austlii:cth/ARTA/2025/3097
General information, not legal advice.
ARTA
2025-09-30
Original judgment source is linked above.
1158 Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge
An instalment of a social security pension, a social security benefit, a parenting payment, a carer allowance, a mobility allowance or a pensioner education supplement is not payable to a person in respect of a day on which the person is:
(b) undergoing psychiatric confinement because the person has been charged with an offence.
Note 2: For psychiatric confinement see subsections 23(8) and (9).
(a) is being lawfully detained (in prison or elsewhere) while under sentence for conviction of an offence and not on release on parole or licence; or
(b) the person is undergoing a period of custody pending trial or sentencing for an offence.
Issue 1: Was Miss Orlok in gaol or in psychiatric confinement in the period [Day 1] May 2018 to 3 October 2018, such that DSP was not payable to her?
For the purposes of SSAct subsection 23(9), a person is regarded as undertaking a course of rehabilitation when they are undertaking a planned series of activities that may include medical and other treatments/activities directed towards improving the person's physical, mental and/or social functioning.
If the person is merely undertaking ad hoc rehabilitation activities, or their treatments/activities cannot be said to be directed towards improving their physical, mental and/or social functioning, then SSAct subsection 23(9) does not apply and the bar on receipt of social security payments remains.
Refer to the Full Federal Court decision of Franks V Secretary of FaCS (2002) FCAFC 486 (20 December 2002).
However, in practice it will be unlikely for people placed in psychiatric institutions under legal mental health orders to be merely undertaking ad-hoc activities or treatments that are not designed to help their physical, mental or social rehabilitation. This is because as a rule (rather than an exception) people are being confined in psychiatric institutions for treatment and rehabilitation purposes and treatment plans are a norm in such institutions.
A person placed in a psychiatric institution may be undertaking any one of a number of treatments and activities that could form part of a planned series of activities.
Generally, any activity recommended by appropriate personnel in psychiatric institutions as part of an overall rehabilitation plan is a legitimate activity for the purpose of SSAct subsection 23(9) as long as it forms part of a planned series of activities.
Explanation: People placed in psychiatric institutions are cared for by a range of professionals who are qualified and trained in designing treatments and activities to improve a person's physical, mental and/or social functioning. These professionals include health professionals, such as medical practitioners (e.g. psychiatrists, other medical specialists, general practitioners), allied health professionals (e.g. psychologists, occupational therapists, exercise physiologists, physiotherapists, podiatrists, pharmacists, rehabilitation counsellors) and other relevant professionals (e.g. social workers).
Acceptable treatments and activities may involve but not be limited to a number of different approaches including medical therapies, physiotherapy, exercise programs, gardening, various awareness programs (e.g. drug and alcohol awareness) or life skills programs. All these activities are legitimate activities as long as they are prescribed by an appropriate treating professional and form part of a planned series of activities. Such activities are not regarded as ad-hoc activities.
Example: A person participating for one hour every second day in a cooking class as part of a rehabilitation plan with a view to developing their social skills through team work and learning about healthy eating habits is participating in a legitimate activity. This is not an ad-hoc activity.
It is recognised that treatment/rehabilitation plans need to be flexible and may need to be changed depending on a person's circumstances, including the nature and severity of their condition, response to treatment and capacity to undertake specific activities at a certain point in time. Therefore, for a series of activities to be regarded as a course of rehabilitation, it is not necessary for them to be part of a strict plan containing clearly defined durations and milestones for specific activities and treatments. A person may be participating in activities sequentially or in combination.
Explanation: Depending on the severity of a person's medical condition, it may take some time for them to progress to another activity or stage of treatment, e.g. for some people it may take a long time for the effective medication to be identified and during that time they may only be able to undergo medical treatment.
Issue 2: What is the date of effect of the favourable decision?
Services Australia may presume there is implied authority of the customer when contacted by third parties who are members of 'helping' professions, and:
A helping professional must generally be a 'professional' in the sense that they are subject to professional and ethical obligations as a registered member of a professional organisation or body (for example, Australian Medical Association, State or Territory law society).
The Tribunal sets aside the decision under review and remits the matter for reconsideration in accordance with the order that: