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

The Administrative Appeals Tribunal (AAT) considered the case of Rettay and the Secretary, Department of Social Services, concerning the applicant's entitlement to an age pension. The dispute arose from the Department's decision to cancel the applicant's age pension, initially granted on 20 September 2016, on the grounds that her total assets exceeded the allowable limit. Despite a previous AAT decision remitting the matter for reconsideration, a subsequent decision on 3 January 2019 affirmed the cancellation, and a further decision on 5 May 2020 granted the pension only from 25 January 2019, not retrospectively. The applicant sought review of these decisions, arguing for entitlement from 20 September 2016.

The primary legal issues before the Tribunal were whether a loan made by the applicant constituted an assessable asset for the purposes of the age pension assets test, and if so, whether its value, when combined with other assets, exceeded the statutory limit. The Tribunal also had to determine the correct date from which the applicant was entitled to the age pension, considering previous decisions and the effect of an "unrealisable" loan.

The Tribunal reasoned that under section 1122 of the Social Security Act 1991, a loan made after 27 October 1986 is considered an asset to the extent that it remains unpaid. The Tribunal found that the loan in question was an assessable asset as at 20 September 2016. Applying the relevant asset value limit, the Tribunal concluded that the applicant's total asset value, including the loan, exceeded the permissible threshold, rendering her ineligible for the age pension from that date.

Consequently, the Tribunal affirmed the reviewable decision of the AAT dated 29 July 2020, which in turn affirmed the Department's decisions of 3 January 2019 and 5 May 2020. This meant the applicant was not entitled to the age pension from 20 September 2016, and her entitlement only commenced from 25 January 2019.