Nelson, M.W. v Department of Social Security

Case [1986] FCA 598


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- appeal from declslen of the kdmlnlstratlve

: ' - ~ p ? a l t ;

Tt-~~.l:731

a f C 1 c m l y dec l .2

,r

Irder ? o r ~ 3 1

Ceyurlty- .It

1947

to reduce lnvalld pension of appellant - motlon by respondent for

dismissal of

appeal as incompetent

- whether notice

of

appeal

discloses question of law

Bdministratlve Appeals Tribunal Act 1975 s.44(1)

Social Securitv Act 1947

ss.6(1), 15A(1), 28

ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL

CONSTITUTED BY MR. R.D. NICHOLSON DEPUTY PRESIDENT

MICHAEL WILLIAM NELSON

v. THE SECRETARY, DEPARTMENT OF SOCIAL SECURITY

c

No. W G97 of 1986

FEDERAL COUaT OF

B O W C.J.,

TOOHJZY & FRENCH JJ.

PERTH

10 DECEMBER 1986

IN THE FEDERAL COURT

I

OF AUSTRALIA

I

WESTERN

AUSTRALIA

l

No. WA G97 of 1986

DISTRICT REGISTRY

I

GENEKAL DIVISION

I

ON APPEAL from the Adminlstrative

Appeals Tribunal constltuted

by

Mr. R.D. Nicholson Deputy Presldent

B E T W E E N :

MICHAEL WILLIAM NELSON

Applicant

and

THE SECRETARY, DEPARTMENT

OF SOCIAL SECURITY

Respondent

MINUTE OF

ORDER

c

JUDGES MAKING ORDER: Bowen C.J., Toohey and French JJ.

DATE OF ORDER:

10 December 1986

WHERE MADE:

Perth

THE COURT ORDERS THAT:

The appeal

is dismissed as incompetent.

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IH THE FEDERAL COURT

,

OF

AUSTFALIA

I

WESTERN AUSTWIA

l

N O .

6iA G 9 i of

1986

DISTRICT REGISTRY

I

GENERAL DIVISION

I

ON AFFEAL from the Administrative

Appeals Tribunal constituted

by

Mr. R.E. Nicholson Deputy Presldent

B E T W E E N :

MICHAEL WILLIAM NELSON

Applicant

and

THE SECRET-Y, DEPARTMENT

OF SOCIAL SECURITY

Respondent

,

,: 7 , '

&:.

1; k e n

C.J. , Toohey and French

JJ.

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December 1986

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REASONS FOR JUDGMENT

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, ',-. '.G?Mr. Nelson

has

appealed

from

a decision of

the

. .

.

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Adm'iriistirbtive Appeals

Tribunal.

That decision

affirmed

a

.

r

decision'if

an officer of the Department

of Social Security, made

pursuant to s . 2 8

of the Soclal Security Act

1947, to reduce the

rate of Mr. Nelson's invalid pension.

There 1s a motion

by the respondent that the appeal be

dismissed

as

incompetent.

This

turns

on the

requirement

in

sub-s.44(1) of the Administrative Appeals Tribunal Act

1975 that a

party to a pcoceedlnu before the Trlbunal mav appeal to the Federsl Court "on a questlon of law". In the respondent's

submlsslon. no question

of

law

1 s disclosed by the

notice of

appeal or by a supplementary

document

flled

by

Mr. Nelson

containlng grounds of appeal.

The

notlce

of

appeal

sets

out

in

four

numbered

paragraphs what are said to be the questions of law raised by the

appeal. In our

m e w none of the

so

called questlons of law

1s

raised by the appeal. Mr. Nelson's pension was reduced because of

the n e w taken by the department to include in his income interest

from bank accounts in the name of Kingdom Management Community.

In affirming the departmental decision, the Tribunal said:

"The Invested funds on which interest is earned are

maintained in

an

account styled

as directed by the

Applicant from time to time and for which the Applicant

is the signatory. The Cornunity is not

an incorporated

apparent it is subject to management and control by the

Applicant. In the final analysis the Community is the

Applicant. There is no legal separation between the

entity and has no separate legal existence. It is earned on funds invested in the name of the Community

are likewise for the use and benefit of the Applicant".

-

The

matter

came

before

the

Tribunal

pursuant

to

sUb-s.l5A(l) of the Social Security Act. The references in the

.

notlce of appeal to the Administrative Decisions (Judicial Review)

&

A

1977 mistake the nature of the jurisdiction exercised by the

Tribunal. The Tribunal

was

requlred to make

the

correct

or

preferable declslon on the application before it and it concluded

that the declslon under teview should be affl.rrned. The

questions

of law rnrntloned In

the notice of appeal do not arlse from the

Trlbunal 5 declslon.

The urounds of appeal ranue over

a number of matters

mcludlnu the status of Kmgdom Management

Communlty

as

a

rellqion.

But

the Trlbunal's

decision

did

not

turn

on

the

questlon whether the Community was a religlous body. It turned on

the application of the definition of "lncome" in

sub-s.6(1) of the

Social Securitv Act which reads:

"'income'.

in

relation

to

a

person,

means

personal

earnings. moneys, valuable consideration or profits

earned, derived

or

received by that person for the

person's own

use

or benefit by any means from any

source whatsoever, within

or

outside Australia, and

includes a periodical payment

or benefit by way of gift

r

or

allowance, . . .

"

The Tribunal concluded that interest earned on accounts

in the name of Kingdom Management Community were moneys derived

or

received by Mr.

Nelson for his owr.

use or benefit and therefore

constituted income within the meaning

of the Act. This was

a

finding of fact and does not give rise to

a question of law.

In the course of

Mr. Nelson's submissions, reference was

made to the moneys invested in the name of Kingdom Management

Communlty. For the most part these moneys were invested on fixed

term wlth interest accruina quarterly and compounded thereafter.

In its reasons for decislon. the Tribunal spoke in general terms

4 .

of lnterejt 2arned un the a8:counts.

No questlon appears to

have

arisen brf8,t-e

the TLlbunal as ts whether moneys were

m fact

derived or recelved

by

any

person

durlnu

the terms of the

lnvestments and

no such questlon was ralsed by

the

notlce

of

appeal or by

any

of the

other

documents

flled

on

behalf

of Mr. Nelson.

We accept the submisslons of the respondent that no

question of law arises out of the Tribunal's decision and

that

none is disclosed by the notice of appeal or supporting documents.

The appeal must therefore be dismissed

as incompetent.

I certify

that

this and the

preceding 3 pages are a true copy the of reasons for judgment herein of the Court.

r

- -

Associate

Dated: 10 December

1986

Counsel for the applicant:

.

Applicant appeared in person

Counsel for the respondent: Ms. C. Francas instructed by

Australian Government Solicitor

Date of hearing:

9 December 1986

Details
AGLC
Nelson, M.W. v Department of Social Security [1986] FCA 598
Case
[1986] FCA 598
Decision Date

CaseChat Overview and Summary

The Federal Court of Australia, in the case of Michael William Nelson v The Secretary, Department of Social Security, heard an appeal by Mr. Nelson against a decision of the Administrative Appeals Tribunal (AAT). The AAT had affirmed a decision by an officer of the Department of Social Security to reduce Mr. Nelson's invalid pension, a decision based on the inclusion of interest from bank accounts in the name of Kingdom Management Community as part of his income. The respondent, the Department of Social Security, moved to dismiss the appeal as incompetent, arguing that the notice of appeal did not disclose a question of law as required by section 44(1) of the Administrative Appeals Tribunal Act 1975.

The court had to determine whether the notice of appeal and the accompanying documents indeed disclosed a question of law that warranted an appeal to the Federal Court. The Tribunal's decision did not hinge on whether Kingdom Management Community was a religious body, but rather on the interpretation of "income" under section 6(1) of the Social Security Act 1947, which the Tribunal found to include interest earned on accounts in the name of Kingdom Management Community. This interpretation was a finding of fact, not a question of law, and thus did not satisfy the legal criteria for appeal.

The court found that the appeal was indeed incompetent as it did not disclose a question of law. The appeal was dismissed, and the decision of the AAT was upheld. The court's reasoning was that the issues raised in the appeal were factual rather than legal, and therefore did not meet the threshold for judicial review under the Administrative Appeals Tribunal Act 1975. The appeal was dismissed as incompetent, and no further orders were made.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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