Pett and National Disability Insurance Agency

This matter concerned an application for review of a decision by the National Disability Insurance Agency (NDIA) regarding the applicant's NDIS plan. The applicant sought a review of her NDIS plan, which had been varied following an internal review. The core dispute revolved around whether compensation received by the applicant from two personal injury claims should be treated as a "compensation reduction amount" (CRA) under section 11 of the National Disability Insurance Scheme Act 2013, and if so, how that amount should be calculated and applied to reduce her NDIS supports. The application was heard by Senior Member B J Illingworth.

The Tribunal was required to determine two primary legal issues. Firstly, whether the settlement monies received by the applicant from each of her civil actions constituted a compensation reduction amount as defined by section 11 of the Act. Secondly, if a compensation reduction amount was applicable, the Tribunal needed to determine the correct method for calculating this amount in relation to each settlement sum and how it should be applied to reduce the participant's funded supports under the NDIS plan.

The Tribunal's approach involved a bifurcated hearing process to accommodate the applicant and her husband, who were not legally trained and had health issues. The first hearing focused on the definition of a compensation reduction amount, and the second on the calculation and application of such an amount. The NDIA provided an internal document and a detailed spreadsheet to assist the applicant in understanding the calculation methodology. The Tribunal repeatedly clarified that it did not have the power to order legal costs and that the proceedings would not be split into separate hearings with interim decisions. The applicant was given opportunities to seek legal advice and representation throughout the process.