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

This matter concerned an appeal by Mrs Carper against a decision of the Secretary of the Department of Social Services regarding a debt raised against her for overpayments of Disability Support Pension (DSP). The debt arose from a period between April 2012 and February 2016. A significant component of the debt also related to the assessment of an inheritance received by Mrs Carper.

The primary legal issues before the Tribunal were whether the Secretary should waive the debt under section 1237AAD of the Social Security Act 1991 (the Act) due to special circumstances, and whether Mrs Carper's inheritance constituted an exempt lump sum under section 8(11) of the Act, thereby not being assessable as income for the purposes of her DSP entitlement. The Tribunal also considered the application of section 1237A of the Act concerning administrative error.

The Tribunal found that Mrs Carper and her husband had acted in good faith, consistently disclosing information to Centrelink and seeking clarification regarding her pension payments. They had reasonably relied on assurances from Centrelink that her new pension would not affect her benefits. Furthermore, the Tribunal noted that Mr Carper's role as a full-time carer for Mrs Carper, who is wheelchair-bound and requires constant assistance, significantly limits their joint capacity to improve their financial position. Given these special circumstances, including the significant financial hardship Mr Carper would face if the debt were enforced, the Tribunal determined it was desirable to waive the entire debt under section 1237AAD. The Tribunal also agreed with the Administrative Appeals Tribunal's finding that Mrs Carper's inheritance was an exempt lump sum under section 8(11) of the Act, and therefore should not have been assessed as income when calculating her DSP entitlement.

The Tribunal set aside the decision under review and, in substitution, decided that the debt raised against Mrs Carper be waived under sections 1237A and 1237AAD of the Act. The Tribunal affirmed the finding that Mrs Carper's inheritance was an exempt lump sum.