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

This matter concerned an appeal by the applicant, Mr Veres, against a decision of the Department of Social Services to reduce his age pension. The applicant, who was born in the Slovak Republic, first arrived in Australia in 1969 and had been receiving a Disability Support Pension since 1999. He transferred to the age pension on 5 June 2012. In 2016, the applicant informed the Department of his intention to travel to the Slovak Republic, following which his energy supplement ended and his pension supplement was reduced. Subsequently, a decision was made to reduce his age pension amount based on the proportionality provisions of the *Social Security Act 1991* (Cth).

The primary legal issue before the court was whether the proportionality provisions of sections 1220A and 1221 of the *Social Security Act 1991* were correctly applied in reducing the applicant's age pension. This involved determining the correct calculation of the applicant's Australian Working Life Residency (AWLR) period, particularly in light of legislative changes that took effect from 1 July 2014. The court also considered whether the applicant received correct advice regarding the impact of overseas travel on his pension entitlements.

The court affirmed the decision to reduce the applicant's age pension. It reasoned that section 1221 of the Act, which governs the Pension Portability Rate Calculator, was correctly applied. The law concerning the AWLR calculation changed on 1 July 2014, increasing the required residency period from 25 years to 35 years. However, a lesser period of 25 years was preserved for individuals receiving the age pension immediately before 1 July 2014. As Mr Veres was an Australian resident on that date, the AWLR was correctly calculated and applied to his age pension. The court was satisfied that the applicant had received accurate advice when enquiring about the impact of living overseas on his pension.

The decision under review of 14 October 2019 was accordingly affirmed.