Middleback Investments Pty Ltd and Minister for Finance

The Administrative Appeals Tribunal (AAT) considered an interlocutory application by Middleback Investments Pty Ltd (the Applicant) concerning a claim for compensation arising from the compulsory acquisition of pastoral leases by the Commonwealth. The Applicant sought to have a question of law referred to the Federal Court, or alternatively, to have a preliminary question determined by the AAT before the substantive hearing. The Respondent opposed both applications.

The central legal issues before the AAT were whether a question of law should be referred to the Federal Court, and whether the AAT possessed the power to determine a preliminary question of law in this matter. The Applicant's claim for compensation included losses due to a rising market and a rising wool market, which the Applicant asserted were direct, natural, and reasonable consequences of the acquisition under section 55(2)(c) of the Lands Acquisition Act 1989 (Cth).

The Tribunal reasoned that the questions raised by the Applicant were not purely questions of law but were mixed questions of fact and law. Specifically, determining whether the claimed losses were a "direct, natural and reasonable consequence" of the acquisition required the resolution of underlying factual matters, which had not been agreed upon by the parties. The Tribunal noted the historical difficulties with referring questions of law to a Full Court, often leading to increased complexity, and the value of a primary decision-maker's views on both fact and law. Furthermore, the Tribunal cautioned against exercising the power to determine preliminary questions, as it could lead to fragmentation of the proceedings, and found no specific power to hear and determine such preliminary questions, although it could give procedural directions.

Consequently, the Tribunal dismissed the Applicant's application to refer a question of law to the Federal Court and refused the alternative application to decide the question as a preliminary point.