Relevance of the decision in Makasa
37 During the course of the hearing, the Court raised with Counsel for the Minister the relevance and applicability of the recent decision of the High Court in Makasa. Although that decision concerned the exercise of power under s 501(2) of the Act, it is not wholly irrelevant to the present matter. At the conclusion of the hearing, the parties were invited to make written submissions with respect to this decision. Counsel for the Minister duly supplied the Court with helpful and balanced submissions. Mr Zyambo did not do so, although there is no criticism of him on that account.
38 In Makasa, the Tribunal had set aside a prior decision of the Minister's delegate to cancel the visa of Mr Makasa pursuant to s 501(2) (on the basis that it was reasonably suspected that he did not pass the character test in s 501(6)) and substituted a decision that his visa should not be cancelled. Some six years later, the Minister purported to re-exercise the power to cancel the visa pursuant to s 501(2) on the same basis. In each case, the foundation for the suspicion enlivening the power pursuant to s 501(2) was the same instance of Mr Makasa being sentenced to a term of imprisonment of 12 months or more (s 501(7)(c)). The question before the High Court was whether the Minister could rely upon evidence as establishing that suspicion after an earlier cancellation of the visa pursuant to the same provision and relying on precisely the same evidence had been set aside by the Tribunal and a decision that the visa should not be cancelled substituted in its place.
39 After considering the relevant provisions of the Act, as well as the operation of s 33(1) of the Acts Interpretation Act 1901 (Cth), the High Court concluded that the Minister could not re-exercise the power under s 501(2) based on the same evidence. However, the Court did not conclude that where new factors arose they, alone or together with past matters, may not legitimately have a cumulative impact on the conclusion as to whether a visa holder does or does not pass a character test. The Court said (at [48] and [49]):
48 Turning then to the scheme of the Act and the AAT Act, it is important at the outset to recognise that nothing in the legislative scheme indicates an intention to displace the application of s 33(1) of the AI Act to the power conferred by s 501(2) of the Act to the extent that subsequent events or further information not previously before the Minister or a delegate provide a different factual basis upon which to form a reasonable suspicion that a visa holder does not pass the character test. A new sentence of imprisonment amounting by operation of s 501(7)(c), or contributing by operation of s 501(7)(d), to the coming into existence of a new substantial criminal record within the meaning of s 501(6)(a) is an example. A new conviction providing a reasonable basis for making a revised assessment of the visa holder's "character" − his or her "enduring moral qualities" − under s 501(6)(c) is another example. Section 501(6)(c) was not argued to be engaged in this appeal.
49 To the extent that the scheme of the Act and the AAT Act exhibit an intention contrary to the application of s 33(1) of the AI Act to the power conferred by s 501(2) of the Act, absent subsequent events or further information providing a different factual basis for the formation of a reasonable suspicion that a visa holder does not pass the character test, such an intention emerges by reference to two principal considerations. One is narrower in its ambit and arises from the generic operation of the AAT Act; the other is broader in its ambit and specific to the relationship between s 501(2) and s 501A of the Act.
(Footnotes omitted).
40 The Court thereafter considered what might be the unusual operation of the Act were the Minister to be entitled to make the decision to cancel a visa on precisely the same grounds as a decision which was previously revoked by the Tribunal, observing (at [50] and [51]):
50 Looking to the generic operation of the AAT Act, an intention not to allow further re-exercise of a power by a primary decision-maker after re-exercise of that power by the AAT under s 43(1)(b) or (c)(i) of the AAT Act on review of an earlier exercise of power by the primary decision-maker is inherent in the nature of the merits review function for which it is the design of s 43 of the AAT Act to make provision. The merits review function of the AAT is "to stand in the shoes of the decision-maker whose decision is under review so as to determine for itself on the material before it the decision which can, and which it considers should, be made in the exercise of the power or powers conferred on the primary decision-maker for the purpose of making the decision under review". The function of the AAT, in other words, is "to do over again" that which was done by the primary decision-maker. The function would be reduced to a mockery were the subject-matter of the decision made by the AAT on review able to be revisited by the primary decision-maker in the unqualified re-exercise of the same statutory power already re-exercised by the AAT in the conduct of the review.
51 The object of s 43(6) of the AAT Act, in deeming a decision made by the AAT under s 43(1)(b) or (c)(i) in variation of or substitution for the decision under review to be a decision of the primary decision-maker, is to bring finality to the administrative decision-making process. Like any other legal fiction, the deeming effected by s 43(6) of the AAT Act cannot be taken to have a legal operation beyond that required to achieve the object of its enactment. Section 43(6) cannot be taken so far as to be read as requiring an exercise of power by the AAT to be treated as no more than an exercise of power by the primary decision-maker which the primary decision-maker is able by operation of s 33(1) of the AI Act simply to re-exercise.
(Footnotes omitted).
41 The Court then considered powers conferred by s 501A of the Act, powers which are in terms similar to ss 501(2) and 501(3) and which specifically permit the Minister to override the Tribunal's decision and cancel a visa. Significantly, the Court observed that the specific powers conferred by s 501A could be exercised by the Minister "without need for any change to the factual basis on which the delegate or the [Tribunal] formed a reasonable suspicion" which was the foundation for the previous decision: at [53]. Finally, the Court observed that:
55 Hence, s 501A of the Act must be read as manifesting a legislative intention to exclude re-exercise by the Minister or a delegate of the more general power conferred by s 501(2) of the Act, read in light of s 33(1) of the AI Act, to revisit and reverse a previous decision of a delegate not to cancel a visa made in the exercise of the power conferred by s 501(2) where there has been no change to the factual basis on which the previous decision-maker, be it the Minister or a delegate or the AAT, formed a reasonable suspicion that the visa holder did not pass the character test in making the previous decision not to cancel a visa.
42 When read literally, the observations of the High Court in relation to s 501(2) might be regarded as applying to the circumstances of this case and the power in s 501(3A). Here, the foundation for the state of satisfaction that Mr Zyambo did not pass the character test was his sentence in 2006. However, that was twice previously relied upon as basis for the formation of the same state of satisfaction and, in part, for the exercise of the power to cancel Mr Zyambo's visa pursuant to s 501(3A). On each occasion, the cancellation was revoked, though not by the Tribunal. If the decision in Makasa is to the effect that material establishing a particular state of mind in relation to the character test cannot be relied on again once an earlier cancellation based on that same material and state of mind has been revoked or set aside, it may mean in this case that there was no valid cancellation of Mr Zyambo's visa.
43 However, the structure and operation of s 501(3A), being the relevant power in the present case, is substantially different to that of s 501(2), the power considered in Makasa. The essential difference is that s 501(3A) requires the existence of two matters before the Minister is compelled to cancel a visa. The first is the subjective jurisdictional fact that the Minister is satisfied that the visa holder does not pass the character test because they have a substantial criminal record (s 501(7)(a), (b) or (c)) or have committed a sexual offence against a child (s 501(7)(e)). The second is that the person is serving a term of imprisonment on a full time basis. It follows that the mere formation of the state of satisfaction as to the failure to pass the character test is not sufficient to enliven the power to cancel. It also means that the matters in s 501(3A)(a) and (b) may be satisfied on different occasions. That is to say, as were the circumstances in this case, satisfaction that a person does not pass the character test by reason of the matters in s 501(3A)(a) may arise at one time, but satisfaction of s 501(3A)(b) may arise on multiple later occasions by reason of imprisonment for other offences. It may also arise at the same time by reason of imprisonment for the same offences. So long as both pre-conditions are satisfied, the power is enlivened. Moreover, every time they are satisfied, the obligation on the Minister to cancel the visa arises, subject to a limitation discussed below.
44 Here, although the Minister's satisfaction that Mr Zyambo did not pass the character test for the purposes of s 501(3A)(a) was founded on his sentence in 2006, it was his incarceration for five months in 2019 that completed the circumstances enlivening the Minister's obligation to cancel. That remained the case even though Mr Zyambo's failure to pass the character test by reason of his sentence in 2006 had, together with earlier terms of imprisonment, caused the earlier cancellations of his visa in 2015 and again in 2018 (which were subsequently revoked).
45 It follows that the decision in Makasa cannot be directly applied to s 501(3A), at least to the extent to which its focus is on reaching a particular state of mind in respect of passing the character test. Perhaps the point in Makasa might be reformulated to say that the circumstances which enliven the Minister's power to cancel a visa are spent once a decision based on those circumstances has been revoked or set aside by the Tribunal. That is not to say that new matters, taken with some or all of those prior circumstances, cannot give rise to a new foundation for the exercise of power, but the Minister may not rely on precisely the same circumstances on the second occasion.
46 In relation to s 501(3A), it would follow that the Minister could not rely upon the same factors as satisfying s 501(3A)(a) and (b) if he had previously relied upon them to cancel a visa and the Tribunal had then revoked that cancellation. That was not the position in the present case. Here, the matters which enlivened the power to cancel were the delegate's satisfaction that Mr Zyambo did not pass the character test by reason of his sentence in 2006 (s 501(3A)(a)) and his service of a subsequent sentence of imprisonment in 2019 (s 501(3A)(b)). This combination of matters had not been relied upon previously to cancel the visa.
47 It follows that the Minister's careful and thoughtful submissions on this issue should be accepted. The decision in Makasa has no application to the operation of s 501(3A) in the circumstances of this case.