1512041 (Migration)

This matter concerned an application for review of a decision to refuse subclass 892 visas. The applicants, Mr and Mrs Alcock, nominated All Rice Co Pty Ltd as their main business in Australia. The primary criterion under consideration was cl.892.213(2) of the Migration Regulations, which requires the applicant's main business to have an annual turnover of at least AUD200,000 in the 12 months immediately preceding the application.

The legal issue before the Tribunal was to determine the annual turnover of All Rice Co Pty Ltd, specifically whether certain transactions with a company named IIMS constituted "turnover" for the purposes of the visa criterion. The Tribunal considered the ordinary meaning of "turnover" in the context of business activity, drawing on relevant case law, including decisions in *Cheng* and *He*. The Tribunal also had regard to departmental policy guidelines regarding turnover.

The Tribunal found that All Rice Co Pty Ltd acted as an intermediary between suppliers and IIMS for specialised goods. All Rice was invoiced by suppliers, paid the suppliers, and then invoiced IIMS for the same amounts. Crucially, IIMS ordered the goods directly from suppliers and arranged for their direct delivery, meaning All Rice did not take possession of, insure, or source the goods. The Tribunal concluded that these transactions were artificial and not in the ordinary course of All Rice's business, as the company merely served as a conduit. The Tribunal affirmed the decision to refuse the visas, finding that the applicants had not met the turnover requirement.