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

This matter concerned an appeal by Miss Panetta to the Administrative Appeals Tribunal (AAT) regarding a decision by the Secretary, Department of Social Services, to raise a legally recoverable debt of $27,124.89. The debt arose from overpayments of Disability Support Pension (DSP) made to Miss Panetta between 24 July 2011 and 23 July 2013, due to her failure to notify the Department of income protection payments she received from TAL Life Ltd.

The primary legal issues before the Tribunal were whether Miss Panetta had provided sufficient notification to the Department regarding her income protection payments, and consequently, whether the calculation of the overpayment and the resulting debt were correct. Miss Panetta contended that she had informed the Department of these payments and was advised they did not need to be disclosed as they were not earned income. She also argued that she faced significant financial hardship due to medical conditions and associated costs.

The Tribunal found that the calculation of the overpayment was correctly made in accordance with the Social Security Act 1991, as ordinary income reduces the rate of DSP payable. While accepting that not all general inquiries to Centrelink are recorded, the Tribunal found it implausible that Miss Panetta's multiple contacts with the Department regarding her income would not have been recorded or raised a flag concerning the impact of her significant fortnightly income on her DSP entitlement. The Tribunal noted that Miss Panetta acknowledged receiving income protection payments and, when asked directly, confirmed she knew these were distinct from superannuation. The Tribunal concluded that the debt was legally recoverable.

The Tribunal affirmed the decision under review, finding that while Miss Panetta incurred additional medical costs, the weekly debt recovery payment of $7.50 from her DSP was not onerous and was reasonable given the substantial overpayment.