[2025] FCA 1223
General information, not legal advice.
Federal Court of Australia
2025-10-09
Anderson J
Original judgment source is linked above.
(1) Whether the Administrative Review Tribunal's use of the balance of probability standard of proof, instead of the use of a reasonable hypothesis, and its noncompliance with legislative requirements and established legal authorities, constituted an error of law?
(2) Did the Tribunal err in law by conflating the examination of a reasonable hypothesis of connection to service with the examination, application and determination of the relevant Statement of Principles for Parkinson's Disease?
(3) Has the Tribunal erred in law in its application of sections 120 (1) and (3) of the VE Act with the relevant Statement of Principles in determining whether the Applicant had provided a reasonable hypothesis linking the claimed Parkinson's Disease and his operational service or his eligible war service?
(4) Did the Tribunal err in law in its application of sections 120(1) and 120(3) with the Deledio's methodology in light of finding of facts concerning the cause of the Parkinson's Disease and the applicant's smoking habit?
(5) Did the Tribunal err in law its application of sections 120(1), 120(3), 120(6) and 120A of the Act concerning the disputed facts raised by the Applicant?
(6) Did the Tribunal err in law in application of the decisions in Bushell v Repatriation Commission [1992] HCA 47; (1992) 175 CLR 408 ('Bushell') and Byrnes v Repatriation Commission [1993] HCA 51; (1993) 177 CLR 564 ('Byrnes') in determining the existence of a reasonable hypothesis connecting the Applicant's Parkinson's Disease with the circumstances of the veteran's war service?
(7) Did the Tribunal err in law in the Application of section 119 of the Act to the facts of the case?
(8) Did the Tribunal give adequate and sufficient reasons as it was obliged to under section 43(28) of the AAT Act for its determination that the Applicant's Parkinson's Disease was not war-caused or service related?
[N]ot persuaded that the material points to or raises the hypothesis for which Mr Smith contends. While there is some material pointing to elements of the hypothesis, albeit attended by inconsistencies, the materials are not sufficient to raise important elements of the hypothesis.
Does the SoP uphold the hypothesis? - Deledio Step 3
(a) started smoking because he was stressed when undertaking night-watch duties;
(b) was bored, cigarettes were widely and cheaply available and most people on HMAS Hobart smoked; and
(c) was subjected to peer pressure to smoke and there was a smoking culture prevalent on HMAS Hobart at the time.
(a) smoking was allowed on board in "most areas except when refuelling or around the engine room" and that there was "no problem with smoking on deck": Transcript Appeal Book (AB) 418, lines 26-31;
(b) the applicant was asked the reason for smoking by his advocate. The applicant answered: "cruising up and down the gun line was sort of fairly mundane sort of work and you'd start up smoking just because everybody else smoked or pretty much everybody else": Transcript Appeal Book (AB) 419, lines 21-24;
(c) the applicant confirmed the statement given by Geoffrey Harris as to the applicant's smoking as a fair, accurate and truthful statement: Transcript AB 420, line 11. In this statement, Mr Harris puts forward that:
(i) before the applicant joined the Royal Australian Navy Mr Harris did not recall the applicant smoking;
(ii) Mr Harris observed the applicant smoking for the first time after he returned from serving in Vietnam, and considered his smoking was related to his service because "[in] the services smoking was an accepted practice, and Navy personnel were able to get cigarettes very cheaply on board";
(iii) after the applicant was discharged from the Navy in 1972, Mr Harris believed him to still be a regular smoker; and
(iv) Mr Harris' recollection is that the applicant stopped smoking in 1976 or 1977; and
(d) a direct answer was also given to the senior member's question of when he was smoking 20 cigarettes a day: "[p]robably during the Hobart deployment but exactly when I don't know": Transcript AB 425, lines 30-31.
The "whole of the material" may include material put forward by the applicant or by the commission itself. The commission must consider this material to determine if it raises an hypothesis connecting the veteran's condition with the relevant service and if any such hypothesis is reasonable: Byrnes v Repatriation Commission [1993] HCA 51; (1993) 177 CLR 564 at 569-70; [1993] HCA 51; 30 ALD 1 at 5; [1993] HCA 51; 116 ALR 210 at 214. As was emphasised in Deledio at FCR 98; ALD 217, there is no question of fact finding at this stage. Indeed, at this point the tribunal is entitled to make assumptions about the existence of facts: Repatriation Commission v Stares [1996] FCA 1510; (1996) 66 FCR 594 at 600-1; [1996] FCA 1510; 41 ALD 212. The decision whether the material enables the formation of a reasonable hypothesis must be made to the "reasonable satisfaction" of the commission: s 120(4) of the Act. If, having considered the whole of the material, the commission decides to its reasonable satisfaction that there is no such hypothesis then the application must fail: Deledio, points 1-3 at FCR 97; ALD 206.
In attempting to determine if the material before the commission raises an hypothesis connecting the veteran's condition with the particular service, and if any such hypothesis is reasonable, the tribunal was required to consider and analyse that material. This exercise is not concerned with the truth of the assertions in the material and should not be confused with an exercise in fact finding. The task is similar to scrutinising a pleading to determine if the elements of the alleged cause of action have been pleaded. A statement of claim may be struck out as failing to disclose a cause of action without any consideration of whether the facts pleaded can be substantiated. A hypothesis can be dismissed as not reasonable if the material before the commission does not raise the essential elements of the hypothesis.
As has been shown in a number of cases concerning ss 120(3) and 120A, the dividing line between impermissible fact finding and required assessment of all the material in the formation of an opinion as to whether a hypothesis is reasonable in connecting the injury, disease or death with the circumstances of service and as to whether a relevant SoP upholds the hypothesis is not necessarily easy to discern.
(a) At Reasons [36], the Tribunal found "there is scant material, including evidence given by Mr Smith, to support elements of his hypothesis".
(b) At Reasons [37], the Tribunal found in respect of the applicant's hypothesis, that it lacked supporting material and that the hypothesis was posited despite a conflict in the evidence about Mr Smith's smoking history.
(c) At Reasons [38], the Tribunal identified documentary evidence over a period of years of Mr Smith stating he never smoked, and on the other hand, Mr Smith gave and adduced evidence which supports the thesis, noting that there is no contemporaneous evidence, one way or the other.
(d) At Reasons [39]-[51], the Tribunal referred to conflicting evidence regarding Mr Smith's smoking and at Reasons [52] stated "unfortunately, Mr Smith became distressed and confused, and he was unable to complete his evidence. He was not cross-examined. Consequently, inconsistencies and other controversial aspects of his evidence, such as it was, have not been tested or clarified".
(e) At Reasons [53], the Tribunal states that the applicant's "account in 2023 is not plausible when it is considered against all the material which points to him never smoking. Furthermore, the Commission raises questions about the reliability of Mr Smith's untested evidence and argues it should not be accepted."
(f) At Reasons [54], the Tribunal states that it must consider all the material, without engaging in weighing evidence in order to find facts and determine if the hypothesis is "fairly raised" by the material, albeit the facts on which it is raised are not yet proved.
[W]hen all the material in evidence is considered, [the Tribunal is] not persuaded the material points to or raises the hypothesis for which Mr Smith contends. While there is some material pointing to elements of the hypothesis, albeit attended by inconsistencies, the materials are not sufficient to raise important elements of the hypothesis. The key causal element of the hypothesis lacks supporting material.
(a) the Tribunal, at this point, should have accepted there was a hypothesis put forward by the applicant, if the Tribunal had not engaged in fact-finding;
(b) the Tribunal should then have asked itself whether that hypothesis was supported by the SoP;
(c) instead, the Tribunal conflated steps (a) and (b) by finding that there was no reasonable hypothesis supported by the SoP, by impermissibly engaging in fact-finding to draw the conclusion that the hypothesis required by the SoP was not made out.
(a) he started smoking because he was stressed when undertaking night watch duties;
(b) he was bored, cigarettes were widely and cheaply available and most people on HMAS Hobart smoked; and
(c) Mr Smith was subjected to peer pressure to smoke and there was a smoking culture prevalent on HMAS Hobart at the time.
In order to raise the hypothesis of connection, it is not enough for the material to point to the setting in which Mr Smith is alleged to have commenced smoking without pointing to the contributory cause of this event. More is required. Without material pointing to or raising a causal connection between the circumstances Mr Smith identified on board HMAS Hobart and his alleged smoking habit, the hypothesis lacks supporting material.
The "setting" in which Mr Smith commenced smoking was the conditions that existed on HMAS Hobart. That was Mr Smith's hypothesis.
That difference is reflected in the use of the terms "points to" and "raise" in the first and second Deledio steps. An hypothesis is neither pointed to, nor raised, unless it emerges both obviously and directly from the evidence in question. If it is necessary to couple a fertile imagination with a selective rendition of the evidence in order to create the hypothesis, it is not an hypothesis of the kind which the Full Court in Deledio had in mind.
Even though there is material pointing to Mr Smith having a history of a 'regular smoking habit', albeit not entirely clear, and without proof of facts, the material does not raise or point to the causal link between his alleged regular smoking habit and the circumstances of his operational service. The gap cannot be bridged by speculation or assumptions, or by calling upon the procedural latitude which is to be afforded under s 119(1)F(g) and (h) of the Act.
I certify that the preceding sixty-nine (69) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Anderson.
Smith
Repatriation Commission [2025] FCA 1223
Bull v Repatriation Commission (2001) 66 ALD 271; [2001] FCA 1832
Bushell v Repatriation Commission [1992] HCA 47; (1992) 175 CLR 408
Byrnes v Repatriation Commission [1993] HCA 51; (1993) 177 CLR 564
Chaplin v Secretary, Dept of Social Services (2025) 187 ALD 1; [2025] FCAFC 89
Collins v Administrative Appeals Tribunal (2007) 163 FCR 35; [2007] FCAFC 111
Commissioner of Taxation v Patrix Prestige Pty Ltd (2024) 306 FCR 56; [2024] FCAFC 148
Elliott v Repatriation Commission (2002) 73 ALD 377; [2002] FCA 26
Ellis v Repatriation Commission (2014) 142 ALD 352; [2014] FCA 847
Forrester v Repatriation Commission [2013] FCA 898
Hill v Repatriation Commission (2005) 85 ALD 1; [2005] FCAFC 23
PYYV v Minister for Immigration and Multicultural Affairs [2025] FCA 1113
Repatriation Commission v Deledio [1998] FCA 391; (1998) 83 FCR 82
Woodward v Repatriation Commission (2003) 131 FCR 473; [2003] FCAFC 160
(1992) 175 CLR 408
(1993) 177 CLR 564
(2007) 163 FCR 35
(2024) 306 FCR 56
(1987) 16 FCR 517
(1998) 83 FCR 82
(2003) 131 FCR 473
(1996) 66 FCR 594