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

The Administrative Appeals Tribunal (AAT) considered a dispute between Gable (the applicant) and the Secretary, Department of Social Services, concerning the applicant's eligibility for an age pension. The core of the disagreement revolved around how certain assets and liabilities should be treated for the purposes of the social security asset test.

The Tribunal was required to determine two primary legal issues. Firstly, whether a mortgage debt on the applicant's principal residence could be offset against other assets when calculating her total asset value for the age pension asset test. Secondly, the Tribunal needed to consider whether the applicant had experienced severe financial hardship.

In its reasoning, the Tribunal affirmed the decision under review. It noted that the applicant and her husband were directors of a private company, Sydney Steam Services Pty Ltd, which owned business premises. The applicant sought to have a significant mortgage debt on her principal residence deducted from her assessable assets. However, the Tribunal found that the applicant had provided vague and uncertain evidence regarding this debt and its servicing. Crucially, the applicant did not contest the valuation of the company's assets or the method used to calculate her attributable asset value within the company. The Tribunal was satisfied that the evidence presented justified the findings made, including the valuation of a motor vehicle and the treatment of certain bank funds. Consequently, the Tribunal affirmed the decision that the applicant's assets, as assessed, did not qualify her for the age pension.