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

The Administrative Appeals Tribunal considered the matter of Parton and the Secretary, Department of Social Services. The dispute concerned the assessment of the proceeds from the sale of Mr and Mrs Parton's former principal home as an asset for the purposes of calculating their age pension. The core of the disagreement lay in whether these proceeds qualified for an exemption under the relevant social security legislation.

The Tribunal was required to determine whether the sum of $179,710, representing the residue from the sale of the Partons' former home, should be treated as an assessable asset for the purposes of their age pension entitlement. Specifically, the Tribunal had to consider the application and interplay of the 24-month assets exemption provisions, particularly subsections 1118(1B) and 1118(2B) of the relevant Act, in circumstances where delays in renovating another residence were beyond the Partons' control.

The Tribunal reasoned that once the initial exemption under subsection 1118(1B) expired on 22 March 2021, the subsequent exemption provided by subsection 1118(2B) could not be activated. This interpretation meant that the residue of $179,710 was not considered an exempt asset. Consequently, the decision under review, which treated the proceeds as assessable, was affirmed.