Cole- Herring and Secretary, Department of Social Services (Social services second review)

This matter concerned an appeal by Cole-Herring against a decision of the Secretary of the Department of Social Services regarding the assessment of a disability support pension. The core of the dispute revolved around the impact of a lump sum compensation payment received by Cole-Herring on their eligibility for, and the amount of, disability support pension, specifically concerning the application of a preclusion period and the potential for waiver of any resulting debt. The review was heard by M Griffin SM.

The primary legal issues before the SM were whether the lump sum compensation payment constituted a "compensation payment" for the purposes of the *Social Security Act 1991* (Cth), whether the preclusion period had been correctly calculated and applied, and whether there were "special circumstances" that would warrant a waiver of any debt that had accrued due to the overpayment of pension. The SM was required to consider the nature of the lump sum payment and its intended purpose in relation to the legislative provisions governing disability support pensions and compensation affected payments.

In reaching their decision, the SM considered the nature of the lump sum payment, which was found to represent both past and future economic loss. The SM determined that the preclusion period had been correctly applied by the Department. However, the SM found that special circumstances did exist in this case, primarily due to the significant impact the preclusion period had on Cole-Herring's financial situation and the fact that the compensation was intended to cover future losses. Consequently, the SM varied the review decision, waiving the debt that had arisen.