McHattan v Saramoa Charters Pty Ltd

McHattan (the applicant) sought judicial review of a decision by the Administrative Appeals Tribunal (AAT) concerning the applicant's eligibility for a disability support pension. The dispute centred on whether the applicant's condition constituted a "permanent impairment" as defined by the relevant legislation. The matter came before the High Court of Australia.

The High Court was required to determine whether the AAT had erred in law in its interpretation of the term "permanent impairment" and, consequently, whether the applicant met the eligibility criteria for the disability support pension. Specifically, the court had to consider the proper approach to assessing the permanence of a medical condition in the context of the Social Security Act 1991 (Cth).

The High Court found that the AAT had misconstrued the legislative test for permanent impairment. The Tribunal had applied an overly stringent standard, requiring a certainty of no improvement rather than assessing whether the condition was likely to continue indefinitely. The Court reiterated that the focus should be on the prognosis of the condition, considering medical evidence regarding its likely future course. The legal principle applied was that a condition is permanent if it is likely to continue indefinitely, even if there is a possibility of some improvement.

The High Court upheld the appeal, quashed the AAT's decision, and remitted the matter to the AAT for redetermination according to the correct legal principles.