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

This matter concerned an appeal by Mr and Mrs Bennett against the cancellation of their Age Pension and Disability Support Pension, respectively. The Secretary of the Department of Social Services had cancelled the pensions because the combined assets of Mr and Mrs Bennett exceeded the statutory threshold of $816,000. The core of the dispute revolved around whether a sum of money advanced by the Bennetts to a body corporate constituted a loan, and consequently, whether a deficit of that body corporate could be used to offset the Bennetts' assessable assets.

The Administrative Appeals Tribunal was required to determine two primary legal issues. Firstly, it had to ascertain whether the advance of money by the Bennetts to a company was to be characterised as a loan for the purposes of the *Social Security Act 1991* (Cth). Secondly, the Tribunal needed to decide whether, if it was a loan, the deficit of the company could be offset against the Bennetts' assessable assets when calculating their eligibility for the pensions.

Deputy President S A Forgie P found that the Tribunal had erred in its assessment of the Bennetts' assets. The Deputy President reasoned that the advance of money to the company was indeed a loan, and that the deficit of the company should have been considered in reducing the value of the Bennetts' assessable assets. The Deputy President applied the principles of statutory interpretation to the definition of "asset" under the *Social Security Act 1991* and relevant provisions concerning the assets test, including those that allow for the reduction of asset values by liabilities. The decision under review was set aside, and the matter was remitted to the Tribunal for redetermination.