Dango and Comcare (Compensation)

This matter concerned an appeal by Mrs Dango against a decision by Comcare regarding compensation for an injury sustained in 2014. The dispute centred on whether Mrs Dango's employment contributed to a significant degree to the aggravation of a pre-existing mental health condition, specifically an "adjustment disorder with depression and anxious mood". The Administrative Appeals Tribunal (AAT) was required to determine if this aggravation constituted an "injury" under the relevant Act and whether certain administrative actions taken by her employer were reasonable and undertaken in a reasonable manner, which would otherwise exclude Comcare's liability.

The Tribunal was tasked with determining if Mrs Dango suffered an ailment that qualified as an "injury" under section 5A of the Act, considering her pre-existing condition. A key legal issue was whether the exclusion provision in section 5A(1) applied to the "Informal Performance Management Process" and the "Transfer Decision" made by her employer. This required the Tribunal to assess the reasonableness of the action taken and the manner in which it was undertaken.

The Tribunal found, based on medical evidence, that Mrs Dango did suffer an ailment in 2014, which was an aggravation of her underlying adjustment disorder. It was satisfied that her employment contributed to this aggravation to a significant degree. While the Tribunal found sufficient causation for the exclusion provision to potentially apply to both the performance management process and the transfer decision, it concluded that the performance management process was not undertaken in a reasonable manner, and the transfer decision was neither reasonable action nor undertaken in a reasonable manner. Consequently, the exclusion in section 5A(1) did not operate to exclude liability. The Tribunal was satisfied that the 2014 injury resulted in Mrs Dango's incapacity for work and impairment.

The Tribunal set aside the reviewable decision and substituted a new decision finding Comcare liable under section 14 of the Act for the injury to Mrs Dango, being the aggravation of her adjustment disorder with depression and anxious mood, which occurred on 23 February 2014.