Mentink v Secretary, Department of Social Services
[2015] FCA 473
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2015-05-18
Before
Greenwood J
Source
Original judgment source is linked above.
Judgment (11 paragraphs)
REASONS FOR JUDGMENT 1 This proceeding concerns an appeal under s 44(1) of the Administrative Appeals Tribunal Act 1975 (Cth) (the "AAT Act") arising out of a decision of the Administrative Appeals Tribunal (the "Tribunal") by which the Tribunal, constituted by Senior Member Dr K S Levy RFD, decided that "[a]s Mr Mentink [the appellant] does not satisfy the legislative requirements, he was not eligible for [an] age pension for the periods under review" and thus the "decision under review is therefore affirmed". As to the proper description of the respondent, an order was made on 22 May 2014 that the name of the respondent be amended from Secretary, Department of Families, Housing, Community Services and Indigenous Affairs to "Secretary, Department of Social Services". 2 Mr Black, counsel for the respondent, observes in his written submissions, correctly in my view, that the decision of the Tribunal is "expressed in a somewhat unorthodox manner" having regard to the decision the subject of review before the Tribunal. Counsel for the respondent also says that notwithstanding that matter, it is clear that the Tribunal understood that it was affirming the original decision of the respondent made under s 80 of the Social Security (Administration) Act 1999 (Cth) (the "Administration Act") to suspend payment of age pension payments to Mr Mentink for the period the subject of the decision under review. 3 The Tribunal observes (and finds) that Mr Mentink applied for an age pension on 5 March 2012, the day before his 65th birthday. The application was approved (on 23 March 2012) with effect from 6 March 2012: paras 1 and 20 of the decision. The Tribunal observes that Mr Mentink returned to Australia on 2 March 2012 and that prior to his return on that date, he had spent a great deal of time out of Australia. The Tribunal observes that during a period of eight years and eight months immediately prior to 2 March 2012, Mr Mentink had been absent from (that is, physically outside of) Australia for the following periods, as described at para 4 of the Tribunal's reasons: • 4 June 2003 - 27 December 2003 (6½ months) • 27 March 2005 - 17 April 2005 (3 weeks) • Unknown - 30 December 2006 (? 1 week to 18 months?) • 16 March 2007 to 17 March 2007 (2 days) • 19 March 2007 to 7 August 2008 (1 year, 4 months) • 9 November 2008 to 2 March 2012 (3 years, 5 months) 4 The Tribunal observes that on 27 April 2012, Mr Mentink left Australia (to return to Indonesia) and returned to Australia on 6 August 2012 approximately three and a half months later. At para 4, the Tribunal also notes that Mr Mentink left Australia on 16 September 2012 and returned on 14 December 2012 constituting an absence of approximately three months. 5 The Tribunal notes that on 27 April 2012 "the department" (then called the Department of Human Services) suspended Mr Mentink's age pension from 27 April 2012 to the end of the period of Mr Mentink's immediate absence from Australia (which was 6 August 2012): para 1. 6 Mr Mentink sought review of the suspension decision before a Departmental officer. He then sought review before an "Authorised Review Officer" who reviewed and approved the decision on 27 June 2012. He then sought review before the Social Security Appeals Tribunal (the "SSAT") which reviewed and affirmed the decision on 20 August 2012. 7 On 7 September 2012, Mr Mentink sought review of the SSAT decision before the Tribunal. 8 Section 179(1) of the Administration Act provides that an application may be made to the Tribunal to review the SSAT decision. The SSAT decision is taken to be, where it has affirmed a decision (of an Authorised Review Officer) "that decision as affirmed" [emphasis added]: s 179(2)(a). Similarly, when an Authorised Review Officer affirms an earlier decision (in this case the suspension decision), the Authorised Review Officer's decision is taken to be the suspension decision as affirmed: s 142(4)(a) of the Administration Act. 9 Although each respective decision so affirming the preceding decision is a decision of the particular decision-maker or decision-making body, the content of the decision is that reflected in the decision, as affirmed. 10 In substance then, the materials show that the content of the decision as affirmed, under review before the Tribunal, was a decision of the respondent to suspend payment to Mr Mentink of a social security pension in the form of an age pension on the footing that Mr Mentink had "left Australia" on 27 April 2012. Mr Mentink was out of Australia until 6 August 2012. The affirmed original decision was expressed in these terms in a communication to Mr Mentink: Your Age Pension has been stopped because you left Australia within two years of your most recent return. Please contact us if you return to Australia. Centrelink has based this decision on information provided by you and/or Australia's immigration department. 11 The background to the way in which the question of the suspension of Mr Mentink's pension arose is this. 12 Mr Mentink arrived in Australia on 2 March 2012. It will be necessary to examine the Tribunal's observations and findings concerning Mr Mentink's overseas movements later in these reasons. On 5 March 2012, Mr Mentink made a claim for a social security payment under Div 1 of Pt 3 of the Administration Act: see 11(1), s 16(1) of the Administration Act. 13 A social security payment is defined to include a social security pension which, in turn, is defined to include an age pension: see s 23 of the Social Security Act 1991 (Cth) (the "1991 Act"). Unless a contrary intention appears, an expression used in the 1991 Act has the same meaning when used in the Administration Act. 14 By s 37 of the Administration Act, subject to matters not presently relevant, the Secretary must determine that a claim for a social security payment is to be granted if the Secretary is satisfied that Mr Mentink is qualified for the social security payment and the social security payment is payable: see s 37(1)(a) and (b). 15 Mr Mentink's claim for a social security payment in the form of an age pension under the 1991 Act and the Administration Act was accepted and granted presumably because the Secretary by his delegate reached the relevant state of statutory satisfaction as to the two s 37(1) factors. 16 As to a claimant's qualification for a social security payment in the form of an age pension, s 43 of the 1991 Act provides that a person is qualified for an age pension if the person has reached "pension age" (65 years of age in Mr Mentink's case) and any one of four factors identified in s 43(a) to (d) of that Act applies. The relevant factor in Mr Mentink's case was whether he had "10 years qualifying Australian residence". A person has 10 years qualifying Australian residence if, and only if, the person has, at any time, been an Australian resident for a continuous period of not less than 10 years (or another alternative factor not presently relevant): see s 7(5) of the 1991 Act. 17 There is no issue about whether Mr Mentink is an Australian citizen. 18 Moreover, there seems to be no issue that Mr Mentink is a person who has been an Australian resident for a continuous period of not less than 10 years. 19 Apart from the question of qualification for an age pension, a claim for a social security payment (including a social security pension in the form of an age pension) may only be made by a person who is an Australian resident and who is in Australia: see s 29(1) of the Administration Act. I will set out the terms of s 29 of the Administration Act as Mr Mentink makes submissions about the construction and operation of that provision having regard to the qualifying introductory words in each subsection. Section 29 is in these terms: 29 General rule (1) Subject to sections 30, 30A, 31, 31A and 32, a claim for a social security payment or a concession card may only be made by a person who: (a) is an Australian resident; and (b) is in Australia (2) Subject to sections 30, 30A, 31, 31A and 32, a claim made at a time when the claimant is not an Australian resident or is not in Australia is taken not to have been made. [emphasis added] 20 An Australian resident is, relevantly for present purposes, a person who resides in Australia and who is an Australian citizen: see s 7(2) of the 1991 Act. 21 By operation of s 7(3) of the 1991 Act, in deciding whether or not a person is "residing" in Australia, "regard must be had" to the following considerations: (a) the nature of the accommodation used by the person in Australia; and (b) the nature and extent of the family relationships the person has in Australia; and (c) the nature and extent of the person's employment, business or financial ties with Australia; and (d) the nature and extent of the person's assets located in Australia; and (e) the frequency and duration of the person's travel outside Australia; and (f) any other matter relevant to determining whether the person intends to remain permanently in Australia. 22 Section 80(1) of the Administration Act provides that if the Secretary is satisfied that a social security payment is being, or has been, paid to a person who is not, or was not, qualified for the payment; or to whom the payment is not, or was not, payable; the Secretary is to determine that the payment is to be cancelled or suspended. 23 Part 4.2 of Ch 4 of the 1991 Act addresses the topic of "Overseas portability". 24 For the purposes of Pt 4.2, a claim in relation to a social security payment includes a claim that is taken to have been made under a provision of the Administration Act. Division 2 of Pt 4.2 addresses the topic of "Portability of social security payments". Division 2 applies to a person during a period (called the "period of absence") throughout which the person is continuously absent from Australia if, relevantly, immediately before the period of absence commenced, the person was receiving a social security payment (called "the payment") mentioned in column 2 of the table at the end of s 1217 of the 1991 Act: see s 1213 of the 1991 Act. 25 Column 2 of the table mentioned in s 1217 includes an age pension. 26 As to the notion of receiving a social security payment, s 23(2) provides that a person is taken to be receiving a payment under the 1991 Act from the earliest day on which the payment is payable to the person even if the first instalment of the payment is not paid until a later date and by s 23(4) a person is taken to be receiving a social security payment until the latest day on which the payment is payable to the person even if the last instalment of the payment is not paid until a later date. 27 Thus, Div 2 of Pt 4.2 of the 1991 Act applied to Mr Mentink. 28 Section 1214(1) of the 1991 Act provides that if a person's "maximum portability period" for a social security payment is an "unlimited period", the person's right to continue to be paid the payment throughout the period of absence is not affected merely by the absence. 29 Section 1214(2) of the 1991 Act provides that s 1214 is "subject to section 1220". 30 Section 1214 of that Act invites the question of what is a person's maximum portability period. 31 That question is answered by s 1217(1) of the 1991 Act which provides that the person's maximum portability period for the relevant payment is the period referred to in column 5 of the table at the end of s 1217 which is applicable to the payment specified in column 2 of the table and the class of persons to which the person belongs, as specified in column 3 of that table. 32 Applying that formula to the table at the end of s 1217 of that Act, the position is this: the person's maximum portability period for an "age pension" (column 2) is for "all persons" (column 3) an "unlimited period" (column 5). It follows therefore that if, after applying the formula, the person's maximum portability period for the social security payment in the form of an age pension is an unlimited period, the person's right to continue to be paid the payment throughout the period of absence is not affected merely by that person's absence from Australia: s 1214(1). 33 Section 1214 of the 1991 Act, however, is subject to s 1220 of that Act. 34 Section 1220(1) of that Act is in these terms: 1220 No portability where claim based on short residence (1) If: (a) a person is an Australian resident; and (b) the person ceases to be an Australian resident; and (c) the person again becomes an Australian resident; and (d) within the period of 2 years after the person again becomes an Australia resident, the person is granted … an age pension; … and (e) after the pension … is granted … but before the end of that period of 2 years, the person leaves Australia; and (f) financial assistance is not payable in respect of the person's absence from Australia under the Medical Treatment Overseas Program administered by the Minister who administers the National Health Act 1953; a pension … based on that claim is not payable to the person during any period during which the person is outside Australia. [emphasis added apart from the heading] 35 The basis of the claim for social security payments was Mr Mentink's claim made under s 11(1) of the Administration Act for age pension social security payments. If s 1220 is engaged by reason of each of the factors at (a) to (f) being satisfied, an age pension is "not payable" to Mr Mentink during any period during which he is outside Australia as s 1214(1) is subject to s 1220(1). 36 As can be seen from the terms of the original decision (see [10] of these reasons), Mr Mentink's age pension was "stopped" because he had left Australia within two years of his "most recent return". Plainly enough, the original decision was based upon the application of s 1220 of the 1991 Act. 37 In other words, for the purposes of the original decision, the decision-maker considered that Mr Mentink was a person who was once an Australian resident; then ceased to be an Australian resident; and then again became an Australian resident. The decision-maker took the view that within a period of two years after Mr Mentink had again become an Australian resident, he was granted an age pension and, after having been granted that pension but before the end of a period of two years, Mr Mentink "left Australia" (and the factor at s 1220(1)(f) was satisfied). In reliance upon those considerations, a decision was made to "stop" social security payments referable to the age pension. That was the suspension decision. That was the decision which was affirmed by the Authorised Review Officer and then affirmed by the SSAT. That was the decision which was the subject of the review before the Tribunal. 38 As mentioned at the outset of these reasons, the decision of the Tribunal is expressed in a somewhat unorthodox manner because the terms of the decision are that because Mr Mentink did not "satisfy the legislative requirements", he was "not eligible" for an age pension "for the periods under review". Thus, the "decision under review" was "therefore affirmed". Section 1220 of the 1991 Act is not concerned with eligibility and its application as a basis for suspending Mr Mentink's pension was entirely dependent upon whether the section was engaged having regard to whether each of the factors at (a) to (f) of s 1220 were satisfied. 39 If all of those integers at (a) to (f) were properly engaged with the result that the claim for age pension social security payments was not payable (and the Secretary was satisfied as to that matter), the Secretary was required by s 80(1) of the Administration Act to either cancel or suspend the payment to Mr Mentink of age pension payments. 40 If, however, those integers were not engaged because Mr Mentink had not again become an Australian resident upon his return to Australia, then s 1220 was not enlivened and any suspension decision (being the content of the affirmed decision the subject of review before the Tribunal) based upon it was made in excess of the power conferred by s 1220. However, if Mr Mentink was not an Australian resident (for the purposes of the 1991 Act and the Administration Act) when he made the claim for a social security pension in the form of an age pension on 5 March 2012, s 29 of the Administration Act (subject to Mr Mentink's construction point) has the effect that Mr Mentink's claim for an age pension is "taken not to have been made": see s 29(2) of the Administration Act and [19] of these reasons. 41 Section 43(1) of the AAT Act is in these terms: Tribunal's decision on review (1) For the purpose of reviewing a decision, the Tribunal may exercise all the powers and discretions that are conferred by any relevant enactment on the person who made the decision and shall make a decision in writing: (a) affirming the decision under review; (b) varying the decision under review; or (c) setting aside the decision under review and: (i) making a decision in substitution for the decision so set aside; or (ii) remitting the matter for reconsideration in accordance with any directions or recommendations of the Tribunal. 42 According to the last sentence of para 2 of the decision, the Tribunal made a decision to affirm the decision under review. The first sentence of para 2 of the decision seems to be an explanation of the basis upon which the Tribunal affirmed the decision under review although, of course, the Tribunal's reasons for decision (the "Tribunal's reasons") are the real source of that explanation and the amplification of what was intended to be conveyed by the first sentence of para 2 of the decision. 43 At para 2 of the Tribunal's reasons, the Tribunal understood the decision under review to raise two issues for determination. The Tribunal put it this way at para 2: 2. The following issues are raised for determination: (1) There is a preliminary issue of whether the applicant was an "Australian resident" at 5 March 2012, the date of the application for [an] age pension; and (2) Was he an "Australian resident" at any time during the time of absence from Australia from 27 April 2012 to 6 August 2012? 44 In framing the issues in this way, the Tribunal seemed to regard Issue 1 for the purposes of the review as a question of whether Mr Mentink had "again become", on 5 March 2012, an Australian resident for the purposes of s 1220(1)(c) of the decision made in reliance upon s 1220(1). If not an Australian resident on 5 March 2012, the Tribunal seems to be also (or more particularly) asking itself a very different question on review of whether Mr Mentink qualified at all for an age pension because although he was in Australia, he may, or may not, have been an Australian resident on 5 March 2012. That question, of course, was not a part of the decision under review (and affirmed by the Tribunal on review). 45 The second issue, as framed, seems to suggest that the Tribunal may have regarded, for the purposes of the review, the phrase "you left Australia" (see [10] of these reasons) as requiring an answer to the question of whether Mr Mentink had ceased to be an Australian resident at any point during the period of his absence from Australia in the period 27 April 2012 to 6 August 2012. Again, the Tribunal may have seen itself as examining, on review of the decision, that question with a view to determining whether Mr Mentink continued to qualify for an age pension as opposed to whether the decision to exercise the power under s 1220(1) ought to be affirmed, varied or set aside, having regard to the merits.