25/09/2026
Today the Federal Circuit and Family Court of Australia delivered only the second judgment on costs in migration matters since its relevant rules were updated last year.
In the first such judgment, the Court considered an application for costs under r #25.14 in the matter of EHQ18 v Minister for Immigration and Citizenship (No 2) [2025] FedCFamC2G 2060. Under that rule, the Court may award costs in excess of what is colloquially known as the if “there is sufficient reason and it is in the interests of justice”.
By contrast, today’s judgment in Gaddam v Minister for Immigration and Citizenship [2026] FedCFamC2G 1881, considered a Varess client’s application for costs under r 32.02(d). Under that rule the Court may order an unsuccessful party to pay costs as taxed under Pt 40 of the Federal Court Rules .
In granting our client’s application, the Court did not accept the first respondent’s submission that even if proceeding under r 32.02 the Court should give weight to the scale amounts.
In the substantive part of his matter our client relied on multiple grounds, including a ground concerning migration agent fraud. Whilst the Minister ultimately conceded the matter prior to final hearing on one of our client’s other grounds, the Court did not accept that the absence of a concession on the fraud ground weighed against the costs order sought by our client, given the majority of costs incurred by our client were in relation to his fraud ground.
Noting the costs incurred, the Court found that taxation “is the best option to ensure that [our client] receives a fair indemnity for the costs he reasonably incurred”: [31].
The Court also noted that our client had given the Minister ample notice of his proposed grounds, and refrained from incurring further costs for a period to allow the Minister the opportunity to concede the matter before costs escalated in advancing the fraud ground. It was in the absence of any concession that our client proceeded to prepare the matter for hearing, including on the fraud ground.