Zoom Hand Carwash & Cafe Pty Ltd (Migration)

The Administrative Appeals Tribunal (AAT) considered a decision to refuse the nomination of a position under the Temporary Residence Transition (TRT) stream. The applicant, Zoom Hand Carwash & Cafe Pty Ltd, sought to have its nomination approved, but this was refused by the delegate. The Tribunal was tasked with reviewing this refusal.

The central legal issue before the Tribunal was whether the applicant had demonstrated sufficient financial capacity to meet the requirements of regulation 5.19(3) of the Migration Regulations 1994, specifically concerning the future employment of the nominated person. This regulation requires that the nominee will be employed full-time for at least two years on terms that do not preclude extension, and that the employer can meet the proposed salary and other financial commitments.

The Tribunal affirmed the delegate's decision to refuse the nomination. It reasoned that the applicant had failed to provide sufficient evidence of its financial capacity. While the applicant provided financial statements for the 2013, 2014, and 2015 financial years, these statements, particularly the 2014 figures showing a net loss and significant net liabilities, did not demonstrate the company's ability to pay the nominated person's salary, meet its rental obligations of at least $26,000 per annum, and cover the wages of its other employees. The Tribunal noted the absence of any explanation from the applicant or its accountant regarding the business's financial position or a business plan outlining projected sales and future expansion. The Tribunal concluded that all requirements of regulation 5.19(3) must be met for a nomination to be approved, and in this instance, the financial capacity requirement was not satisfied.