Annas, A. v. Director General of Social Security [1985] FCA 588

Annas, A. v. Director General of Social Security [1985] FCA 588

It is not impermissible under the Social Security Act to have regard to the applicant's capacity to work in a business owned and established with capital from the applicant or from friends or relatives. However, before holding that such capacity negates the statutory degree of incapacity, the Tribunal must make specific findings based on evidence regarding the feasibility, scale, and circumstances of the possible self-employment. The Tribunal erred in law by failing to make such findings and relying only on vague and general evidence about the prospect of self-employment, thus the decision could not stand.

Parties
Appellant: Arthur Annas; Respondent: Director-General of Social Security
Jurisdiction
Australia
Judgment Date
21 November 1985
Procedural Posture
Appeal / Appellate Judgement on Appeal From a Decision of a Single Judge of the Federal Court, Relating to an Appeal From the Administrative Appeals Tribunal
Outcome
Appeal allowed
Legal Topics
Invalid Pension Qualification, Incapacity for Work, Self Employment and Eligibility, Role of Capital Funds in Assessing Capacity, Assessment of Work Capacity Under Social Security Act
Social Security Law Invalid Pension Qualification Incapacity for Work Self Employment and Eligibility Role of Capital Funds in Assessing Capacity Assessment of Work Capacity Under Social Security Act

Case Brief

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Parties

Arthur Annas

Appellant

Director-General of Social Security

Respondent

Procedural Posture

Appeal / Appellate Judgement on Appeal From a Decision of a Single Judge of the Federal Court, Relating to an Appeal From the Administrative Appeals Tribunal

Legal Issues

  1. 1 Whether a person's capacity to perform selected duties in their own business, including via capital introduced by friends or relatives, is relevant to eligibility for invalid pension under the Social Security Act 1947.
  2. 2 Whether the Administrative Appeals Tribunal erred in law when considering capacity for work by reference to potential self-employment funded by capital from friends or relatives.

Ratio Decidendi

It is not impermissible under the Social Security Act to have regard to the applicant's capacity to work in a business owned and established with capital from the applicant or from friends or relatives. However, before holding that such capacity negates the statutory degree of incapacity, the Tribunal must make specific findings based on evidence regarding the feasibility, scale, and circumstances of the possible self-employment. The Tribunal erred in law by failing to make such findings and relying only on vague and general evidence about the prospect of self-employment, thus the decision could not stand.

Court Disposition

Appeal allowed

Orders

  • The appeal be allowed.
  • The judgment appealed from be set aside and in lieu thereof, the appeal to this Court from the Administrative Appeals Tribunal be allowed and the decision of the Administrative Appeals Tribunal be set aside.