Consideration
70 When this matter was heard, judgment in an appeal against the first instance decision in Au had not been delivered.
71 In Au v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2022] FCAFC 125 (Perry, Derrington and O'Sullivan JJ), the Full Court considered an appeal from the primary judge who had dismissed an application for review of a decision of the Tribunal refusing to revoke the cancellation of a visa which had been cancelled pursuant to s 501(3A). The Tribunal had treated the question of whether there was "another reason" for the purposes of s 501CA(4)(b)(ii) as the exercise of a discretionary power to revoke or not revoke the cancellation decision. The Full Court held that the Tribunal had failed to address the correct question because it had approached the issue from the perspective of the exercise of a discretion whereas the weight of Full Court authority is that consideration of the criteria in the relevant Direction (Direction 79) called for an evaluative approach with there being no residual discretion: Au at [36]-[43] (Derrington J, Perry J agreeing); [82]-[98] (O'Sullivan J). See also Gaspar v Minister for Immigration and Border Protection [2016] FCA 1166; (2016) 153 ALD 338, [26]-[38] (North ACJ); Marzano v Minister for Immigration & Border Protection [2017] FCAFC 66; (2017) 250 FCR 548 (Collier J at [31], Logan and Murphy JJ agreeing); Viane v Minister for Immigration and Border Protection [2018] FCAFC 116, (2018) 263 FCR 531 (Colvin J at [73]); Bettencourt v Minister for Immigration, Citizenship, Migrant Services & Multicultural Affairs (2021) 287 FCR 294; [2021] FCAFC 172 (Burley, Colvin & Jackson JJ at [27]-[28]); Tohi v Minister for Immigration, Citizenship, Migration Services & Multicultural Affairs [2021] FCAFC 125 (Katzmann J at [3]; O'Bryan J at [100], Derrington J - contra at [51]); 285 FCR 187; Minister for Home Affairs v Buadromo [2018] FCAFC 151; (2018) 267 FCR 320 at [21] (Besanko, Barker and Bromwich JJ).
72 The Full Court in Au considered the error was material to the outcome because there was a realistic possibility of a different outcome. Accordingly, the Tribunal's error was affected by jurisdictional error.
73 Although dealing with Direction 79, the Full Court's observations apply with equal force in this matter.
74 There is a difference in the approach required for the purposes of considering an application under s 501CA(4)(b)(ii), as opposed to s 501(1).
75 Section 501(1) confers a broad discretionary power to refuse the grant of any visa "if the person does not satisfy the Minister that the person passes the character test". In Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs v EBD20 (2021) 287 FCR 581; [2021] FCAFC 179 (Perram, Thawley and Stewart JJ), the Full Court said at [28]:
Section 501(1) confers a discretionary power to refuse the grant of any visa "if the person does not satisfy the Minister that the person passes the character test". Section 501(1) does not expressly require any consideration to be given to whether a person is a "danger". Unlike s 36(1C), s 501(1) applies to all visas. The discretion in s 501(1) is intentionally broad. One of the matters the Minister typically, if not invariably, takes into account in considering the discretion is risk to the Australian community.
76 In Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs v BFW 20 by his Litigation Representative BFW20A (2020) 279 FCR 475; [2020] FCAFC 121 (Allsop CJ, Kenny, Besanko, Mortimer and Moshinsky JJ) the Full Court considered the question of whether the power in s 501 of the Act to refuse to grant a visa can apply to an application for a protection visa under the Act. The Full Court observed: at [129]-[130]:
It is important next to recognise that, while the character provisions in s 36 (and related definitions) and s 501 overlap, there is no necessary inconsistency between the provisions. The provisions operate in different ways: if an applicant fails to satisfy the character provisions in the protection visa criteria, the application for a protection visa must be refused; whereas, if an applicant fails to satisfy the character provisions in s 501, the application may be refused. Thus, there is no necessary inconsistency between the provisions.
The fact that the character provisions in the protection visa criteria lead to automatic refusal, while the character provisions in s 501 merely enliven a discretion to refuse, provides an intelligible basis for the presence of the (narrower) character provisions in the protection visa criteria… It is not to be assumed that, just because an applicant fails to satisfy the Minister that the applicant passes the character test, their application for a visa will be refused under s 501(1). The exercise of the discretion under s 501(1) depends on the facts and circumstances of the case, having regard to relevant considerations …
(Citations omitted)
77 Direction 90 is directed at both visa refusal and cancellation under s 501(1) and revocation of a mandatory cancellation of a visa under s 501CA of the Act. There is no reason why the evaluative process to be adopted by the decision-maker when considering the requirements of Direction 90 should be any different for the purposes of s 501, than for s 501CA. As I have noted, s 499(2A) provides that a person or body must comply with a direction given under s 499(1) of the Act.
78 The evaluative process required when addressing the matters identified in Direction 90, to which reference has been made in the authorities to which I have referred above, applies irrespective of whether the decision-maker is considering an application for review of the refusal of a visa under s 501(1) or whether there is "another reason" why the mandatory cancellation of a visa under s 501(3A) should be revoked under s 501CA(4)(b)(ii).
79 However, notwithstanding the evaluative approach is the same, as the Full Court observed in Au there is a distinction between embarking on the evaluative task in circumstances where a discretion is being exercised and one in which there is no discretion. The decision-maker in Au approached the consideration of the matters in Direction 79 from the perspective of exercising a discretion when there was none, thereby asking the wrong question.
80 The exercise of discretion was considered by the High Court in Norbis & Norbis [1986] HCA 17; (1986) 161 CLR 513 and Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission [2000] HCA 47; (2000) 203 CLR 194. In Norbis, Mason and Deane JJ considered appellate review of the exercise of judicial discretion in accordance with the principles in House v The King [1936] HCA 40; (1936) 55 CLR 499. As to what comprises a "discretion", their Honours said at 518:
The principles have been constantly reiterated and applied by this Court in the form in which they were expressed in House v. The King (1936) 55 CLR 499:
It is not enough that the judges composing the appellate court consider that, if they had been in the position of the primary judge, they would have taken a different course. It must appear that some error has been made in exercising the discretion. If the judge acts upon a wrong principle, if he allows extraneous or irrelevant matters to guide or affect him, if he mistakes the facts, if he does not take into account some material consideration, then his determination should be reviewed and the appellate court may exercise its own discretion in substitution for his if it has the materials for doing so. It may not appear how the primary judge has reached the result embodied in his order, but, if upon the facts it is unreasonable or plainly unjust, the appellate court may infer that in some way there has been a failure properly to exercise the discretion which the law reposes in the court of first instance. In such a case, although the nature of the error may not be discoverable, the exercise of the discretion is reviewed on the ground that a substantial wrong has in fact occurred.
The sense in which the terms "discretion" and "principle" are used in these remarks needs some explanation. "Discretion" signifies a number of different legal concepts: see, eg, the discussion in Pattenden, The Judge, Discretion, and the Criminal Trial (1982), pp. 3-10. Here the order is discretionary because it depends on the application of a very general standard - what is "just and equitable" - which calls for an overall assessment in the light of the factors mentioned in s 79(4), each of which in turn calls for an assessment of circumstances. Because these assessments call for value judgments in respect of which there is room for reasonable differences of opinion, no particular opinion being uniquely right, the making of the order involves the exercise of a judicial discretion. The contrast is with an order the making of which is dictated by the application of a fixed rule to the facts on which its operation depends.
81 In Coal and Allied Operations Pty Ltd at [19] Gleeson CJ, Gaudron and Hayne JJ said on the notion of what comprises "discretion":
"Discretion" is a notion that "signifies a number of different legal concepts". In general terms, it refers to a decision-making process in which "no one [consideration] and no combination of [considerations] is necessarily determinative of the result". Rather, the decision-maker is allowed some latitude as to the choice of the decision to be made. The latitude may be considerable as, for example, where the relevant considerations are confined only by the subject matter and object of the legislation which confers a discretion. On the other hand, it may be quite narrow where, for example, the decision-maker is required to make a particular decision if he or she forms a particular opinion or value judgement.
(Citations omitted)
82 Their Honours continued at [21]:
Because a decision-maker charged with the making of a discretionary decision has some latitude as to the decision to be made, the correctness of the decision can only be challenged by showing error in the decision-making process. And unless the relevant statute directs otherwise, it is only if there is error in that process that a discretionary decision can be set aside by an appellate tribunal.
83 These two authorities demonstrate that notwithstanding the requirement of an evaluative exercise dictated by the application of fixed criteria, there is a difference in approach when the decision-maker is considering the exercise of broad discretion as opposed to considering whether a particular decision must be reached following the evaluative exercise in question.
84 The consequence is that for the purposes of s 501(1) when carrying out the required evaluative exercise, the decision-maker does so against the background of the exercise of a broad discretion.