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

The Administrative Appeals Tribunal considered the dispute between Mr Vesic (the applicant) and the Secretary of the Department of Social Services concerning the recovery of an alleged overpayment of a disability support pension. The core of the disagreement centred on whether certain funds, specifically loans advanced by the applicant, should be included in the assessment of his assets for the purposes of determining his eligibility for the pension and the existence of any overpayment.

The Tribunal was required to determine whether the balance of funds in an account held in the applicant's name, representing loans advanced to a Mr Cavric, constituted assets of the applicant for the purposes of the social security assets test. This involved considering whether a valid trust existed in relation to these funds, whether the applicant was an attributable stakeholder in a designated private trust, and whether the outstanding loan amounts should be characterised as "deprived assets" under the relevant legislation.

The Tribunal reasoned that the outstanding balance of the loans advanced to Mr Cavric, specifically the amount of $76,254.21 representing the difference between the total advanced and a partial settlement, and a further amount of $30,000 lent on a later date, were to be included in the applicant's asset calculation. These amounts were considered "deprived assets" under section 9(4) of the Social Security Act 1991, meaning they were effectively retained by the applicant despite being advanced to another party, until such time as they were repaid. Consequently, the Tribunal set aside the decision under review and remitted the matter for reconsideration in accordance with its findings.