THE FEDERAL government’s decision to axe the Administrative Appeals Tribunal will have significant consequences for industry, according to trade law expert Andrew Hudson.

Attorney-General Mark Dreyfus on Friday (16 December) announced the government’s intention to abolish what he described as an “irreversibly damaged” AAT and establish a new administrative body in its place.

“By appointing 85 former Liberal MPs, failed Liberal candidates, former Liberal staffers and other close Liberal associates, without any merit-based selection process … the former government fatally compromised the AAT,” Mr Dreyfus said.

He said the central pillar of the new body would be a merit-based appointments process, and that the government intends to reduce current delays experienced by those seeking review of government decisions.

But Mr Hudson of Rigby Cooke Lawyers told DCN there are still questions and uncertainty around the direction of the change and what it means for industry.

“What we’re talking about is nearly 50 years’ worth of jurisprudence, 50 years of process, 50 years of people understanding the mechanism leading to review before the AAT. Now all that may well disappear,” Mr Hudson said.

“We need some transparency about what this new body will be and what its rules will be.”

Mr Hudson said lawyers, importers, exporters, service providers, licensed customs brokers and operators of licensed premises are among many who will be impacted by the change.

“All of their rights are being affected potentially by the removal of the AAT as the body of review,” he said.

“For that very broad category of people whose interests are going to be affected – which includes people who have got matters at the AAT at the moment plus everybody whose rights are affected in the future – they need to have some clarity and understanding of the system in the sense that the system at least maintains, if not enhances their position.”

At this stage, it is unclear how the tribunal will be replaced and how it will affect the external review process.

Mr Hudson said industry needs to know these details to learn how the new environment will function.

“Any remaining cases will be transferred to the new body … and any new cases will need to go to the new body, so you need to know how it’s going to operate,” Mr Hudson said.

But amid a great deal of uncertainty at this stage, Mr Hudson believes there is a chance for improvement.

“I think there are a lot of ways in which AAT procedures could be enhanced or improved, and hopefully this will offer an opportunity for a comprehensive review of the system, and maybe making more significant changes than merely putting just another body in there.”

The AAT is the department responsible for external review of administrative decisions made by the Australian government.