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

This matter concerned an appeal to the Social Services and Child Support Division of the Tribunal regarding the assessment of the applicant's assets for the purpose of calculating his age pension. The respondent, the Secretary of the Department of Social Services, had included the value of "deprived attributable assets" of a company, amounting to $150,666, in the applicant's assessable assets. This decision impacted the rate of age pension payable to the applicant.

The Tribunal was required to determine two primary issues: firstly, whether the applicant was an "attributable stakeholder" of the company until 12 December 2019, or another relevant date; and secondly, whether the applicant had deprived himself of the attributable assets of the company. These determinations were crucial for applying the provisions of the *Social Security Act 1991* (Cth) concerning the assets test and the calculation of the age pension rate.

The Tribunal reasoned that the applicant was indeed an attributable stakeholder of the company because the "control test" was satisfied, given his son held a 50% or more direct voting interest in the company. Under the Act, an attributable stakeholder is generally deemed to have a 100% asset attribution percentage in the company's assets unless the Secretary determines otherwise. The Tribunal found that the applicant had deprived himself of these assets by transferring his shares in the company to his son and later to his son's wife without receiving any consideration. Consequently, the value of these deprived assets, less an allowable amount of $10,000, remained assessable for the purposes of the assets test for five years from the date of disposal, as provided by the Act. The Tribunal affirmed the decision of the Administrative Appeals Tribunal (ARO) which had affirmed the respondent's decision.