Liu and Comcare (Compensation)

This matter concerned an application for merits review by Ms Liu of a decision made by Comcare. The dispute centred on whether Ms Liu suffered a psychological ailment as a result of reasonable administrative action taken in a reasonable manner in respect of her employment, which would preclude her from receiving compensation under the *Safety, Rehabilitation and Compensation Act 1988* (Cth) (SRC Act). The Administrative Appeals Tribunal (AAT) was required to determine this question.

The legal issues before the Tribunal were whether the performance appraisal and management process undertaken between February and April 2014 constituted reasonable administrative action taken in a reasonable manner. Specifically, the Tribunal had to consider if this process was the cause of Ms Liu's psychological ailment and, if so, whether it was an event without which her ailment would not have occurred, thereby engaging the exclusionary provisions of section 5A of the SRC Act.

The Tribunal reasoned that Ms Liu had been generally content in her role prior to February 2014, with her performance being satisfactory, although a previous rating indicated some concerns. The administrative actions in question arose from the arrival of a new supervisor and the crystallisation of a PDS expectation that Ms Liu would lead the preparation of a disciplinary aspect of a project. The Tribunal found that this responsibility was consistent with her duty statement and that Ms Liu's belief that the duty statement should align with her abilities, rather than the reverse, was misplaced. The subsequent intensive interaction between Ms Liu and her supervisors regarding specific projects was viewed as an attempt to transition her to the foreshadowed level of responsibility, with supervisors offering support. The Tribunal concluded that the process of addressing Ms Liu's responsibilities, including the communication that performance management was appropriate due to difficulties in meeting her duty statement, was reasonable administrative action taken in a reasonable manner.

The Tribunal found that the employment-related events between February and April 2014 were the sole contributors to Ms Liu's ailment. As these events constituted reasonable administrative action taken in a reasonable manner, the Tribunal concluded that Ms Liu would not have suffered her ailment but for this action. Consequently, the reviewable decision of 15 September 2016 was affirmed.