The Estate of the late Christine Manning and Secretary, Department of Health (Social services)

The Administrative Appeals Tribunal considered a dispute concerning the assessment of income for residential aged care purposes. The parties were the Estate of the late Christine Manning and the Secretary, Department of Health (Social Services). The core of the dispute involved whether deemed income from account-based income streams should have been included in Mrs Manning's income assessment, particularly following changes introduced by the Social Security and Other Legislation Amendment Act 2014.

The Tribunal was required to determine the correct method for assessing Mrs Manning's total assessable income for aged care purposes, specifically in light of her entitlement (or lack thereof) to an income support payment. This involved interpreting the provisions of the Aged Care (Transitional Provisions) Act 1997 and the Social Security Act 1991, particularly concerning the definition of "income support payment" and the calculation of "ordinary income" from financial assets, including income streams. The Tribunal also considered whether any exceptions under the Aged Care (Transitional Provisions) Principles 2014 applied.

The Tribunal reasoned that as Mrs Manning was not entitled to an income support payment (defined to include an age pension), her total assessable income was to be determined under section 44-24(1) of the Aged Care (Transitional Provisions) Act 1997. This provision directs that assessable income is to be calculated in accordance with Module E of section 1064 of the Social Security Act 1991, which deals with the ordinary income test and includes provisions for income from financial assets like account-based income streams. The Tribunal found that the exceptions outlined in the Aged Care (Transitional Provisions) Principles 2014 were not applicable to the circumstances of the case, a position not disputed by the applicant.

The Tribunal affirmed the decision under review.