MedAid Pty Ltd and Commissioner of Taxation

In the matter of MedAid Pty Ltd and the Commissioner of Taxation, Deputy President Bernard J McCabe of the Administrative Appeals Tribunal considered an application for dismissal of a review proceeding. The applicant, MedAid Pty Ltd, had been deregistered as a company, raising questions about its capacity to continue the proceedings and the standing of a former director and shareholder, Mr. Steve Arnold, to be joined as a party.

The primary legal issue before the Tribunal was whether Mr. Arnold, as a former director and shareholder, had a sufficient interest affected by the Commissioner's decision to be permitted to join the proceedings as a party, particularly given the deregistration of the applicant company. This involved an interpretation of section 30(1A) of the Administrative Appeals Tribunal Act, which allows for the joinder of other persons whose interests are affected by a decision.

The Deputy President reasoned that while Mr. Arnold might potentially continue the proceedings, his standing depended on demonstrating a clearly affected interest. The Tribunal noted that any success in the substantive proceedings would ordinarily benefit the company, with Mr. Arnold receiving a distribution as a shareholder. However, the deregistration meant any recovered funds would likely go to ASIC, not the company for distribution. The possibility of reregistering the company was acknowledged, but the affected interest was considered remote, contingent on numerous "ifs," including the successful reregistration addressing prior identified shortcomings. Out of caution, the Tribunal decided to allow Mr. Arnold a period to apply for joinder, requiring him to articulate his affected interest, the prospects of success of the substantive application, and reasons for joinder.

The proceedings were ordered to be dismissed under section 42B(1)(b) of the Administrative Appeals Tribunal Act unless Mr. Arnold filed an application to be joined as a party within 28 days of the decision. If such an application were filed, the dismissal would be stayed pending further order.