LBHS and Secretary, Department of Social Services (Social security second review)

LBHS and Secretary, Department of Social Services (Social security second review) [2025] ARTA 1147 (28 July 2025)
Applicant/s:  LBHS
Respondent:  Secretary, Department of Social Services
Tribunal Number:                2024/4948 and 2024/4952
Tribunal:Senior Member T. Simon (second review)
Place:Sydney
Date:28 July 2025
Decision:The Tribunal affirms the decisions under review.

…………………………[SGD]…………………………………………
Senior Member T Simon
28 July 2025
Names used in all published decisions are pseudonyms. Any references appearing in square brackets indicate that information has been removed from this decision and replaced with generic information so as not to identify involved individuals as required by subsections 201(1A) - 201(1B) of the Social Security (Administration) Act 1999

Catchwords
SOCIAL SECURITY – job seeker payment – liquid assets waiting period – ordinary waiting period – income maintenance waiting period – severe financial hardship – decision under review affirmed
Legislation
The Administrative Appeals Act 1975
Administrative Review Tribunal Act 2024 (Cth)
Administrative Review Tribunal (Consequential and Transitional Provisions No. 1) Act 2024
Social Security Act 1991
Social Security (Administration) Act 1999
Statement of Reasons

These reasons relate to two applications for second review of decisions made by Services Australia – Centrelink (Centrelink). The Tribunal affirmed the decisions on first review on 8 July 2024.
The first decision was made by Centrelink on 20 April 2023. Centrelink decided that the applicant qualified for jobseeker payment from 28 February 2023, but that he would not be paid until 6 June 2023 because he was subject to a 13-week liquid assets waiting period and a 7-day ordinary waiting period.
The second decision was made by Centrelink on 12 September 2023. Centrelink decided to apply an income maintenance period to the applicant for the period 29 August 2023 to 26 February 2024.
On 12 July 2024, the applicant made an application to the Administrative Appeals Tribunal for second review of both decisions.
From 14 October 2024, the Administrative Appeals Tribunal became the Administrative Review Tribunal and under the transitional provisions in the Administrative Review Tribunal (Consequential and Transitional Provisions No. 1) Act 2024, applications for review to the Administrative Appeals Tribunal that were not finalised before 14 October 2024 are taken to be an application for review to the Administrative Review Tribunal.
Pursuant to s 131D of the Administrative Review Tribunal Act 2024 (Cth), a person whose interests are affected by an ART social services decision may apply to the Tribunal for second review of the decision. An ART social services decision includes an eligible social services decision which has been affirmed by the Tribunal; s 131D(3)(a). An eligible social services decision includes a decision made under the Social Security Act 1991; s 131C(g). Section 131J of the Administrative Review Tribunal Act provides that an application for second review must be made within the time prescribed under s 18 of the Administrative Review Tribunal Act 2024. Relevantly, s 18 provides that a second review application must be made within 28 days of the party receiving the first review decision. The Administrative Appeals Act 1975 also required that second review application be made with 28 days of the parties receiving the first review decision.
The second review application was made within the 28 days period.
The applicant appeared at the hearing and was assisted by a Mandarin interpreter.
The Tribunal had before it the following documents:
(i)Submissions from the applicant dated 19 August 2024 and marked exhibit 1.
(ii)A bundle of documents received from the respondent on 9 August 2024, marked exhibit 2 (Centrelink documents).
(iii)An email received from the applicant on 1 May 2025 and marked exhibit 3.
(iv)The applicant has provided further submissions in response to the respondent’s statement of issues, facts, and contentions which were marked exhibit 4.
CONSIDERATION
The decisions under review
In an email dated 8 April 2024 and again at hearing the applicant stated that he applied for jobseeker payment on 20 February 2023 and that Centrelink rejected his application twice without reason on 5 April 2023 and on 19 April 2023. He states that he complained to Centrelink and did not receive a formal response about those complaints. He submits that Centrelink changed and destroyed his claim history to cover up their mistakes. He states that he left his job once and his waiting period was calculated twice.
The Centrelink records note that on 5 April 2023 Centrelink did reject the claim because the applicant failed to supply documents.[1] The records also show that the claim was also rejected on 19 April 2023 because the applicant failed to provide documents.[2] However, the records also indicate that the rejected claims were reassessed, and the job seeker payments were subsequently assessed on 20 April 2023.[3]
[1] Centrelink documents p 127.
[2] Centrelink documents p 130.
[3] Centrelink documents p 123.
The Centrelink records note that the applicant sought review in relation to the decision to impose an income maintenance periods and liquid assets waiting period on 19 October 2023.[4] There is no suggestion that the applicant sought review of the rejection decisions. However, even if the applicant had sought review of those decisions, the rejection decisions have little impact on the overall assessment of the jobseeker claim. The claim for jobseeker payment made on 20 February 2023 was ultimately granted. The rejections, which occurred on the basis that the applicant had to supply further documents, were reassessed a very short time thereafter and the processing of the claim proceeded. The jobseeker claim was not ultimately rejected, rather the payment of the jobseeker claim was affected by the liquid assets waiting period, a seven-day ordinary waiting period and income maintenance period.
[4] Centrelink documents p 137.
Moreover, the applicant makes submissions that the failure to review those rejections by Centrelink is indicative of a changing of records, mistakes and a cover up. There is no evidence before the Tribunal which indicates any of those things. However, as was explained to the applicant at hearing, the Tribunal’s role in these proceedings is to review the relevant decisions and not make finds and act in relation to purported misconduct by Centrelink.
On 19 October 2023, the applicant requested review of both the decision not to pay him job seeker payment until 6 June 2023 and the decision not to pay him job seeker payment in the period from 29 August 2023 to 26 February 2024.
Liquid assets waiting period and ordinary waiting period
The imposition of the liquid assets waiting period and ordinary waiting period does not appear to be disputed by the applicant (except in so far as he raised concerns about the claim being rejected).
Section 598 of the Social Security Act 1991 provides that a person is not qualified for jobseeker payment unless the person has served the liquid assets waiting period in relation to their claim.
Subsection 598(2B) of the Social Security Act provides that the calculation of the liquid assets waiting period involves the application of a formula that deducts a reserve amount from the value of the person’s liquid assets and then applies a divisor of $1,000 to identify the number of weeks in a person’s liquid assets waiting period. The maximum liquid assets waiting period is 13 weeks.
‘Liquid assets’ is defined in in paragraph 14A(1)(b) of the Social Security Act as including a person’s cash and readily realisable assets, including amounts deposited with a bank whether or not the amount can be withdrawn immediately.
Subsection 14A(2) of the Social Security Act provides that a person’s liquid assets also includes the liquid assets of the person’s partner for the purposes of jobseeker payment.
The applicant submitted a claim to Centrelink for job seeker payment on 20 February 2023.[5] The applicant was assessed as qualifying for jobseeker payment from 28 February 2023 but would not be paid until 6 June 2023 because he was subject to a seven-day ordinary waiting period and 13-week liquid assets waiting period.[6]
[5] Centrelink documents pp 21-30.
[6] Centrelink documents p 112.
Centrelink determined that the value of the applicant and his partner’s liquid assets as of 28 February 2023 was $69,212.00.[7] A Commonwealth bank statement provided by the applicant to Centrelink shows that a balance of $69,012.03 was held in that account as of 20 February 2023 when the claim was made.[8]
[7] Centrelink documents p 13.
[8] Centrelink documents p 48.
The liquid assets exceeded the value of liquid assets at which point the maximum liquid assets waiting period of 13 weeks will apply ($23,000 or more).[9]
[9] >
On that basis the Tribunal finds that the applicant was correctly found to be subject to a liquid asset waiting period of 13 weeks. In accordance with subsection 598(3A) of the Social Security Act, the liquid asset waiting period began on the day after the applicant ceased work which was 28 February 2023. The 13-week liquid assets waiting period concluded on 30 May 2023.
Pursuant to sections 620 and 621 of the Social Security Act the applicant was also subject to an ordinary waiting period of seven days. The ordinary waiting period applies to all recipients of job seeker payment and is applied as a period of seven days starting on a person’s ‘start day’. The applicant’s start day for job seeker payment was the day after the conclusion of the period of his liquid assets waiting period. The applicant’s ordinary waiting period was correctly applied for the period 30 May 2023 to 5 June 2023.[10]
[10] Centrelink documents p 112.
On that basis the applicant was correctly paid job seeker payment from 6 June 2023.
Income maintenance waiting period
Section 1068 of the Social Security Act provides the rate calculator for job seeker payment. Subsection 1068-G7AH deems a person to receive ordinary income for a period equal to the period to which certain termination payments relate and states if:
(a) a person's employment has been terminated; and
(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);
the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
An employment separation certificate was provided to Centrelink from a tapware company at which the applicant had been employed and was dated 27 February 2023.[11] The certificate provides that the reason for the employment separation as ‘wilful and deliberate dishonest behaviour and refusal to perform role.’ The certificate recorded the applicant’s final gross pay as $5,267.00 and that he had been paid 19 days leave entitlement.
[11] Centrelink documents pp 38-39.
At the hearing the applicant submitted that the certificate from his former employer was not correct and that he had subsequently appealed to the Fair Work Ombudsman regarding his unlawful termination. He stated that a hearing that the appeal had been scheduled to be held on 2 August 2023. On the day prior to that hearing, the applicant was sent a letter saying that the employer was revoking all allegations against him and would be compensating him the at the maximum amount of 26 weeks’ worth of payments for unfair dismissal. The applicant states the matter was settled and the hearing with the Fair Work Ombudsman did not proceed.
The Centrelink documents contained a letter from the same employer dated 17 August 2023 in which the employer stated[12]:
We withdraw any allegations of serious misconduct on your part during your employment at [the employer]
We confirm your employment ceased with [the employer] on 27 February 2023 by way of
termination at the initiative of [the employer].
[12] Centrelink documents p 86.
On 12 September 2023, Centrelink was provided with another employment separation certificate from the same employer dated 29 August 2023.[13] The certificate recorded the reason for employment separation as ‘termination by employer.’ In response to the question:
On termination, did you pay or will you pay the person, any unused leave entitlements or final gross redundancy?
[13] Centrelink documents pp 87 -89.
Under the category of ‘other’ it was noted that the applicant received $27,326.00.
Based on that employment separation certificate, Centrelink proceeded to determine that the applicant received a termination payment of $27,326.00 and imposed an income maintenance period of 130 working days.[14] The income maintenance period commenced on 29 August 2023 and ended on 26 February 2024.[15]
[14] Centrelink documents p 99.
[15] Centrelink documents p 97.
The applicant provided a written statement to Centrelink on 21 December 2023.[16] He relevantly stated:
… My application was rejected without reason while it was being evaluated Now that my employer has withdrawn the charges against me, please correct your mistake and compensate me and my wife for our losses.
My former employer lost an unfair dismissal case. When accompanying the payment of $27,326, I deliberately did not write down the specific content of the compensation I stated my requirements and the consequences of non-cooperation in letters to him on 02/11/2023 and 16/11/2024. Legally he has given up his rights. The specific content of this compensation now is redundancy $10510, in lieu of notice $6306 . unfair dismissal $10510. Total is $27326.These are the compensations I have received for 5 years of work Not salary income. Therefore it is wrong for you to stop my payment Please change it.
[16] Centrelink documents p 90 – 91.
In summary, the applicant submits that the amount of $27,326.00 was mistakenly treated by Centrelink as part of his income when it was in fact compensation. In that regard the applicant relies on an extract regarding how to report employment termination payments when lodging a return using myTax.[17] The applicant makes submissions that based on income assessment laws his payment for unfair dismissal should not be considered as part of the income payments. However, the test in relation to income for taxation purposes is not the relevant test for determining whether the amounts paid were termination payments for the purposes of qualification for jobseeker payment. At the hearing the applicant was asked about the breakdown of payments that he had provided in his letter dated 21 December 2023. He stated that the breakdown was provided by his accountant and that he had just written it down based on his accountant's advice and that it is his understanding that it was the total amount of $27,326 was for unfair dismissal.
[17] Exhibit 4 pp 2 -9
In determining what can be considered a termination payment, subsection 1068-G7AQ of the Social Security Act defines what may be considered a termination payment:
"termination payment" includes:
(a) a redundancy payment; and
(b) a leave payment relating to a person's employment that has been terminated; and
(c) any other payment that is connected with the termination of a person's employment.
It is not in dispute that the applicant was terminated from employment. The fact that the applicant’s employer later withdrew allegations of serious misconduct or that the applicant came to a settlement with his employer, does not change the fact that the applicant was terminated by his employer. The subsequent employment separation certificate dated 29 August 2023 recorded the reason for separation as termination by employer.[18]
[18] Centrelink documents p 88
The term ‘termination payment’ is defined broadly in subsection 1068-G7AQ. It includes any ‘other payment’ that is connected with the termination of a person's employment and is not limited to only entitlements. The payment of $27,326 was connected with the applicant’s termination. On that basis, tThe Tribunal finds that an income maintenance period did apply to the applicant.
Section 1068-G7AKA of the Social Security Act provides that in determining the length of a person’s income maintenance period:
1068 - G7AKA: Subject to point 1068 - G7AKC, if the person is covered by point 1068 - G7AH, the income maintenance period starts, subject to point 1068 - G7AKB, on the day the person is paid the termination payment.
The employment separation certificate records that the applicant received his termination payment on 29 August 2023.[19] Therefore the income maintenance period correctly commenced from 29 August 2023.
[19] Centrelink documents p 89
Section 1068-G7AI of the Social Security Act provides exceptions can apply where a person is also subject to a liquid asset waiting period at the same time. However, the liquid assets waiting period ended on 29 May 2023 and had been completed by the time the applicant received his termination payments on 29 August 2023, and so he was not ‘subject to’ the liquid assets waiting period. The exception has no application in this instance.
The Tribunal finds that the income maintenance period was correctly calculated and applied in accordance with the Social Security Act.
Severe Financial Hardship
Section 19C of the Social Security Act provides that the liquid assets waiting period, the ordinary waiting period and the income maintenance period can be waived in circumstances of sever financial hardship. The term severe financial hardship relevantly applies to:
(a) ordinary waiting periods; and
(b) liquid assets test waiting periods; and
(c) seasonal work preclusion periods; and
(d) income maintenance periods.
…
Meaning of in severe financial hardship : person who is a member of a couple
(3) A member of a couple who makes a claim for parenting payment, jobseeker payment, austudy payment, special benefit, disability support pension, carer payment or one of the following allowances:
…
is in severe financial hardship if the value of the couple's liquid assets (within the meaning of subsections 14A(1) and (2)) is less than twice the fortnightly amount at the maximum payment rate of the payment, benefit, pension or allowance that would be payable to the person:
(f) if the person's claim were granted; and
(g) in the case of a person to whom an income maintenance period applies, if that period did not apply.
As of 28 February 2023, the applicant and his wife had $69,212 in their Commonwealth bank account. The applicant then received an additional $27,362 on 29 August 2023. There is nothing on the evidence which demonstrates that the applicant would meet the criteria for severe financial hardship contained in s 19C.
The Tribunal acknowledges that the applicant’s second income maintenance period commenced after his liquid assets waiting period had been served. That was because of the delayed payments from his employer. However, that delay does not alter the position that the applicant was not in severe financial hardship as prescribed in s19.
Conclusion
The Tribunal finds that the applicant was subject to a liquid assets and ordinary waiting period until 5 June 2023. The Tribunal also finds that the payment of $27,326 received by the applicant on 29 August 2023 was a termination payment for the purposes of the Social Security Act, and an income maintenance period was applicable for the period 29 August 2023 to 26 February 2024.
The evidence does not support that any portions of those periods should have been reduced due to sever financial hardship.
DECISION
The Tribunal affirms the decisions under review.

Date(s) of hearing: 5 May 2025

Applicant: Self-represented

Counsel for the Respondent: T Colmer, Services Australia

[2025] ARTA 1147

28 July 2025

Key Legal Topics

Areas of Law

Administrative Law

Legal Concepts

Jurisdiction

Judicial Review

Natural Justice & Procedural Fairness

Date(s) of hearing:	5 May 2025
Applicant:	Self-represented
Counsel for the Respondent:	T Colmer, Services Australia