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

This matter concerned an application by Ms Theresa Thompson for review of a decision by the Secretary of the Department of Social Services to reduce her Australian Age Pension. Ms Thompson, an Australian citizen who had lived and worked in Australia for 40 years, was entitled to a New Zealand superannuation benefit. Her Age Pension rate was calculated by taking into account this New Zealand benefit, resulting in a reduction of her Australian payment. Ms Thompson contended that her New Zealand benefit should not be considered in the calculation and that she was being treated unfairly, particularly as she believed the exchange rate resulted in a financial loss.

The Administrative Appeals Tribunal was required to determine whether Ms Thompson's New Zealand superannuation benefit should be taken into account when calculating the rate of her Australian Age Pension, and whether any adjustment should be made for the currency exchange rate. The Tribunal considered the provisions of the *Social Security Act 1991*, the *Social Security (Administration) Act 1999*, and the *Social Security (International Agreements) Act 1999*.

The Tribunal reasoned that the *Social Security (International Agreements) Act 1999* mandates that New Zealand superannuation benefits must be included in the calculation of an Australian Age Pension. This legislation is designed to ensure that individuals do not receive a greater combined benefit from both countries than they would receive from a single country's pension. The Tribunal found that it had no discretion to alter this calculation. Regarding the exchange rate, the Tribunal noted that the relevant legislation does not provide for adjustments based on currency fluctuations, and therefore, it lacked the power to make such an adjustment, even though it acknowledged that this could result in a small fortnightly loss for Ms Thompson. The Tribunal affirmed the decision under review, finding that Ms Thompson was being paid her Age Pension at the correct rate according to the law.