A judge said the family could stay at home in the UK, where Mr Tate has spent all his life – but the Home Office are seeking to overturn the ruling.
The fight comes as thousands of foreign criminals remain in the UK using human rights laws and the Home Office has only just been able to boot out terror suspects Abu Qatada and Abu Hamza after years of wrangling.
The 30-year-old, from Holmfirth, West Yorkshire, said: "My wife is an Australian citizen, our two children are British citizens, and she is six months pregnant with our third child.
"I own an electrical contracting company and employ two tradesmen and two apprentices in turn creating jobs, skills and a contribution to our economy and welfare system.
"We claim no benefits whatsoever, no child support, no family tax credits or others alike.
"Now we are locked in a desperate legal battle which is costing us thousands of pounds that we should be using to look after our home and our family," he said.
The family's plight to stay together has attracted worldwide attention and their plea for support has captivated of more than 1,000 supporters in just 24 hours.
A judge ruled in their favour during a hearing at Manchester Immigration Tribunal last month but the Home Office claim they did not fill out the paperwork correctly before they flew from Australia to the UK.
Now we are locked in a desperate legal battle which is costing us thousands of pounds that we should be using to look after our home and our family
The couple met in Australia's Whitsunday Islands in 2010 while Mr Tate was travelling and they married in October 2011. Their sons were born in Australia but have British passports.
Mr Tate continued: "We had no problems in returning to the UK to resume our family life here last July and applied in September for all the permissions we thought we needed.
"The Home Office got very strict and insisted that Katherine leave the country within 10 days or would be forcibly removed. We instructed a lawyer and so began a very costly process.
"We finally got them to a tribunal in Manchester and the judge ruled in our favour last month but we have now been told the Home Office want to take things to another court and overturn that decision."
To make matters worse, Mr Tate said officials have also instructed the NHS not to give his wife any pregnancy care or treatment without payment.
"I'm not a rich man and every penny I earn is for my family. It annoys us that there are so many people here claiming benefits yet we could be split up as a family,' he added.
Colne Valley MP Jason McCartney has got behind the couple's desperate battle and wrote a letter of support for them to the tribunal.
He insisted that the immigration system needs a rapid overhaul and needs to be simplified.
"There are hundreds of thousands of cases caught up in the backlog. The Tates are genuinely worried and we have been fighting their case since February.
"I hope we can get a decisions sooner rather than later," he said.
A Home Office spokesperson said: "This case is subject to the appeals process and we are unable to comment at this time."
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