Pyjama Drama Pty Ltd ATF Plumridge Family Trust (Migration)

This matter concerned an appeal by Pyjama Drama Pty Ltd ATF Plumridge Family Trust against a decision to refuse the nomination of a position under the Direct Entry nomination stream. The core dispute revolved around whether the nominating business possessed the necessary financial capacity to employ a full-time staff member for at least two years, as required by migration regulations.

The Tribunal was required to determine if the applicant met all the requirements for approval of the nomination under regulation 5.19(4) of the Migration Regulations 1994. Specifically, the Tribunal had to assess whether the nominating business had the financial capacity to provide the nominated employment for the required duration, considering the business's turnover, profits, and reliance on speculative income streams such as franchise sales and ongoing franchise fees.

The Tribunal found that the nominating business's financial position was not sufficiently robust to guarantee the employment of a full-time employee at a salary of $55,500 per year for at least two years. While the employment agreement itself did not expressly exclude an extension beyond two years, the business's Profit and Loss statements indicated a loss in one financial year and relied heavily on income from franchise sales, the future generation of which was uncertain. The Tribunal was not satisfied that the business could provide the stated employment without depending on potential and speculative income. Consequently, the Tribunal affirmed the decision under review to refuse the nomination.