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

This matter concerned an appeal by Ms Jade Hawkins (the Applicant) against a decision of the Social Services and Child Support Division of the Administrative Appeals Tribunal. The Tribunal's decision affirmed the Department of Social Services' determination that the Applicant's JobSeeker Payment (JSP) from 20 September 2021 should be calculated at a reduced rate, based on an assessed net business income of $11,323 per annum. The Applicant had commenced operating a commercial bond cleaning business and had provided various, often conflicting, financial information to Centrelink regarding her earnings.

The primary legal issue before the Tribunal was to determine the correct assessment of the Applicant's net business income for the purpose of calculating her JSP rate from 20 September 2021. This involved considering the reliability of the Applicant's evidence, the documentary evidence provided, and the appropriate method for assessing income from a sole trader business in the absence of a finalised income tax return. The Tribunal was required to ascertain whether the Applicant's self-employment income had been accurately assessed and whether the previous decision correctly reflected her financial circumstances at the relevant time.

The Tribunal found that the Applicant was not a reliable witness, as her oral evidence was contradictory and did not align with the documentary evidence. While acknowledging the Applicant's difficult personal circumstances, the Tribunal noted that her reporting to Centrelink indicated she had earned income from her cleaning activities. Specifically, the Tribunal relied on Centrelink records showing the Applicant's earnings were calculated as $6,111 for the three months prior to a 15 September 2021 appointment, and that she had reported income in August 2021. The Tribunal also noted the absence of evidence to support the Applicant's claim that a Profit and Loss Statement submitted on 1 October 2021 was fraudulent. Applying the principle that JSP is a means-tested payment and that income is assessed based on net returns available to meet commitments, the Tribunal determined that the most accurate estimation of the Applicant's net business income was $3,785, as disclosed in the Profit and Loss Statement submitted on 1 October 2021. However, the Tribunal ultimately accepted the Respondent's submissions regarding the calculation method and substituted this figure with $11,292 as the Applicant's net annual business income.

Consequently, the Tribunal set aside the decision of the Social Services and Child Support Division and substituted it with a new decision. The Tribunal determined that from 20 September 2021, the Applicant was entitled to receive JobSeeker Payment at a reduced rate, calculated by taking into account a net business income of $11,292 per annum.