Ground 1 - Misconstruction of the public interest condition: s 34(2)(c)
41 Ground 1 concerns the public interest condition in s 34(2)(c) of the Citizenship Act, of which the Minister must be satisfied before the power to revoke a person's citizenship may be exercised.
42 As noted above, ground 1 corresponds to grounds 4 and 5 of the Minister's appeal below.
43 Significantly, the appellant conceded, both before the primary judge and in this Court, that the Tribunal had erred in law and that on the proper construction of the public interest condition there is no distinction between whether it is contrary to the public interest for a person to remain an Australian citizen and whether it is in the public interest for a person no longer to remain an Australian citizen. Ground 1 is limited to the appellant's contention that the Tribunal's error of law was not material.
44 The appellant's concession that the Tribunal had erred in law in its approach to the public interest condition was correctly made. In TRHL at [41], Gilmour J held that the two concepts were synonymous:
In any event, in my opinion, in this statutory context, the expression of the public interest requirement under s 34(2)(c) as ultimately put on behalf of the Minister before the Tribunal as being "in the public interest that the appellant not continue to be an Australian citizen" is synonymous with the statutory language that "it would be contrary to the public interest for the appellant to remain an Australian citizen."
45 As the primary judge observed, the purported distinction is a linguistic distinction of no practical significance or importance which had been correctly rejected for that reason in TRHL.
46 The primary judge was correct to find that the false distinction drawn by the Tribunal was material to its reasoning for two reasons. First, the Tribunal expressly stated that the distinction was "significant and critical", and "[i]t followed that the Tribunal's reasoning, and the manner in which it considered the respective submissions, must have been imbued with this characterisation". Secondly, the Tribunal excluded from its consideration matters it thought might only bear on what was "in" the public interest. As his Honour remarked, so much is evident from the Tribunal's failure to take into account the Minister's submissions about deterrence, its incorrect contextualisation of the Minister's submissions about the integrity of the migration and citizenship regime, and its evaluation of the interests of the Australian community and the appellant's prospect of re-offending.
47 For completeness, we go on to address the issue of materiality raised by the appellant, although legal error in the misconstruction of s 34(2) is sufficient. In the context of an appeal from the Tribunal on a question of law, that issue can only be relevant to the question of whether relief should be refused in the exercise of the Court's discretion.
48 The appellant submitted that, notwithstanding the Tribunal's error in seizing on what it considered to be a "significant and critical" difference, the Tribunal did, in substance and in fact, address the statutory test. The appellant did not, engage however, with the impact that the false distinction had on the Tribunal's reasoning which was a key plank of the primary judge's conclusion on materiality.
49 Before further addressing the appellant's submissions, we note that both the appellant and the Minister contended that s 34(2) in its correct construction involved the exercise of a residual discretion if the conditions in ss 34(1)(a) to (c) were met. This is consistent with the approach taken by the Full Court in Egan, a decision handed down on the day the present appeal was heard.
50 Next, the appellant submitted that the Tribunal's error of law was not material because the Tribunal lawfully exercised its discretion not to revoke the appellant's Australian citizenship on the premise that s 34(2)(c) was met, and in any event that the Tribunal's analysis of whether it was satisfied of the matter in s 34(2)(c) was expressed "in the alternative". By this submission, the appellant appeared to contend that the residual discretion to revoke citizenship can be exercised in a way that is not tethered to the satisfaction of the anterior public interest condition.
51 The appellant's submissions are rejected for the following reasons.
52 In construing s 34(2) as involving the exercise of a residual discretionary power, the Minister draws an analogy between the structure of s 34(2) of the Citizenship Act and ss 501(3), 501A(2), 501A(3) of the Migration Act (the Migration Act provisions). Each of the Migration Act provisions confers a power on the Minister to do a thing (visa refusal or cancellation) if, inter alia, the Minister is satisfied that the thing "is in the national interest": Migration Act, ss 501(3)(d), 501A(2)(e), 501A(3)(d). The Migration Act provisions have been construed as conferring a discretionary power on the Minister the exercise of which is conditioned inter alia on the Minister forming an evaluative judgment that the thing (visa refusal or cancellation) "is in the national interest". Similarly, s 34(2) confers a discretionary power on the Minister to do a thing (revoke citizenship) the exercise of which is conditioned, inter alia, on forming an evaluative judgment that not to do the thing would permit a situation to persist (continuance of the person's Australian citizenship) that is contrary to the public interest.
53 In Gbojueh v Minister for Immigration and Citizenship [2012] FCA 288; (2012) 202 FCR 417 at 421 [14], Bromberg J observed in respect of s 501A(2) of the Migration Act that:
The drafting of s 501A(2) utilises a well recognised format, requiring the satisfaction of prerequisite conditions (set out in s 501A(2)(c), (d) and (e)) before the residual discretion is enlivened. One of the preconditions to the exercise of the discretion is the Minister's satisfaction that the cancellation of a visa is in the national interest. The availability of the Minister's discretionary power to set aside the original decision and to refuse to grant a visa or cancel a visa that has already been granted, is only enlivened when the Minister is satisfied of each of the preconditions to the exercise of the power. The question whether the discretion should be exercised does not arise until the Minister is satisfied that each of the preconditions are met, including that cancellation would be in the national interest. Decision-making in accordance with the structure of the section requires the Minister to consider the national interest precondition before considering the exercise of the residual discretion. A two step process is necessarily required of the Minister.
54 In BFM16 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2021] FCA 312 at [147], Farrell J identified the following propositions in respect of the decision-making process engaged by s 501A(2) of the Migration Act:
(1) In determining whether or not he or she is satisfied that refusal or cancellation is in the national interest for the purposes of s 501A(2)(e), the Minister is not exercising a discretionary power, but is rather forming an evaluative judgment. That satisfaction is the starting point for the consideration of the exercise of discretion in s 501A(2)(e): [CWY20 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2020] FCA 1855] at [79], relying on [Graham v Minister for Immigration and Border Protection [2017] HCA 33; (2017) 263 CLR 1] at [57]-[58].
(2) It is important that each stage of the decision-making process (which includes the separate and distinct pre-conditions in s 501A(2)(c) to (e)) be conducted reasonably and on a proper legal basis, with a correct understanding of the meaning and application of relevant statutory concepts at each stage. The need for the Minister to adopt and apply a correct understanding of the national interest is all the more important because considerable weight will usually be given to the assessment of the national interest when that matter comes to be weighed against other considerations which are relevant in the later stage of the decision-making process, being the residual discretion: CWY20 at [137].
55 The legislative provision in issue in Graham was s 501(3) of the Migration Act. The legislative provision in issue in CWY20 was s 501A(3) of the Migration Act.
56 In Fastbet Investments Pty Ltd v Deputy Commissioner of Taxation (No 5) [2019] FCA 2073; (2019) 167 ALD 492 at 514 [71], Derrington J observed in the context of the exercise of the discretion in s 255-100(1) of Schedule 1 of the Taxation Administration Act 1953 (Cth) that "the satisfaction of the jurisdictional fact goes some considerable way to influencing the exercise of the discretion"; once the jurisdictional fact exists "there must necessarily be some inclination towards exercising the discretion".
57 The similarities in the structure of s 34(2) of the Citizenship Act and s 501A(2) of the Migration Act are readily apparent. As stated at [52] above, s 34(2) is structured to confer a discretionary power on the Minister to revoke the citizenship of a person the exercise of which is conditioned on the three matters identified in ss 34(2)(a) to (c). First, the revocation must be directed to a person who obtained citizenship by conferral: s 34(2)(a). Second, the person must have been convicted of an offence of a type described in ss 34(b)(i) to (iv). Third, the Minister must be satisfied that it would be contrary to the public interest for the person to remain an Australian citizen: s 34(2)(c). The residual discretion in s 34(2) is only enlivened after all the conditions in ss 34(2)(a) to (c) are met.
58 It was common ground that the conditions in ss 34(2)(a) and (b) were met. The Tribunal erred in law in construing what was necessary to make the evaluative judgment required by the public interest condition. The residual discretion conferred by s 34(2) cannot lawfully be exercised separately to the formation of the requisite state of mind about the public interest. In other words, the Tribunal had to form a state of satisfaction about the public interest before exercising the discretion: CWY20 at [79].
59 In the present context, once the administrative decision-maker (the Minister or the Tribunal as the case may be) is satisfied that it would be contrary to the public interest for the person to remain an Australian citizen, there is likely to be some inclination to revoke the person's citizenship. For this reason, it was not open to the Tribunal to exercise the residual discretion under s 34(2) on the abstract assumption that the public interest condition was met without actually forming the state of mind to which that condition is directed.
60 If the appellant's contention in respect of the materiality of the legal error is understood as going to the discretion to grant or refuse relief, then it is our view that the error was material and relief should be granted. Had the Tribunal's assessment in respect of the public interest condition not been distorted by its misconstruction of s 34(2), a different decision could have been made. No error has been shown in the approach taken by the primary judge. Ground 1 of the appeal is dismissed.
61 This is not an appeal where the appellant may rely on alternative path of reasoning to support the Tribunal's purported exercise of the residual discretion. The dismissal of ground 1 requires the matter to be remitted to the Tribunal to be determined in accordance with the law.