By a review of a series of comparable decisions in the Administrative Appeals Tribunal (AAT) some of the problems that may arise as the jurisdiction and role of the AAT continues to expand in the review on the merits of Commonwealth administrative decisions are identified. The problems include first, the apparent difficulty for democratic theory of unelected tribunal members (including persons who are also judges) reviewing policy determined by elected Ministers; secondly, the creation of a dichotomy between decisions made by the AAT and decisions of public servants faithfully and more consistently applying Ministerial policy; thirdly, the limitation upon the membership and procedures of the AAT which restrict any truly effective wide-ranging review of government policy; and, fourthly, the potential damage to community confidence in the judiciary, by the involvement of judges in the frank determination of controversial matters of public policy. The role of policy-making in the courts is acknowledged and similarities and differences in the function of the courts and the AAT in the review of policy issues are indicated. It is concluded that the AAT will require all arms of government in Australia to face more precisely the role of policy in adjudicative decision-making.