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

This matter concerned an application for newstart allowance by Ali Keskin, who had received a significant lump sum compensation payment following a motor vehicle accident. The Secretary of the Department of Social Services had applied a compensation preclusion period to Mr. Keskin, which resulted in the cancellation of his disability support pension and the rejection of his subsequent application for newstart allowance. Mr. Keskin sought review of this decision, arguing that special circumstances warranted the exercise of discretion to disregard the preclusion period.

The Administrative Appeals Tribunal was required to determine whether Mr. Keskin was subject to a compensation preclusion period and, if so, whether special circumstances existed that would justify treating the whole or part of his compensation payment as not having been made. The Tribunal considered the calculation of the preclusion period and the evidence presented regarding the expenditure of the compensation funds.

The Tribunal found that the compensation preclusion period had been correctly calculated and applied by the Secretary. Regarding the expenditure of the compensation, the Tribunal noted that while Mr. Keskin claimed to have spent the entire $1,200,000, he had failed to provide sufficient documentary evidence to verify significant portions of this expenditure, including a substantial loan repayment to his father and ongoing support for his children overseas. The Tribunal concluded that, on balance, Mr. Keskin had not demonstrated circumstances that warranted the exercise of discretion under the special circumstances provisions.

The decision under review, which affirmed the rejection of Mr. Keskin's newstart allowance application, was affirmed by the Tribunal.