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

This matter concerned an appeal by HGMZ against a decision of the Secretary of the Department of Social Services regarding a disability support pension. The core of the dispute revolved around the characterisation of a lump sum payment received by HGMZ and its impact on their eligibility for the pension, specifically in relation to the preclusion period provisions under social security law. The decision was made by Mr S Evans, a Member of the relevant tribunal.

The primary legal issues before the tribunal were whether a lump sum payment received by HGMZ constituted compensation, and if so, what portion of that lump sum was attributable to compensation. Consequently, the tribunal had to determine whether a preclusion period applied to HGMZ's claim for a disability support pension as a result of this compensation payment. Finally, the tribunal was required to consider whether any special circumstances existed that would justify disregarding all or part of the compensation payment for the purposes of calculating the preclusion period.

In reaching its decision, the tribunal applied the principles of the *Social Security Act 1991* (Cth) concerning compensation payments and preclusion periods. The tribunal found that the lump sum payment did indeed contain a component that was compensation for past and future economic loss. Applying the relevant legislative provisions, the tribunal calculated the compensation amount and determined that this resulted in a preclusion period. The tribunal then considered the evidence presented regarding special circumstances, ultimately concluding that no such circumstances were established to warrant disregarding the compensation payment or shortening the preclusion period. The decision under review was therefore affirmed.