Soames v Secretary, Department of Families, Housing, Community Services and Indigenous Affairs
[2013] FCA 938
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2013-09-18
Before
Buchanan J
Source
Original judgment source is linked above.
Judgment (10 paragraphs)
Background 1 Prior to March 2011 the applicant, Mr Soames, was receiving a disability support pension. The disability support pension was cancelled with effect from 29 July 2010 because, after discovery of the fact that Mr Soames had withdrawn over $1 million from a savings account before a visit to Syria in August 2010, the respondent ("the Secretary") concluded that the value of Mr Soames' assets rendered him ineligible for such a pension. 2 Mr Soames unsuccessfully sought a review of the decision in the Social Security Appeals Tribunal ("the SSAT") and the Administrative Appeals Tribunal ("the AAT"). Some time later he applied to this Court for an extension of time in which to appeal the decision of the AAT but his application was dismissed (Soames v Secretary, Department of Families, Housing, Community Services and Indigenous Affairs [2013] FCA 260). The present judgment does not deal directly with the decision to cancel the disability support pension. 3 On 9 February 2012, Mr Soames applied again for a disability support pension. The claim was rejected having regard to the value of his assessed assets. Applications to the SSAT and the AAT for review of the decision were unsuccessful. The present judgment does not deal directly with that claim either. 4 In July 2012 and September 2012, Mr Soames applied again for a disability support pension. Each claim was rejected on the same ground as earlier claims. Applications to the SSAT and the AAT were again unsuccessful. The present "appeal" to this Court under s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) ("the AAT Act") (which is an application in the original jurisdiction of the Court) in part concerns the most recent rejection of the claim for a disability support pension by the AAT (Issue 1). 5 On 4 May 2012, Mr Soames applied for a concession health care card. The application was refused because it was concluded that Mr Soames' deemed income rendered him ineligible. He then applied unsuccessfully to the AAT for review of that decision. The present appeal also concerns the rejection of this claim by the AAT (Issue 2). 6 In July 2012, the Secretary decided to recover a debt from Mr Soames, represented by overpayment of disability support pension from 29 July 2010 to 15 March 2011, when payment of that pension was discontinued. Mr Soames is paid a carer's allowance. Money was deducted from Mr Soames' carer allowance to pay the debt. In January 2013, the Secretary decided not to refund the deductions to Mr Soames. Mr Soames challenged each of the decisions in the SSAT and the AAT. The present appeal also concerns rejection of those claims by the AAT (Issue 3). 7 In December 2012, Mr Soames made a claim for special benefits. The claim was rejected for similar reasons as the claim for disability support pension. Mr Soames applied unsuccessfully to the SSAT and the AAT. The present appeal also concerns rejection of this claim by the AAT (Issue 4). 8 The decision of the AAT dealing with Issues 1 to 4, which is challenged in the present proceedings, was given on 8 July 2013. The Senior Member who constituted the AAT on that occasion gave close attention to the findings of the AAT (constituted by other Senior Members) in relation to the earlier decisions and claims to which I have referred. The Senior Member accepted some of the earlier findings and, on the basis of fresh evidence, varied others. Hereafter, I shall refer to: the AAT decision (given on 23 February 2012) about the cancellation of Mr Soames' disability support pension in March 2011 as "AAT Decision 1"; the AAT decision (given on 11 October 2012) about the rejection of Mr Soames' claim in February 2012 for a disability support pension as "AAT Decision 2"; and the AAT decision (given on 8 July 2013) which deals with Issues 1 to 4 and was challenged by the present application as "AAT Decision 3". 9 It will be apparent that there are some common features which link the four issues I have identified that were the subject of AAT Decision 3. Of central importance to each of them was the conclusion reached by the AAT that Mr Soames was disentitled to a disability support pension, a low income health care card and special benefits because of the assessed value of his assets or his deemed income. 10 The operation of the provisions in the Social Security Act 1991 (Cth) ("the Social Security Act") that determined the way in which Mr Soames' entitlement to a disability support pension was to be assessed was described in AAT Decision 3 as follows: Statutory framework 12. The rate of disability support pension payable to a person is determined in accordance with the rate calculator in section 1064 of the Act. Calculations are made of a person's income and assets, and whichever results in the lower rate of reduced pension must be applied (s 1064-A1). In Mr Soames' case, the assets test applies as it gives the lower rate of reduced pension. 13. The Act defines "asset" to mean property or money (including property or money outside Australia) (s 11). Where a person holds assets whose total value exceeds the person's "assets value limit" the rate of disability support pension payable to them is progressively reduced until the rate of pension is nil (s 98 and Module G of s 1064 of the Act). Where the total value of a person's assets exceeds the "asset cut-off limit", disability support pension is not payable. Apparently Mr Soames is neither a member of a couple nor a homeowner, and therefore at the date of the July 2012 and September 2012 disability support pension claims his asset value limit and asset cut-off limit was $332,000 and $835,750, respectively. 14. Where a person "disposes of" assets for no or inadequate consideration, or for the dominant purpose of obtaining a social security advantage, the person is taken to have disposed of the asset (s 1123). Section 1124 of the Act provides that if a person disposes of assets, the amount of the disposition is: (a) if the person receives no consideration for the … disposal … - an amount equal to: … (ii) the value of the assets that are disposed of; or … (b) if the person receives consideration for the … disposal … - an amount equal to: … (ii) the value of the assets that are disposed of; or … less the amount of the consideration received by the person in respect of the …disposal … … 15. Where a person has disposed of assets, the amount of the disposition less the "disposal limit" is included in the calculation of the value of the person's assets for a period of five years starting on the day on which the relevant disposal took place (s 1126AA). Where a person who is not a member of a couple makes a disposition, or dispositions, of less than $10,000 in a single year, then the provisions concerning disposal of assets do not apply (s 1126AA). Section 1126AB operates to qualify this concession by providing, in effect, that the total amount disposed of cannot be more than $30,000 over a five year period. 16. Where a social security pension is not payable because of the value of the person's assets, and the person holds one or more unrealisable assets, in certain circumstances the value of that asset is to be disregarded in working out the value of the person's assets (ss 1129 and 1130). These provisions are considered in more detail below. 11 No challenge has been made to this analysis. Assessment was required of the value of assets to be attributed to Mr Soames. In that assessment, the value of assets he had disposed of in the five years before July 2012 and September 2012 had to be brought to account. Where Mr Soames had disposed of assets (including distributing or parting with money), attention was required to whether he had received any, or adequate, consideration. Clearly, where one asset (e.g. money) was exchanged for another (e.g. property), the replacement asset was to be counted in its own right. 12 The assessment of these various matters was a function of the AAT but it is not, at a factual level, a function of this Court, provided the AAT understood and correctly applied the statutory scheme which guided its deliberations. For the moment, I shall briefly summarise the effect of the AAT's assessment of the facts as it was applied to Mr Soames' circumstances in AAT Decision 3. Later, I shall return to some of those findings in a little more detail. 13 In August 2010, Mr Soames left Australia for Syria with bank cheques totalling $1,080,000. He returned, less than five months later, with $40,000 in cash. While in Syria, he purchased a house for about $350,000. The AAT accepted that, in addition, costs of the purchase transaction might have amounted to about $10,000. When he returned to Australia, Mr Soames left $120,000 with his sister in Syria (although he later arranged for $40,000 of that amount to be brought to him in Australia). The AAT accepted that up to $90,000 might have been expended on the costs of his visit. After purchase of the house and "travel" expenses, there was another $470,000 (not so far explained) which was disposed of in Syria also to be assessed for adequacy of consideration. 14 The AAT did not accept Mr Soames' claims or explanations about how he parted with the $470,000. In addition, the value of the house, the amount brought back to Australia and the amount left in cash with Mr Soames' sister, had to be counted as assets ($350,000 + $40,000 + $120,000 = $510,000). As to the last amount, $40,000 was later sent to Mr Soames in Australia. The AAT accepted that adequate consideration was received in Australia for all of that amount. The AAT did not accept that adequate, or any, consideration was received for $30,000 of the $40,000 initially brought back to Australia, which was quickly distributed in various ways. A further allowance of $20,000 in permissible gifts was made. The overall effect of those various conclusions was that the AAT found that when he applied again for a disability support pension in July and September 2012 Mr Soames had, or had disposed of without consideration, a total of over $900,000 in assets. I shall refer to the detailed calculations in due course. 15 The AAT's overall assessment left the value of Mr Soames' assets well above the asset cut-off limit referred to by the AAT in paragraph 13, extracted above. The result was that no disability support pension was payable. That conclusion, and the intermediate conclusions on which it was based, were exclusively based on detailed findings of fact. 16 Before I comment further on the factual issues, it is as well to emphasise again that the proceedings in this Court do not provide an opportunity to challenge findings of fact as such, or to seek alternative findings about factual matters. Section 44 of the AAT Act only provides an appeal to this Court "on a question of law". Identifying a question of law in the present case proved difficult for Mr Soames. Ultimately, the allegation against the Senior Member, which I reject without hesitation, is that she acted in bad faith and in concert with the legal representatives of the Secretary. There was no foundation identified for any of the statements to this effect which were made repeatedly during the proceedings. Allegations of the kind made by Mr Soames would never have been permitted from a legal practitioner. The present is a case where procedural standards had to be compromised because Mr Soames is a self-represented litigant. Mr Soames did not hesitate to take advantage of the extra freedom which he was accorded as a self-represented litigant. He was given that extra freedom so that his grievances could be fully exposed (where relevant) to see whether, despite his failure to identify any relevant question of law, there may nevertheless have been some feature of the case which deserved attention. 17 In fact, with the assistance of the Secretary's legal representatives, one error of calculation was identified. I will discuss it in due course. It does not, upon examination, provide a reason to grant Mr Soames any relief in the present proceedings. 18 If it is necessary to review the present judgment on appeal, the transcript will not provide edifying reading. I regret to say that the present case is one which throws into question the efforts made by this Court to accommodate the interests of self-represented litigants, sometimes at the risk of visiting unfairness on those who must respond to them.