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

This matter concerned an appeal by Mr Christensen against a decision by the Secretary of the Department of Social Services regarding the rate of his Age Pension. The dispute centred on the valuation of Mr Christensen's property for the purposes of calculating his assets, which in turn affected the pension rate. The decision was reviewed by Member P Ranson.

The primary legal issue before the Tribunal was to determine the correct market value of Mr Christensen's hinterland property as at 17 January 2023, for the purpose of assessing his eligibility for and the rate of the Age Pension. This involved considering the weight to be given to a formal valuation report prepared by Jones Lang LaSalle Advisory Services Pty Ltd (JLL) and Mr Christensen's own informal valuation or appraisal, and how any outstanding debts or encumbrances on the property should be factored into the net market value calculation.

The Tribunal considered the JLL valuation, which assessed the property's market value at $555,000, prepared in accordance with Australian Property Institute Practice Standards and the Social Security Act 1991. Mr Christensen indicated he had obtained his own valuation which suggested a higher figure, but was reluctant to provide this as evidence. The Tribunal noted that the definition of market value requires an arm's length transaction between a willing buyer and seller. The Tribunal found that the Aussie Basic Home Loans constituted valid debts or encumbrances against the property, and that the market value should be reduced by the outstanding balance of these loans to arrive at the net market value.

The decision under review was affirmed.