The Estate of Veronika Komaromi and Secretary, Department of Social Services (Social services second review)

This matter concerned an appeal to the Administrative Appeals Tribunal regarding the cancellation of an age pension. The applicant, Veronika Komaromi, had been receiving an age pension since 2002. Her principal home, the Willoughby property, was exempt from the assets test for two years after she moved into aged care in July 2019. However, the Department of Social Services (the Agency) subsequently determined that the value of her assets, including the Willoughby property, exceeded the allowable limit, leading to the cancellation of her pension from July 2021. Following her death, her executor, Mr. Peter Komaromi, sought to have her pension reinstated, arguing the Willoughby property was an unrealisable asset and that hardship provisions should apply.

The Tribunal was required to determine whether the cancellation of Ms. Komaromi's age pension was in error, specifically whether the Willoughby property should have been disregarded as an unrealisable asset, and whether the hardship provisions could be applied retrospectively. The Agency had initially requested information about the Willoughby property in June 2021, and despite Mr. Komaromi's explanation that the property was destroyed in a storm and documents were lost, the Agency proceeded to calculate Ms. Komaromi's assets. This calculation, which included the Willoughby property, resulted in her exceeding the asset limit for the age pension.

The Tribunal reasoned that the Agency could not disregard the Willoughby property as an unrealisable asset until a formal application for consideration under the asset hardship provisions was made. Therefore, as of July 2021, the property was correctly assessed as an asset, and Ms. Komaromi was ineligible for the age pension. The Tribunal noted that while Mr. Komaromi subsequently lodged a hardship claim and reapplied for the pension, which was then granted from August 2022, the hardship provisions do not allow for retrospective payment. Consequently, the Tribunal affirmed the reviewable decisions, meaning the cancellation of the age pension from July 2021 stood, and no pension arrears could be paid for that period.