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

This matter concerned an appeal by Mr and Mrs Farag to the Administrative Appeals Tribunal (AAT) regarding a decision by the Secretary of the Department of Social Services. The dispute arose from the calculation of the rate of age pension payable to the applicants, which was reduced following a rollover of their superannuation funds. The applicants argued that they were unaware that this rollover would trigger new superannuation regulations that would subject their income stream to deeming provisions, thereby increasing their assessed ordinary income and reducing their pension.

The AAT was required to determine whether the savings provisions under Item 48 of Schedule 11 to the relevant amending Act applied to the applicants' account-based pension income stream. Specifically, the Tribunal needed to ascertain if the income stream commenced after 1 January 2015, which would preclude the application of these savings provisions. Furthermore, the AAT had to consider whether it possessed any discretion under the *Social Security Act 1991* (Cth) to disregard the deeming provisions due to the applicants' adverse circumstances, such as ill health and financial stress.

The Tribunal reasoned that the savings provisions under Item 48 of Schedule 11 did not apply because the asset-tested income stream from the AustralianSuper account-based pension did not commence until after 1 January 2015, specifically on 26 February 2018, when the funds were rolled over. The Tribunal found no provision within the *Social Security Act 1991* (Cth) that conferred a discretion to not apply the deeming provisions under section 1077 based on the applicants' personal circumstances or lack of notification from their superannuation funds. The Tribunal affirmed the decision under review.