Crowther and Secretary, Department of Social Services (Social security)
[2025] ARTA 653
•31 March 2025
Crowther and Secretary, Department of Social Services (Social security) [2025] ARTA 653 (31 March 2025)
Applicant/s: Mr Crowther
Respondent: Secretary, Department of Social Services
Chief Executive Centrelink
Tribunal Number: 2024/P192363
Tribunal: Member K Hamilton
Place:Brisbane
Date:31 March 2025
Decision:The Tribunal affirms the decision under review.
CATCHWORDS
SOCIAL SECURITY – Jobseeker Payment – lump sum payment – royalties pursuant to native title claim – assessed as ordinary income over 52 weeks from date of receipt – fortnightly income exceeds limit – all money spent on vehicle and income-generating equipment – decision under review affirmed
Names used in all published decisions are pseudonyms. Any references appearing in square brackets indicate that information has been omitted from this decision and replaced with generic information pursuant to subsection 201(1A) of the Social Security (Administration) Act 1999.
Statement of Reasons
BACKGROUND
This matter concerns a decision made by Services Australia – Centrelink (Centrelink) to cancel Mr Crowther’s jobseeker payment (JSP) from 6 August 2024, due to his receipt of a lump sum payment.
Mr Crowther was in receipt of JSP on 6 August 2024. On that date, Mr Crowther was paid a lump sum of $61,897.93 from the [Name Trust].
On 21 August 2024, Mr Crowther advised Centrelink that he had received a lump sum payment from the [Trust]. On the same day, Centrelink made a decision to cancel Mr Crowther’s JSP as his income exceeded the income limit.
Mr Crowther sought internal review of that decision and on 31 October 2024, a Centrelink authorised review officer affirmed the decision.
Mr Crowther then applied to the Administrative Review Tribunal (the Tribunal) seeking independent review of Centrelink’s decision.
The matter was heard on 18 March 2025. Mr Crowther participated in the hearing by telephone. The Tribunal had regard to relevant documents produced by Centrelink, numbered as pages 1-49.
ISSUES
The statutory provisions relevant to this review are contained in:
·the Social Security Act 1991 (the Act); and
·the Social Security (Administration) Act 1999 (the Administration Act).
The issues which arise in this case are:
· was JSP payable to Mr Crowther having regard to the income test; and
· was it correct to cancel Mr Crowther’s JSP from 6 August 2024.
CONSIDERATION
If a person’s rate of JSP is nil, that benefit is not payable: section 608 of the Act.
A person’s rate of JSP is determined under the Benefit Rate Calculator B set out in section 1068 of the Act: section 643 of the Act. The person’s rate of payment must be calculated by applying both an income test and an assets test. The lower of the rates calculated under the income test or the assets test is the rate payable to the person.
Under the income test, a person’s ordinary income that is less than $150 per fortnight (the income free area) does not affect the person’s rate of payment. For every dollar of income over $150 a person’s rate of JSP is progressively reduced until the income limit (at the relevant time, $1,430.50 per fortnight) is reached. If a person’s fortnightly income exceeds the income limit, their rate of JSP is nil.
Section 8 of the Act contains income definitions. Royalties are assessed as ordinary income of the recipient.
Mr Crowther confirmed at hearing that the amount of $61,897.93 was paid directly to his account by the [Trust]. This was a payment of royalties agreed pursuant to a native title claim.
Mr Crowther told the Tribunal that he had spent all of the royalties he received within a week. He purchased a 4WD vehicle for $40,000, a metal detector for $10,000 and camping gear. This equipment was to allow him to prospect for gold with a view to getting off Centrelink benefits. Mr Crowther says he now has no money left, has no other source of income, and is facing eviction from his home of 27 years.
Where a person receives income in the form of a lump sum payment, in certain circumstances the person is taken to have received the lump sum as ordinary income over a period not exceeding 52 weeks beginning on the day the person received the payment: section 1072A of the Act. For this provision to apply, the lump sum payment must not be any of the following:
·deemed income from a financial asset or income from an income stream;
·in relation to remunerative work undertaken by the person;
·an exempt lump sum (as defined in subsection 8(11) of the Act); or
·compensation (as defined in section 17 of the Act).
The royalty payment received by Mr Crowther does not fall within the definitions of an exempt lump sum or compensation. It was not paid with respect to any remunerative work undertaken by Mr Crowther and was not income from a financial investment or income stream. This lump sum payment is therefore to be assessed pursuant to section 1072 of the Act as ordinary income of Mr Crowther over a period of 52 weeks from 6 August 2024.
The Social Security Guide, which sets out government policy to aid in the interpretation of social security legislation, deals specifically with the receipt of royalties at topic 4.3.9.50. It states that royalties paid to an individual member of an indigenous community is treated as income and assessed over a period of 52 weeks from the date of receipt.
Assessing the lump sum received by Mr Crowther on 6 August 2024 over a period of 52 weeks equates to a fortnightly income of $2,360.69. This is over the income cut-out limit for JSP and therefore Mr Crowther’s rate of JSP for the period of 52 weeks from 6 August 2024 is nil.
If a social security payment is not payable, the payment must be cancelled or suspended: section 80 of the Administration Act.
As Mr Crowther’s rate of JSP was nil, JSP was not payable to him and Centrelink’s decision to cancel his JSP from 6 August 2024 was correct.
DECISION
The Tribunal affirms the decision under review.
| Date(s) of hearing: | Tuesday, 18 March 2025 |
| Representative for the Applicant: | Self |
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