LKM Daebak Pty Ltd (Migration)

LKM Daebak Pty Ltd sought judicial review of a decision by the Administrative Appeals Tribunal (AAT) which affirmed the delegate's refusal to approve its nomination of a position under the Temporary Residence Transition stream of the subclass 482 visa program. The core of the dispute concerned whether LKM Daebak had demonstrated the financial capacity to provide full-time employment for the nominated position for a period of two years.

The primary legal issue before the Federal Court was whether the AAT had erred in law in its assessment of LKM Daebak's financial capacity. Specifically, the court was required to consider whether the AAT had properly applied the relevant legislative provisions and policy guidelines in determining whether the company could meet its obligations to employ the nominated individual for the requisite period, particularly in light of the financial information presented.

The court found that the AAT had not erred in law. It reasoned that the financial information provided to the Department of Home Affairs had been insufficient to establish the necessary financial capacity. While LKM Daebak later provided financial statements to the AAT, these revealed a lack of business growth over a five-year period and a repayment plan for an increasing Australian Taxation Office (ATO) debt. Furthermore, the proposed role for the nominee was different from their current role and offered a lower salary. The AAT had permissibly concluded, based on this evidence, that LKM Daebak had failed to demonstrate it had the financial capacity to employ the nominee for two years.

The application for judicial review was dismissed.