ZOBON AUSTRALIA PTY LTD (Migration)

The Administrative Appeals Tribunal considered a dispute concerning the approval of a nominated position under the Temporary Residence Transition stream of the Employer Nomination scheme. The applicant, Zobon Australia Pty Ltd, sought approval for a Bed and Breakfast Operator position. The core of the dispute revolved around Zobon Australia's financial capacity to maintain the nominated employment, particularly in light of its Business Activity Statements (BAS) which indicated the business was running at a loss, and a disparity between these BAS and the company's financial statements.

The Tribunal was required to determine whether Zobon Australia had demonstrated sufficient financial capacity to employ the nominee, notwithstanding the apparent losses shown in its BAS. This involved assessing the credibility of the financial information provided and considering whether the business's financial position was sustainable in the context of its broader group structure and the differing accounting practices between China and Australia.

The Tribunal found that while the BAS statements indicated a loss, this did not necessarily demonstrate an inability to maintain employment. It was persuaded by evidence that Zobon Australia was part of a well-funded group, suggesting an ability to tolerate temporary financial losses. The Tribunal also acknowledged that differences in accounting practices and obligations between China and Australia could explain some of the discrepancies observed. Ultimately, the Tribunal concluded that the applicant had sufficient financial capacity.

The Tribunal set aside the original decision and substituted a new decision approving the nomination.