Paunovic and Australian Capital Territory (Compensation)

The Administrative Appeals Tribunal (AAT) considered an application by Mr Paunovic for compensation under the *Safety, Rehabilitation and Compensation Act 1988* (SRC Act) following an assault by his supervisor in 2017. The Australian Capital Territory (ACT) had initially denied liability for Mr Paunovic's claimed adjustment reaction with anxious mood, deeming it a result of reasonable administrative action. However, the ACT subsequently reconsidered its decision on its own motion, accepting liability for the injury after receiving new evidence. Mr Paunovic's employment with Roads ACT had been terminated in 2018 following allegations of sexual harassment, which he denied.

The primary legal issues before the Tribunal were whether the ACT's 'own motion' reconsideration of its determination was validly made and whether the Tribunal retained jurisdiction to consider the matter. The Tribunal also had to determine if Mr Paunovic's application should be dismissed under section 42B(1)(a) of the *Administrative Appeals Tribunal Act 1975* (AAT Act) as frivolous, vexatious, misconceived, or lacking in substance.

The Tribunal found that the ACT's 'own motion' reconsideration was validly made under section 62(1) of the SRC Act, particularly in light of new evidence and following a conciliation conference. It determined that the ACT had acted as a model litigant by accepting liability for Mr Paunovic's injury, thereby making the ACT liable to pay him compensation under the SRC Act. The Tribunal also confirmed it retained jurisdiction, following established precedent. Given that the ACT had accepted liability and Mr Paunovic could now make claims for compensation, the Tribunal concluded that there was no further benefit it could provide in relation to his application.

Consequently, the Tribunal dismissed Mr Paunovic's application for review as vexatious under section 42B(1)(a) of the AAT Act. The Tribunal further ordered that the ACT pay Mr Paunovic's reasonable costs of the application in the Tribunal, pursuant to section 67(2) of the SRC Act.