ALI NOOR HOLDINGS PTY LTD (Migration) - [2023] AATA 1362

ALI NOOR HOLDINGS PTY LTD (Migration) [2023] AATA 1362 (15 May 2023)
DECISION RECORD
DIVISION:Migration & Refugee Division
APPLICANT:  ALI NOOR HOLDINGS PTY LTD
REPRESENTATIVE:  Mrs Vaneet Kaur Chadha (MARN: 1686379)
CASE NUMBER:  1928489
HOME AFFAIRS REFERENCE(S):          BCC2019/4193539
MEMBER:Karen McNamara
DATE:15 May 2023
PLACE OF DECISION:  Sydney
DECISION:The Tribunal affirms the decision under review to refuse the nomination.

Statement made on 15 May 2023 at 8:55am
CATCHWORDS
MIGRATION – application for approval of nomination of position – direct entry stream – financial capacity to employ nominee for 2 years – loss in financial year before application made and wages expenditure does not appear to correspond to number of employees – no response to tribunal’s invitation to provide updated and current information and loss of right to appear – decision under review affirmed
LEGISLATION
Migration Act 1958 (Cth), ss 359(2), 359C(1), 360(3), 363(1)(b), 363A
Migration Regulations 1994 (Cth), r 5.19(4), (9)(e), (f)
CASES
Hasran v MIAC [2010] FCAFC 40; (2010) 183 FCR 413
Huo v MIMA [2002] FCA 617
Kaur v MIBP [2014] FCA 915
Manna v MIAC [2012] FMCA 28
MIAC v Li [2013] HCA 18
MIBP v Singh [2014] FCAFC 1
Yang v MIAC [2010] FMCA 890
STATEMENT OF DECISION AND REASONS
APPLICATION FOR REVIEW

This is an application for review of a decision made by a delegate of the Minister for Home Affairs on 20 September 2019, to reject the application by Ali Noor Holdings Pty Ltd (the applicant) for approval of the nomination of a position under reg 5.19 of the Migration Regulations 1994 (Cth) (the Regulations).
The applicant applied for approval on 23 August 2019. The requirements for the approval of the nomination of a position in Australia are found in reg 5.19 of the Regulations, which contains general requirements for approval and additional requirements for approval set out in three alternative streams: a Temporary Residence Transition stream, a Direct Entry stream and a Labour Agreement stream. If the application meets the requirements for approval, then the application must be approved: reg 5.19(3)(a). If any of the requirements are not met, then the application must be refused: reg 5.19(3)(b).
In this case, the applicant has applied for approval of a nomination, seeking to satisfy the criteria in the Direct Entry stream.
The primary decision record shows that the delegate refused the application because the applicant did not meet regulation 5.19(9)(e). The delegate found that the application for approval did not demonstrate the business had the financial capacity to sustain the nominated salary and therefore was not in a financially viable position, to employ the identified person in the position on a full‑time basis, for at least 2 years.
The applicant lodged an application for review with the Tribunal on 9 October 2019. The review application was accompanied by a copy of the delegate’s decision and included the following:
·Bank statements May 2019
·Screenshot ASIC search
·Gas account June 2019
·Financial Statements 30 June 2018
·Submission by Director dated 11 August 2019…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2023] AATA 1362
Decision Date: 15 May 2023

CaseChat Overview and Summary

This matter concerned an application by ALI NOOR HOLDINGS PTY LTD for approval of a nomination of a position under the Direct Entry stream of the Employer Nomination Scheme (Subclass 186) visa. The primary issue before the Tribunal was whether the applicant met the general requirements for approval of a nomination under regulation 5.19(4) and the specific requirements for the Direct Entry stream under regulation 5.19(9) of the Migration Regulations 1994.

The Tribunal was required to determine if the applicant had demonstrated sufficient financial capacity to employ the nominated person on a full-time basis for at least two years, as stipulated by regulation 5.19(9)(e). This involved assessing the financial statements provided, which indicated a loss and negative business equity for the financial year ending 30 June 2018, and a seemingly disproportionate wages expenditure relative to the number of employees. Furthermore, the Tribunal had to consider whether the applicant had provided updated and current information to demonstrate a stronger financial position, particularly in light of the Tribunal's invitation to do so.

The Tribunal affirmed the delegate's decision to refuse the nomination. The delegate had noted concerns regarding the applicant's financial capacity, citing the loss in the 2018 financial year, negative business equity, and an apparent discrepancy between wages expenditure and the number of employees. Crucially, the applicant failed to respond to the Tribunal's invitation to provide updated financial information, including tax returns, business activity statements, and recent financial statements. In the absence of this information, the Tribunal could not be satisfied that the applicant met the requirements of regulation 5.19(9)(e) or other relevant provisions, leading to the conclusion that the nomination could not be approved.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

For the following reasons, the Tribunal has decided to affirm the decision under review to refuse the nomination.CONSIDERATION OF CLAIMS AND EVIDENCE The issue in this case is whether the applicant meets the general requirements for approval of the nomination set out in reg 5.19(4) and the stream specific requirements set out in reg 5.19(9), which are extracted in the attachment to this decision. For the nomination to be approved, all the requirements must be met.Future employment – regs 5.19(9)(e), (f) and (g) Regulations 5.19(9)(e), (f) and (g) contain requirements relating to the future employment of the identified person. Regulation 5.19(9)(e) requires that the identified person will be employed on a full-time basis in the position for at least 2 years. On 20 September 2019, the delegate refused the application because the applicant did not meet regulation 5.19(9)(e). The delegate in their decision noted ‘… The applicant has indicated on the application form that they intend to provide the nominee with full-time employment as a Cook with a base salary of $55,500. In order to assist in making a determination regarding the nominator’s financial capacity to comply with the requirement of providing full time employment for at least two years of full-time employment, I have carefully considered the financial documents provided in support of this nomination. The financial statements for the year ended 30 June 2018 indicates a loss of $5,915.98. This same financial statement shows the business equity as (negative)$5,915.98.It is noted that the wages expenditure for year ending 30 June 2018 is shown as $79,708 which appears to not correspond to the total number (of seven) employees as shown on the nomination application and organisational chart Further, the business bank statement (from 17 May 2019 to 18 June 2019) provided states that the closing balance of $3,917.74.The nominator has not provided further verifiable information to demonstrate that the business is working towards a stronger financial position to sustain the full time wages offered to the nominated position as well as the owner and all other staff members as listed on the organisational chart. As a result, I am unable to conclude that the nominator is in a financial viable position to meet the financial sponsorship obligations of this program.’ On 13 April 2023, the Tribunal invited the applicant to provide information including lodged tax returns for the last two financial years, business activity statements and financial statements for the most recent two financial years. As noted above, no response has been received from the applicant to the Tribunal’s invitation to provide information. As the applicant failed to respond to the Tribunal’s request to provide further information pursuant to s.359(2) of the Act, the applicant has failed to provide any updated information to determine whether the applicant meets the requirements of rr.5.19(4) and (9). In particular, the Tribunal notes that it does not have current information before it, on which to assess whether the applicant meets r.5.19(9)(e) including contemporary information regarding the business and its financial profile.

Decision

Reasons for decision

For these reasons the Tribunal is not satisfied that the applicant meets the requirements of reg 5.19. Accordingly, reg 5.19(3)(b) requires that the nomination must be refused. The decision under review must be affirmed.DECISION The Tribunal affirms the decision under review to refuse the nomination.Karen McNamaraMemberAttachment – extracts from the migration regulations 19945.19Approval of nominated positions—Subclass 186 (Employer Nomination Scheme) visa and Subclass 187 (Regional Sponsored Migration Scheme) visaApplication(1)A person (the nominator) (including a partnership or unincorporated association) may apply to the Minister for approval of the nomination of a position in Australia.(2)The application must:(a)be made in accordance with approved form 1395 (Internet); and(b)identify the position; and(c)identify a person (the identified person) in relation to the position; and(d)identify an occupation in relation to the position; and(e)identify the subclass and stream to which the nomination relates, which must be one of the following:(i)a Subclass 186 (Employer Nomination Scheme) visa in the Temporary Residence Transition stream;(ii)a Subclass 187 (Regional Sponsored Migration Scheme) visa in the Temporary Residence Transition stream;(iii)a Subclass 186 (Employer Nomination Scheme) visa in the Direct Entry stream;(iv)Subclass 187 (Regional Sponsored Migration Scheme) visa in the Direct Entry stream;(v)a Subclass 186 (Employer Nomination Scheme) visa in the Labour Agreement stream; and(f)be accompanied by the fee mentioned in regulation 5.37; and(fa)be accompanied by any nomination training contribution charge the nominator is liable to pay in relation to the nomination; and(fb)identify the annual turnover (within the meaning of the Migration (Skilling Australians Fund) Charges Regulations 2018) for the nomination; and(g)include a written certification by the nominator stating whether or not the nominator has engaged in conduct, in relation to the nomination, that constitutes a contravention of subsection 245AR(1) of the Act.Approval of nomination(3)The Minister must, in writing:(a)approve the nomination if the Minister is satisfied that the requirements set out in subregulation (4) are met; or(b)otherwise—refuse to approve the nomination.Requirements for approval—general(4)The requirements to be met for the nomination to be approved are as follows:(a)the application is made in accordance with subregulation (2);(b)either:(i)there is no adverse information known to Immigration about the nominator or a person associated with the nominator; or(ii)it is reasonable to disregard any adverse information known to Immigration about the nominator or a person associated with the nominator;(c)if it is mandatory, in the State or Territory in which the position is located, for a person to:(i)hold a licence of a particular kind; or(ii)hold registration of a particular kind; or(iii)be a member (or a member of a particular kind) of a particular professional body;to perform tasks of the kind to be performed in the occupation, the identified person is, or is eligible to become, the holder of the licence, the holder of the registration, or a member of the body, at the time of application;(d)the nominator has a satisfactory record of compliance with the laws of the Commonwealth, and of each State or Territory in which the nominator operates a business and employs employees in the business, relating to employment;(da)any debt due by the nominator as mentioned in section 140ZO of the Act (recovery of nomination training contribution charge and late payment penalty) has been paid in full;(e)if the nomination relates to a visa in a Temporary Residence Transition stream—the requirements set out in subregulation (5) are met;(f)if the nomination relates to a visa in a Direct Entry stream—the requirements set out in subregulation (9) are met;(g)if the nomination relates to a visa in a Labour Agreement stream—the requirements set out in subregulation (14) are met.…Direct Entry stream—additional requirements for approval(9)If the nomination relates to a visa in a Direct Entry stream, the following requirements must also be met:(a)the nominator is actively and lawfully operating a business in Australia;(b)if the nominator’s business activities include activities related to the hiring of labour to other unrelated businesses—the position is within the business activities of the nominator and not for hire to other unrelated businesses;(c)the application identifies a need for the identified person to be employed in the position, under the direct control of the nominator;(d)there is a genuine need for the identified person to be employed in the position, under the direct control of the nominator;(e)the identified person will be employed on a full‑time basis in the position for at least 2 years;(f)the terms and conditions of the identified person’s employment will not include an express exclusion of the possibility of extending the period of employment;(g)the nominator’s business has the capacity to employ the identified person for at least 2 years and to pay the person at least the annual market salary rate for the occupation each year;(h)the requirements set out in subregulation 2.72(15) are met, applying subregulations 2.72(15) and (16) as if:(i)paragraph 2.72(15)(a) did not apply; and(ii)references to the nominee were references to the identified person; and(iii)references to the person were references to the nominator;(i)either:(i)there is no information known to Immigration that indicates that the employment conditions (other than in relation to earnings) that will apply to the identified person are less favourable than those that apply, or would apply, to an Australian citizen or an Australian permanent resident performing equivalent work at the same location; or(ii)it is reasonable to disregard any such information;(j)the requirements set out in subregulation (10) or (12) are met.Occupations for the Subclass 186 (Employer Nomination Scheme) visa in the Direct Entry stream(10)The requirements of this subregulation are as follows:(a)the tasks to be performed in the position will be performed in Australia and correspond to the tasks of an occupation specified in a legislative instrument:(i)made under subregulation (11); and(ii)in force at the time the application is made;(b)the occupation applies to the identified person in accordance with that instrument.(11)The Minister may, by legislative instrument, specify occupations for the purposes of subregulation (10) and, for each occupation, specify any matters for the purposes of determining whether the occupation applies to an identified person, including matters relating to any of the following:(a)the nominator;(b)the identified person;(c)the occupation;(d)the position in which the identified person is to work;(e)the circumstances in which the occupation is undertaken;(f)the circumstances in which the person is to be employed in the position.Occupations for the Subclass 187 (Regional Sponsored Migration Scheme) visa in the Direct Entry stream(12)The requirements of this subregulation are as follows:(a)the position is located at a place in regional Australia;(b)the business operated by the nominator is located at that place;(c)the position cannot be filled by an Australian citizen or an Australian permanent resident who is living in, or would move to, the local area concerned;(d)the tasks to be performed in the position correspond to the tasks of an occupation specified in a legislative instrument:(i)made under subregulation (13); and(ii)as in force at the time the application is made;(e)the occupation applies to the identified person in accordance with that instrument;(f)the Minister has been advised by a body that meets the requirements set out in paragraph (g) of this subregulation about matters relating to the following:(i)whether the identified person would be paid at least the annual market salary rate for the occupation;(ii)whether there is a genuine need for the identified person to be employed in the position, under the direct control of the nominator;(iii)whether the position can be filled by an Australian citizen or an Australian permanent resident who is living in, or would move to, the local area concerned;(g)the body must:(i)be specified in a legislative instrument made by the Minister for the purposes of this paragraph; and(ii)be located in the State or Territory in which the position is located; and(iii)have responsibility for the local area in which the position is located.(13)The Minister may, by legislative instrument, specify occupations for the purposes of subregulation (12) and, for each occupation, specify any matters for the purposes of determining whether the occupation applies to an identified person, including matters relating to any of the following:(a)the nominator;(b)the identified person;(c)the occupation;(d)the position in which the identified person is to work;(e)the circumstances in which the occupation is undertaken;(f)the circumstances in which the person is to be employed in the position.…Meaning of regional Australia(16)In this regulation:regional Australia means a part of Australia specified in legislative instrument made by the Minister for the purposes of this definition.

Ratio Decidendi

Legal Principle Established

The Tribunal affirms the decision under review to refuse the nomination.Karen McNamaraMemberAttachment – extracts from the migration regulations 19945.19Approval of nominated positions—Subclass 186 (Employer Nomination Scheme) visa and Subclass 187 (Regional Sponsored Migration Scheme) visaApplication(1)A person (the nominator) (including a partnership or unincorporated association) may apply to the Minister for approval of the nomination of a position in Australia.(2)The application must:(a)be made in accordance with approved form 1395 (Internet); and(b)identify the position; and(c)identify a person (the identified person) in relation to the position; and(d)identify an occupation in relation to the position; and(e)identify the subclass and stream to which the nomination relates, which must be one of the following:(i)a Subclass 186 (Employer Nomination Scheme) visa in the Temporary Residence Transition stream;(ii)a Subclass 187 (Regional Sponsored Migration Scheme) visa in the Temporary Residence Transition stream;(iii)a Subclass 186 (Employer Nomination Scheme) visa in the Direct Entry stream;(iv)Subclass 187 (Regional Sponsored Migration Scheme) visa in the Direct Entry stream;(v)a Subclass 186 (Employer Nomination Scheme) visa in the Labour Agreement stream; and(f)be accompanied by the fee mentioned in regulation 5.37; and(fa)be accompanied by any nomination training contribution charge the nominator is liable to pay in relation to the nomination; and(fb)identify the annual turnover (within the meaning of the Migration (Skilling Australians Fund) Charges Regulations 2018) for the nomination; and(g)include a written certification by the nominator stating whether or not the nominator has engaged in conduct, in relation to the nomination, that constitutes a contravention of subsection 245AR(1) of the Act.Approval of nomination(3)The Minister must, in writing:(a)approve the nomination if the Minister is satisfied that the requirements set out in subregulation (4) are met; or(b)otherwise—refuse to approve the nomination.Requirements for approval—general(4)The requirements to be met for the nomination to be approved are as follows:(a)the application is made in accordance with subregulation (2);(b)either:(i)there is no adverse information known to Immigration about the nominator or a person associated with the nominator; or(ii)it is reasonable to disregard any adverse information known to Immigration about the nominator or a person associated with the nominator;(c)if it is mandatory, in the State or Territory in which the position is located, for a person to:(i)hold a licence of a particular kind; or(ii)hold registration of a particular kind; or(iii)be a member (or a member of a particular kind) of a particular professional body;to perform tasks of the kind to be performed in the occupation, the identified person is, or is eligible to become, the holder of the licence, the holder of the registration, or a member of the body, at the time of application;(d)the nominator has a satisfactory record of compliance with the laws of the Commonwealth, and of each State or Territory in which the nominator operates a business and employs employees in the business, relating to employment;(da)any debt due by the nominator as mentioned in section 140ZO of the Act (recovery of nomination training contribution charge and late payment penalty) has been paid in full;(e)if the nomination relates to a visa in a Temporary Residence Transition stream—the requirements set out in subregulation (5) are met;(f)if the nomination relates to a visa in a Direct Entry stream—the requirements set out in subregulation (9) are met;(g)if the nomination relates to a visa in a Labour Agreement stream—the requirements set out in subregulation (14) are met.…Direct Entry stream—additional requirements for approval(9)If the nomination relates to a visa in a Direct Entry stream, the following requirements must also be met:(a)the nominator is actively and lawfully operating a business in Australia;(b)if the nominator’s business activities include activities related to the hiring of labour to other unrelated businesses—the position is within the business activities of the nominator and not for hire to other unrelated businesses;(c)the application identifies a need for the identified person to be employed in the position, under the direct control of the nominator;(d)there is a genuine need for the identified person to be employed in the position, under the direct control of the nominator;(e)the identified person will be employed on a full‑time basis in the position for at least 2 years;(f)the terms and conditions of the identified person’s employment will not include an express exclusion of the possibility of extending the period of employment;(g)the nominator’s business has the capacity to employ the identified person for at least 2 years and to pay the person at least the annual market salary rate for the occupation each year;(h)the requirements set out in subregulation 2.72(15) are met, applying subregulations 2.72(15) and (16) as if:(i)paragraph 2.72(15)(a) did not apply; and(ii)references to the nominee were references to the identified person; and(iii)references to the person were references to the nominator;(i)either:(i)there is no information known to Immigration that indicates that the employment conditions (other than in relation to earnings) that will apply to the identified person are less favourable than those that apply, or would apply, to an Australian citizen or an Australian permanent resident performing equivalent work at the same location; or(ii)it is reasonable to disregard any such information;(j)the requirements set out in subregulation (10) or (12) are met.Occupations for the Subclass 186 (Employer Nomination Scheme) visa in the Direct Entry stream(10)The requirements of this subregulation are as follows:(a)the tasks to be performed in the position will be performed in Australia and correspond to the tasks of an occupation specified in a legislative instrument:(i)made under subregulation (11); and(ii)in force at the time the application is made;(b)the occupation applies to the identified person in accordance with that instrument.(11)The Minister may, by legislative instrument, specify occupations for the purposes of subregulation (10) and, for each occupation, specify any matters for the purposes of determining whether the occupation applies to an identified person, including matters relating to any of the following:(a)the nominator;(b)the identified person;(c)the occupation;(d)the position in which the identified person is to work;(e)the circumstances in which the occupation is undertaken;(f)the circumstances in which the person is to be employed in the position.Occupations for the Subclass 187 (Regional Sponsored Migration Scheme) visa in the Direct Entry stream(12)The requirements of this subregulation are as follows:(a)the position is located at a place in regional Australia;(b)the business operated by the nominator is located at that place;(c)the position cannot be filled by an Australian citizen or an Australian permanent resident who is living in, or would move to, the local area concerned;(d)the tasks to be performed in the position correspond to the tasks of an occupation specified in a legislative instrument:(i)made under subregulation (13); and(ii)as in force at the time the application is made;(e)the occupation applies to the identified person in accordance with that instrument;(f)the Minister has been advised by a body that meets the requirements set out in paragraph (g) of this subregulation about matters relating to the following:(i)whether the identified person would be paid at least the annual market salary rate for the occupation;(ii)whether there is a genuine need for the identified person to be employed in the position, under the direct control of the nominator;(iii)whether the position can be filled by an Australian citizen or an Australian permanent resident who is living in, or would move to, the local area concerned;(g)the body must:(i)be specified in a legislative instrument made by the Minister for the purposes of this paragraph; and(ii)be located in the State or Territory in which the position is located; and(iii)have responsibility for the local area in which the position is located.(13)The Minister may, by legislative instrument, specify occupations for the purposes of subregulation (12) and, for each occupation, specify any matters for the purposes of determining whether the occupation applies to an identified person, including matters relating to any of the following:(a)the nominator;(b)the identified person;(c)the occupation;(d)the position in which the identified person is to work;(e)the circumstances in which the occupation is undertaken;(f)the circumstances in which the person is to be employed in the position.…Meaning of regional Australia(16)In this regulation:regional Australia means a part of Australia specified in legislative instrument made by the Minister for the purposes of this definition.