Aydin; Secretary, Department of Social Services and (Social services second review)

This matter concerned an appeal by the Secretary, Department of Social Services, against a decision of the Administrative Appeals Tribunal (AAT) that set aside a decision to impose a compensation preclusion period on Mr Aydin. Mr Aydin had applied for Jobseeker Payment (JSP) after being made redundant, but his applications were rejected due to a compensation preclusion period imposed following a settlement for injuries sustained in a motor vehicle accident. Mr Aydin argued that he had used the compensation payment to purchase a home, car, and furniture, and that his subsequent financial commitments, coupled with difficulty finding work during the COVID-19 pandemic, constituted special circumstances justifying the disregard of the preclusion period.

The primary legal issues before the Tribunal were whether Mr Aydin was subject to a compensation preclusion period and, if so, whether special circumstances existed that would allow for the period to be disregarded in whole or in part. The Tribunal was required to consider the provisions of the *Social Security Act 1991* (Cth) concerning compensation preclusion periods, including the calculation of such periods and the discretion to disregard them in cases of unusual, unforeseen, or exceptional circumstances. The Tribunal also had to assess whether Mr Aydin's financial situation and the impact of the pandemic amounted to such special circumstances.

The Tribunal acknowledged that Mr Aydin was indeed subject to a compensation preclusion period as calculated by the Secretary, which was not disputed. However, the Tribunal found that Mr Aydin had demonstrated financial hardship, including ongoing mortgage payments, utility bills, and the need to support his daughter, which were exacerbated by his redundancy and the challenges of finding employment during the pandemic. The Tribunal considered the objects of the compensation preclusion provisions, which aim to ensure recipients of lump sum compensation support themselves before seeking public funds. Despite the Secretary's submission that Mr Aydin had significant assets, the Tribunal accepted that his circumstances were largely out of his control and that the hardship he experienced warranted the exercise of discretion under section 1184K of the Act.

Consequently, the Tribunal set aside the reviewable decision and remitted the matter to the Secretary. The Tribunal determined that the special circumstances justified disregarding part of the compensation received in calculating the preclusion period, effectively causing it to cease on 13 August 2020. This meant that Mr Aydin was entitled to Jobseeker Payment from that date.