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

The Administrative Appeals Tribunal considered the case of Lee and the Secretary, Department of Social Services, concerning the suspension of the applicant's Newstart allowance. The applicant had ceased employment and subsequently received a payment described as an "Employment Termination Payment" following a successful unfair dismissal claim. This payment led to the suspension of his Newstart allowance due to the operation of an income maintenance period.

The primary legal issue before the Tribunal was whether the payment received by the applicant constituted a termination payment that should enliven an income maintenance period, thereby justifying the suspension of his Newstart allowance. The applicant argued that the payment was a legal remedy for unfair dismissal and not income derived from employment or a termination payment in the traditional sense, contending that it was not accrued during employment or due upon dismissal.

The Tribunal found that no submissions or evidence were presented to suggest that the income maintenance period had been improperly calculated or that the applicant had experienced severe financial hardship, which would have allowed for a waiver of the period under section 1068-G7AM of the Social Security Act 1991. Consequently, the decision under review, which suspended the Newstart allowance, was affirmed.