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

This matter concerned an application for review of a decision by the Administrative Appeals Tribunal (AAT) which affirmed the Department of Social Services' rejection of Ms Hamilton's claim for Newstart Allowance. The rejection was based on a compensation preclusion period arising from a lump sum settlement of a workers' compensation claim following a motor vehicle accident. The Department had determined this preclusion period extended until April 2025, and also identified a recoverable charge for Newstart Allowance paid to Ms Hamilton.

The primary legal issues before the court were whether Ms Hamilton was subject to a lump sum compensation payment preclusion period and, if so, for what duration. Crucially, the court was also required to determine if "special circumstances" existed, as contemplated by subsection 1184K(1) of the *Social Security Act 1991* (Cth), which would permit a reduction of that preclusion period.

The court reasoned that the compensation recovery provisions are intended to prevent individuals from receiving both compensation for lost income and income support for the same period. However, it also acknowledged that the "special circumstances" provisions exist to allow for exceptions. Applying these principles, the court found that Ms Hamilton's circumstances were indeed special, considering the totality of her situation, which included severe financial hardship and an abusive domestic relationship. Consequently, the court determined that so much of her compensation payment should be treated as not having been made, thereby reducing the applicable preclusion period.

The application for review was successful. The decision under review was set aside, and Ms Hamilton's preclusion period was reduced so that it ended on 21 May 2020.