N1 HOLDINGS LIMITED (Migration)

This matter concerned a review by the Administrative Appeals Tribunal of a decision to refuse a nomination under the Direct Entry stream. The applicant, N1 Holdings Limited, sought to nominate a position within its business, which operates under various brands including "N1 Loans," "N1 Realty," and "N1 Migration." The delegate had found that the company's financial performance, characterised by declining gross revenue and significant business losses, indicated it was not in a sound financial position to guarantee full-time employment for at least two years.

The primary legal issue before the Tribunal was whether N1 Holdings Limited met the requirements for approving a nomination under regulation 5.19(4) of the Migration Regulations 1994, specifically concerning the financial capacity of the business to provide a full-time position for at least two years. The Tribunal was required to assess the evidence of the company's financial performance against the regulatory criteria for a Direct Entry nomination.

The Tribunal, presided over by Member Lilly Mojsin, considered the financial statements and tax returns provided by the applicant. These documents revealed a consistent pattern of declining gross revenue and substantial business losses for the years ending 30 June 2015 through to 30 June 2019. The Tribunal noted that there was no evidence presented to suggest potential business growth that would offset these losses. Applying regulation 5.19(4), the Tribunal was not satisfied that the nominator had demonstrated the necessary financial capacity to guarantee the full-time employment for the required duration.

Consequently, the Tribunal affirmed the decision under review to refuse the nomination. The applicant had not sought to satisfy the criteria for the Temporary Residence Transition Nomination stream, and therefore, had not met the requirements of regulation 5.19(3). Accordingly, the nomination could not be approved.