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

This matter concerned an appeal by the applicant, Phelan, against a decision of the Secretary of the Department of Social Services regarding the calculation of their Newstart allowance. The core of the dispute revolved around whether the notices provided by the Department regarding changes to the applicant's Newstart allowance rates were legally sufficient under the *Social Security (Administration) Act 1999* (Cth). The applicant contended that these notices were defective because they failed to specify the date of effect, did not explicitly use the term "rate," and did not itemise the various components that constituted their Newstart allowance. The Administrative Appeals Tribunal was tasked with determining the validity of these notices.

The Tribunal was required to consider whether the notices issued by the Department were "fatally defective" for the purposes of section 109 of the *Social Security (Administration) Act 1999* (Cth). Specifically, the Tribunal had to determine if the notices were inadequate because they did not provide a detailed breakdown of the Newstart allowance components, nor did they clearly state the specific date from which the new rate applied. The applicant argued that for a notice to be effective, it must clearly communicate the decision made and its content, including the specific rate of allowance payable.

In its reasoning, the Tribunal considered the purpose of section 109, which is to inform a recipient of a decision and any change to their payment. The Tribunal noted that the legislation requires the specification of the new rate but does not mandate the inclusion of reasons for the decision. Drawing on previous decisions, the Tribunal found that a notice is not defective simply because it does not contain itemised components or reasons for the change, provided the recipient is adequately informed of the new rate. The Tribunal concluded that the notices provided were sufficient to inform the applicant of the new rate of Newstart allowance, and therefore, the applicant's contention that the notices were fatally defective was rejected. The Tribunal set aside the previous decision and substituted its own.