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

The case of *Carper and Secretary, Department of Social Services (Social services second review)* concerned a debt raised against Mr Carper for overpayments of his carer payments. The dispute centred on whether this debt should be waived, and also involved a secondary issue regarding the treatment of an inheritance received by Mrs Carper as an exempt lump sum for social security purposes. The matter was heard by Member K Parker.

The legal issues before the Tribunal were whether the Secretary should waive the right to recover all or part of the debt owed by Mr Carper, and whether the inheritance received by Mrs Carper constituted an exempt lump sum under the relevant provisions of the Act. Specifically, the Tribunal had to consider the criteria for waiving a debt under section 1237AAD of the Act, which requires the Secretary to be satisfied that the debt did not result from the debtor knowingly making false statements or omissions, that there are special circumstances (other than financial hardship alone) making waiver desirable, and that waiver is more appropriate than writing off the debt. The Tribunal also had to determine if Mrs Carper's inheritance met the criteria for an exempt lump sum under section 8(11) of the Act.

The Tribunal reasoned that waiver of the debt was desirable under section 1237AAD due to the Carpers' consistent efforts to act appropriately, their disclosure of pension payments to Centrelink, their reliance on assurances from Centrelink that their benefits would not be affected, and the significant financial hardship Mr Carper would face if required to repay the debt, exacerbated by his role as carer for his wife who is wheelchair-bound and requires total assistance. Regarding the inheritance, the Tribunal agreed with the Administrative Appeals Tribunal's findings that the lump sums received by Mrs Carper were exempt lump sums under section 8(11) of the Act, as they were not periodic amounts, leave payments, or income from remunerative work, and met the characteristics of a lump sum unlikely to be repeated or necessarily anticipated.

Consequently, the Tribunal set aside the decision under review and substituted a decision to waive the whole of the debt raised against Mr Carper for overpayments of his carer payments. The Tribunal also affirmed the finding that Mrs Carper's inheritance was an exempt lump sum and should not have been assessed as income for the purposes of determining her entitlement to disability support pension.