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

This matter concerned an application by the Applicant for review of a decision by the Department of Social Services, affirmed by an Authorised Review Officer, that the Applicant owed a recoverable Newstart Allowance debt of $21,990.42 for the period between February 2008 and April 2010. The Applicant disputed that various payments received during this period should be treated as income under the Social Security Act 1991. The Applicant had previously operated a cleaning business, owned a house where he rented out rooms, and was pursuing university studies, managing his financial affairs in a complex manner.

The central legal issue before the Tribunal was whether specific amounts deposited into the Applicant's bank accounts constituted "income" as defined by section 8(1) of the Social Security Act 1991, or if they fell within any of the excluded categories under subsections 8(4), (5), or (8) of the Act. This required the Tribunal to consider the nature of various receipts, including rental income from boarders, proceeds from the sale of domestic items, payments from the Applicant's sister, and payments from his parents.

The Tribunal applied the Respondent's Guide to Social Security Law, specifically clause 4.3.8.40, to determine that rental income from boarders should generally be treated as 70% income, less any interest paid on a registered mortgage. Security bonds received from boarders were not to be treated as income. Proceeds from the sale of domestic items, provided they did not appear on tax invoices from the Applicant's former cleaning business, were to be excluded as income. However, the Tribunal found the evidence regarding payments from the Applicant's sister to be unclear and insufficient to establish an exclusion from the definition of income. Regarding payments from the Applicant's parents, the Tribunal accepted that the first payment of $4,982, if within the relevant period, should be treated as rental income under an accommodation agreement. The Tribunal noted that the exclusions under subsections 8(4), (5), and (8) were limited.

The Tribunal set aside the previous decision and remitted the matter to the Respondent for reconsideration, directing that the specific determinations made regarding rental income, domestic payments, and payments from the Applicant's parents be applied.