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

This matter concerned an application by the Applicant, Paget, for a review of a decision by the Secretary, Department of Social Services, concerning the application of the asset test to the Applicant's age pension entitlement. The core of the dispute revolved around whether the Applicant had disposed of assets for inadequate consideration, thereby impacting their pension.

The legal issues before the Tribunal were whether the Applicant's transfers of funds constituted a disposal of assets under section 1123 of the *Social Security Act 1991* (Cth), and if so, whether the consideration received was adequate in "money or money's worth." Specifically, the Tribunal had to determine the meaning of "money's worth" in this context and whether the Applicant's time spent with loved ones could be considered adequate consideration.

The Tribunal reasoned that for a disposal of assets to be captured by section 1123, the consideration received must be in "money or money's worth" in the legal sense, as established in *Re Georgina Frendo*. This means the consideration must be something that would be recognised in contract law as sufficient to establish a bargain, such as an act, forbearance, or promise that creates an enforceable right. The Tribunal found that the Applicant's transfers were not disposals of assets as defined by section 1123 because there was no legally recognised consideration received in return. The Tribunal noted that a family understanding for future accommodation did not constitute an immediate benefit or an enforceable future right.

Consequently, the Tribunal set aside the Reviewable Decision and substituted it with a decision that the Applicant's transfers of funds were not disposals of assets under section 1123 of the Act. The Tribunal directed that the Applicant's aged pension entitlement be recalculated accordingly.