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

This matter concerned an appeal by Mr Sinclair against the cancellation of his Age Pension from 17 May 2019. The dispute centred on the valuation of his property, Northbank, and whether its value exceeded the maximum allowable asset limit for Age Pension eligibility. Mr Sinclair and his late wife purchased Northbank, a 54.52-hectare property, in 2001, and it remained his principal place of residence.

The Administrative Appeals Tribunal was required to determine the value of Mr Sinclair's land that was not exempt from the assets test and whether this value rendered him ineligible for the Age Pension. Specifically, the Tribunal had to consider the definition of a "principal home" under the Social Security Act 1991 and how much of the Northbank property qualified for exemption from asset assessment.

The Tribunal reasoned that while Mr Sinclair's principal home, including the dwelling and surrounding land up to two hectares used for private purposes, was an exempt asset, the remaining portion of the 54.52-hectare property was not. This was because only the smaller area satisfied the "private land use test" under subsection 11A(3) of the Act. Consequently, the value of the land exceeding two hectares was an assessable asset. The Tribunal accepted an independent market valuation of the assessable land at $250,000, which, when added to Mr Sinclair's other assessable assets, exceeded the maximum allowable limit.

The Tribunal affirmed the decision under review, finding that Mr Sinclair was ineligible for the Age Pension due to his total assessable assets exceeding the prescribed limit. The Tribunal noted that the "extended land use test" might apply to the entire property from August 2021, potentially altering his eligibility at that future time.