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

This matter concerned an application for review of a decision by Services Australia, affirmed by the Social Services and Child Support Division of the Tribunal, which rejected Mr Wayne Scott's claim for a disability support pension. The rejection was based on Mr Scott being subject to a compensation preclusion period from 26 June 2019 to 6 June 2023, calculated due to lump sum compensation payments received for a workplace injury. The review was heard by Dr L Bygrave, Member, of the General Division of the Tribunal.

The Tribunal was required to determine two primary issues: first, whether Mr Scott was subject to a compensation preclusion period and if it had been correctly calculated by Services Australia; and second, whether special circumstances existed to justify waiving all or part of this preclusion period. The rationale for compensation preclusion periods, as outlined in the Social Security Act 1991 and the Social Security Guide, is to ensure that individuals compensated for lost income use that compensation for living expenses rather than receiving income support from both the social security and compensation systems concurrently.

The Tribunal found that Mr Scott was indeed subject to a compensation preclusion period. This was based on his receipt of periodic compensation payments and two lump sum payments totalling $417,500 in relation to a workplace injury sustained in 2003, with the compensation part of these payments being $208,750. The preclusion period was calculated as 206 weeks, commencing on 26 June 2019 and ending on 6 June 2023. Crucially, the Tribunal determined that special circumstances existed within the meaning of section 1184K of the Act. This conclusion was reached because Mr Scott's current circumstances were considered out of the ordinary, and he had no alternative means of financial support apart from social security payments.

Consequently, the Tribunal set aside the decision under review. In substitution, it decided to waive the compensation preclusion period for Mr Scott from 1 July 2021 to 6 June 2023, pursuant to section 1184K of the Act.