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

This matter concerned an application for review of decisions made by the Secretary of the Department of Social Services regarding the applicant's eligibility for youth allowance and loans under the Student Financial Supplement Scheme (SFSS). The applicant had entered into student loans as a minor and with an intellectual impairment, and was not studying on a full-time basis. The court was asked to determine whether the applicant was entitled to youth allowance and the SFSS loans, despite Centrelink being aware of his study load and inviting him to apply for the loans.

The primary legal issues before the Tribunal were: (a) the applicant's eligibility to apply for SFSS loans; (b) the amount of financial supplement the applicant was entitled to receive under the SFSS and the calculation of his outstanding loan balance, including indexation; and (c) whether the Commissioner of Taxation had been correctly advised regarding the relevant SFSS loan amounts. The Tribunal considered sections 1061ZZ and 1061ZZA of the *Social Security Act 1991* (Cth), which require full-time study for eligibility for the SFSS.

The Tribunal found that the applicant was not eligible to obtain SFSS loans in the 2001, 2002, and 2003 financial years because he was not studying on a full-time basis during the relevant periods. Evidence from Centrelink file notes indicated that the applicant had a part-time study load due to his disability and an approved activity agreement. Despite this, the Tribunal noted that the applicant was paid youth allowance at a full-time rate, even when granted an exemption for part-time study. The Tribunal concluded that the operative provisions of the Act regarding the setting aside or variation of decisions did not displace section 1061ZZBA of the Act, which concerns the validity of financial supplement contracts. The Tribunal proceeded to review the SFSS loans to ensure the indexation calculations and outstanding balances were correct.