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

This matter concerned an appeal by Mr. Chan against the cancellation of his Disability Support Pension (DSP). The dispute arose because Mr. Chan was receiving periodic compensation payments from Allianz for a workers' compensation injury, and these payments impacted his eligibility for DSP. The decision was made by Dr. I Alexander, Member, in the context of a social services review.

The primary legal issue before the Tribunal was whether Mr. Chan's DSP was payable on 6 November 2014, given that he was receiving periodic compensation payments. This required the Tribunal to consider the provisions of the Social Security Act 1991 (Cth) concerning compensation affected payments and the calculation of pension rates when such payments are received.

The Tribunal reasoned that under section 1173 of the Act, the daily rate of a compensation affected payment, such as DSP, is reduced by the amount of the person's daily rate of periodic compensation. Documentary evidence indicated that as of 6 November 2014, Mr. Chan was entitled to weekly compensation payments of $778.32, which was significantly higher than the DSP rate. Although these payments were made in arrears and later suspended due to Mr. Chan's non-compliance with insurer requirements, the entitlement existed at the relevant time. Consequently, Mr. Chan's DSP rate was reduced to nil. Section 98 of the Act stipulates that DSP is not payable if the pension rate would be nil.

Based on this reasoning, the Tribunal concluded that on 6 November 2014, Mr. Chan's DSP rate was nil, and therefore, the pension was not payable. The decision under review, which cancelled Mr. Chan's DSP, was affirmed.