Li (Migration)

This matter concerned an application for a Business Skills (Residence) (Class DF) visa, subclass 890 (Business Owner), brought by the Applicant, Ms Li. The core dispute revolved around whether the Applicant's net business assets had been lawfully acquired and whether they exceeded the required threshold. The Administrative Appeals Tribunal (AAT) was tasked with reviewing the delegate's decision.

The Tribunal was required to determine two primary legal issues. Firstly, whether a loan made by the Applicant's business to its former director, Ms Xin Liu, could be included in the calculation of net business assets. Secondly, if so, what was the correct value of the Applicant’s net business assets. In addition to these, the Tribunal also considered whether the Applicant satisfied the requirements of clause 890.211 of the Migration Regulations 1994, which pertains to having an ownership interest in an actively operating main business in Australia for a specified period.

The Tribunal noted that the Applicant relied on a massage therapy and beauty salon, operated by A.C.N. 162 531 151 Pty. Ltd. (ACN), as the business to satisfy the criteria. The Tribunal considered submissions indicating that ACN had invested in QL Interior Lining Pty Ltd, trading as Successo Cabinets, and that the Applicant indirectly held a 30% share in this new business. However, the Tribunal found that the information provided regarding the loan to Ms Liu and the precise valuation of the Applicant's net business assets was insufficient to make a conclusive determination.

Consequently, the Tribunal concluded that the matter should be remitted to the delegate for reconsideration. This remittal was necessary to allow for a proper assessment of the loan's impact on the net business assets and to ensure all relevant criteria under the Migration Regulations were fully satisfied.