the powers and discretions conferred by the Act and potentially, by other Acts, on the Minister for the purposes of reviewing that decision;
(e) the question is not whether it should exercise those powers, but whether it has those powers: Social Security, Secretary, Department of v Hodgson (1992) 37 FCR 32 (at 39-40); and Australian Securities & Investments Commission v Donald [2003] FCAFC 318; (2003) 136 FCR 7 per Kenny J (at [21] and [24]-[36]) and Downes J (at [56]-[60]);
(f) the relevant decision-making process in dealing with a protection visa application encompasses the powers conferred by s 501 and extends to the entire decision-making process, from the duty to consider the application in s 47 right through to the power to grant or refuse to grant a visa under s 65 of the Act;
(g) although there is no need to show a direct interrelationship or dependence of the provisions, it is clear when one looks at s 65 and s 66 that they are interrelated and interlocking with the powers under s 501 of the Act. The Minister's duty under s 47 to consider a valid application for a visa culminates in a decision to grant or refuse a visa, a binary decision-making function. Section 65, which deals with the culmination of that function, expressly incorporates as one of the specified matters that need to be addressed in making the decision to grant or refuse, whether or not the grant of the visa is prevented by s 501, the special power to refuse or cancel;
(h) so if a decision is made, as here, to refuse to grant a visa on character grounds under s 501, that will attract s 65A(3) and lead to a decision under s 65B of the Act to refuse to grant the visa;
(i) there is also a separate notification and reasons provision in s 501G such that s 65 and s 66 are framed to accommodate decisions under s 501 of the Act. As to that interrelationship, in the recent Full Court decision in KDSP, Bromberg J took the view that a decision to exercise the power conferred by s 501 results in a decision under s 65;
(j) it follows that the consequence of this is that the powers and discretions or duties conferred by s 65 and s 501 are sufficiently related that the powers in s 65 to grant a visa can be exercised by the Tribunal for the purposes of reviewing a decision to refuse to grant a visa under s 501. There is no need for dependence between those provisions, it is sufficient that the test is one of relevance, and there's no reason for a narrow construction of the Tribunal's powers under s 43 in their application to the Tribunal;
(k) finally, nothing in the High Court's decision in Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) 235 CLR 286 requires any different approach; and
(l) the question becomes whether the Tribunal could have considered the exercise of the power to grant a visa under s 65 if all other visa criteria had been met.
81 This approach is, with respect, an artificial and strained construct. The simple reality is that the Tribunal based its decision on a view of the law which was correct at the time, but is now shown to have been incorrect. It is an artificial reconstruction of the events to suggest that it had another source of power which it might have utilised to reach the same decision.
82 Were it necessary to reach a concluded view, we would respectfully reject these arguments. The Tribunal fell into jurisdictional error by purporting to grant a SHEV to the respondent primarily because its review function was limited to deciding whether or not to refuse the grant of a SHEV under s 501(1) of the Act, that being the power conferred on the decision-maker whose decision the Tribunal reviewed under s 500(1)(b). That latter provision did not confer any power on the Tribunal to review a decision made by the Minister (or a delegate) under s 65(1)(b) of the Act, or to make a primary decision under that provision. No decision-maker ever reached any state of satisfaction in relation to the criteria for the purposes of the exercise of a power under s 65, nor did the Tribunal itself consider any of the other visa criteria. Assuming the Tribunal was entitled to take on the role of a decision-maker under s 65(1) of the Act, the fact that the parties presented an agreed position to the Tribunal did not obviate the need for it to reach a state of satisfaction as to whether at the time of its decision the respondent satisfied all of the criteria for the grant of a SHEV. A concession does not permit the Tribunal "to avoid its duty as an administrative decision-maker to make the correct or preferable decision … on all relevant aspects of the matter before it": Peacock v Repatriation Commission [2007] FCAFC 156; (2007) 161 FCR 256 per Downes, Lander and Buchanan JJ (at [23]).
83 The Tribunal simply assumed that because the Minister or a delegate was satisfied that the respondent met the criteria for the grant of a SHEV, it necessarily followed that he continued to meet these criteria as at the date of the Tribunal's decision. It may theoretically have assumed (it is not known) that even if it had a power to grant a visa under s 65, it was not required to turn its own mind to that question. It was wrong to make those assumptions. In particular, it did not consider the national interest criterion in cl 790.227 of Sch 2 to the Migration Regulations 1994 (Cth).
84 The delegate's decision was a decision expressly stated to have been made under s 501, the Form of Application for Review and the identification of the decision sought to be reviewed and the reasons for the review application were all confined to issues arising under s 501 of the Act.
85 We respectfully adopt the primary judge's reasoning where his Honour said (at [41]-[44]):
41 …
That subsection, [s 501(1)], confers a discretion to refuse to grant a visa if the Minister is not satisfied that the person passes the character test. The "character test" is defined in s 501(6). Review of decisions under s 501 are permitted by s 500(1)(b) which provides as follows:
500 Review of decisions
(1) Applications may be made to the Administrative Appeals Tribunal for review of:
…
(b) decisions of a delegate of the Minister under section 501 (subject to subsection (4A)); or
…
Section 501(4A) identifies those decisions which are not reviewable.
42 The correct characterisation of the decision under review assumed significance, so both Senior Counsel submitted, because it played a large part in defining the ambit of the powers of the Tribunal when undertaking its review functions.
43 If the characterisation of the decision under review by the Minister be correct, there is considerable force in the argument that upon an application for review, the only decision which could be made in substitution for that of the delegate was a decision that could be made under s 501. Such an approach to the confined nature of the power vested in the Tribunal by s 501 would sit comfortably with the structure of the [Act], which provides for separate means of review in respect to separate kinds of decisions.
44 If the character of the decision under review advanced on behalf of [the respondent] be correct, the Tribunal would have power to make all such decisions as an original decision-maker could make when entertaining an application for a visa.
(Emphasis added.)
86 The better view is that the jurisdiction which is vested in the Tribunal by s 500(1)(b) of the Act is the jurisdiction to review "decisions … under section 501". It is that provision which "marks the boundaries of the AAT review": Frugtniet v Australian Securities and Investments Commission [2019] HCA 16; (2019) 266 CLR 250 per Bell, Gageler, Gordon and Edelman JJ (at [51]). When exercising the jurisdiction conferred by s 500(1)(b), the Tribunal was exercising the powers and discretions of the delegate as the original decision-maker, being powers confined by s 501(1). As the primary judge correctly observed, no decision was made by the delegate and no decision was sought to be reviewed by the respondent of any decision made (for example) pursuant to s 65 of the Act. Separate provision for Tribunal review of such decisions, it may be noted, is provided for in Pts 5 and 7 of the Act.
87 It follows that the Tribunal had no power to order the grant of a SHEV to the respondent. The only power that could be exercised by the Tribunal, given the statutory definition of the "character test" (s 501(6)), was the exercise of the discretion conferred by s 501(1) to "refuse to grant a visa…".