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

This matter concerned an application by Mr Zakaria Hafda for review of a decision by the Social Services and Child Support Division of the Tribunal, which affirmed a prior decision by Services Australia to reject his claim for a Disability Support Pension. The rejection was based on the existence of a compensation preclusion period, which was not due to expire until 19 April 2025. Mr Hafda contended that his circumstances constituted "special circumstances" for the purposes of subsection 1184K(1) of the *Social Security Act 1991* (Cth), which would allow for the preclusion period to be shortened.

The legal issues before the Tribunal were whether the Applicant's circumstances qualified as "special circumstances" under subsection 1184K(1) of the Act, thereby permitting the Secretary to treat the compensation payment as not having been made or not liable to be made, with the effect of shortening the compensation preclusion period. This required the Tribunal to consider the Applicant's physical condition, his knowledge of the preclusion period at the time of purchasing property, and his overall financial situation, including significant withdrawals from his bank accounts and the nature of any alleged debts.

The Tribunal found that Mr Hafda's physical condition, while unfortunate, was not special and was similar to that of other individuals receiving compensation for workplace injuries. It was also determined that the Applicant likely knew of the compensation preclusion period when he purchased a property, and even if he did not, this fact alone did not constitute special circumstances. The Tribunal expressed concern regarding the Applicant's explanation for withdrawing over $256,000 from his accounts within a six-month period, noting the lack of detail regarding alleged debts and the discrepancy with previous statements. The Tribunal concluded that the Applicant's outright ownership of a property valued at $425,000 meant he had ample assets to support himself until the preclusion period ended, and that tying up funds in real estate did not constitute a special circumstance justifying the expenditure of taxpayer funds for his living expenses.

Consequently, the Tribunal affirmed the decision of the Social Services and Child Support Division, upholding the rejection of the claim for Disability Support Pension and maintaining the compensation preclusion period's expiry date of 19 April 2025.