Boscovic, J.J.J. v. The Secretary, Department of Social Security [1994] FCA 927
Federal Court of Australia
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Bl AUSTRALIA i
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Mn fJishice Nea ues
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Aisgoc. to Neaves J.
JUDGFS CHAMBERS 0 -
FEDERAL COUR] OF AUSTRALIA
JUDGMENT No. smal LF
CATCHWORDS
SQCIAL SERVICES - Disability support pension - Pension paid
until decision taken that pension be cancelled - Decision
affirmed by Administrative Appeals Tribunal - Appeal to
Court - Question whether Tribunal's decision that applicant
did not have a continuing inability to work so unreasonable
that no reasonable person could have arrived at it
ve s Lbu ct 197 th subs 44(1
oc ecurity Act 1991 th s 94
JERRY JEREMIAH JORDAN BOSCOVIC v THE SECRETARY, DEPARTMENT
SOCIAL SECURITY
No. ACT G 41 of 1994
Neaves J.
29 November 1994
Canberra
THE FEDE RT OF AUSTRALIA )
)
AUST AN TAL TERRIT )
) No. ACT G 41 of 1994
DISTRI RE TRY )
)
)
GENERAL DIVISION
ON APPEAL FROM THE GENERAL ADMINISTRATIVE
DIV ADMINISTRATIVE
BETWEEN: ERRY JEREMIAH RDAN_B VI
Applicant
AND: THE SECRETARY, DEPAR NT_OF
SOCIAL SECURITY
Respondent
MINUTE OF ORDER
JUDGE MAKING ORDER
DATE OF ORDER
Neaves J.
29 November 1994
WHERE MADE Canberra
R DER;
+ 1. The application be dismissed.
2. The applicant pay the respondent's costs of the
: application,
Note: Settlement and entry of orders is dealt with in Order
36 of the Federal Court Rules.
N EDERAL RT_ OF AUSTRALIA
AUSTRALI ITAL TERRITORY
No. ACT G 41 of 1994
R REGI
GENERAL DIVISION
wee ww SSS
ON APPEAL FROM THE GENERAL ADMINISTRATIVE
DIVISION OF THE ADMINISTRATIVE APPEALS TRIBUNAL
BETWEEN: ERRY_ JEREMIAH RDAN_B' Vv.
Applicant
AND: THE SECRETARY, DEPARTMENT OF
SOCIAL SECURITY
Respondent
CORAM: Neaves J.
DATE: 29 November 1994
REA! FOR DGMENT
This is an application by way of appeal pursuant to
s.44(1) of the Administrative Appeals Tribunal Act 1975 (Cth)
by Jerry Jeremiah Jordan Boscovic ("the applicant") from the
decision of the Administrative Appeals Tribunal given on 23
May 1994 in relation to the applicant's entitlement to a
disability support pension under the Social Security Act 1991
(Cth).
The history of the matter may be shortly stated.
The applicant was granted an invalid pension under Part IV of
the Social Security Act 1947 (Cth) with effect from 3 March
1988. Invalid pension was paid under that Act until its
repeal upon the coming into operation on 1 July 1991 of the
Social Security Act 1991 (see Social Security (Rewrite)
Transition Act 1991 (Cwlth), s.3). Payment of the pension
continued thereafter under Part 2.3 of the Social Security Act
1991. By the Social Security (Disability and Sickness
Support) Amendment Act 1991 (Cth), Part 2.3 of the Social
Security Act 1991 relating to the payment of invalid pension
was repealed and substituted. The substituted provisions,
which relate to the payment of disability support pension,
came into operation on 12 November 1991. A disability support
pension was paid to the applicant under the substituted
provisions (see clause 33 in Schedule 1A to the Social
Security Act 1991, that clause having been inserted by s.23 of
the Social Security (Disability and Sickness Support)
Amendment Act 1991). Payment of that pension continued until
the decision was taken by a delegate of the respondent on 3
November 1992 to cancel the pension, the cancellation to take
effect following the payment which was to be made on 5
November 1992. The pension was cancelled on the ground that
the level of the applicant's impairment was not of 20% or more
under the Impairment Tables. The decision to cancel the
disability support pension was affirmed by an Authorised
Review Officer on 25 February 1993 but on a different ground,
namely on the ground that, although the applicant's impairment
was of 20% or more under the Impairment Tables, he no longer
had a continuing inability to work. The decision of the
Authorised Review Officer was affirmed by the Social Security
Appeals Tribunal on 14 April 1993 and by the Administrative
Appeals Tribunal ("the Tribunal") on 23 May 1994.
The qualifications for disability support pension
are prescribed by s.94 of the Social Security Act 1991. At
the material time, that section relevantly provided:
"94, (1) A person is qualified for disability
support pension if:
(a) the person has a physical, intellectual or
psychiatric impairment; and
(b) the person's impairment is of 20% or more under
the Impairment Tables; and
(c) the person has a continuing inability to work;
and
(d) the person has turned 16; and
(e) the person either:
(i) is an Australian resident at the time
when the person first satisfies
paragraphs (a), (b) and (c); or
(ii) has 10 years qualifying Australian
residence; or
(iii) is born outside Australia and, at the
time when the person first satisfies
paragraphs (a), (b) and (c), the
person:
(A) is not an Australian
resident; and
(B) is a dependent child of an
Australian resident;
and the person becomes an Australian
resident while a dependent child of
an Australian resident.
(2) A person has a continuing inability to work if
the Secretary is satisfied that:
(a) the person's impairment is of itself sufficient
to prevent the person from doing:
(i) the person's usual work; and
(ii) work for which the _ person is
currently skilled;
for at least 2 years; and
(b) either:
(i) the person's impairment is of itself
sufficient to prevent the person from
undertaking educational or vocational
training during the next 2 years; or
(ii) the person's impairment does not
prevent the person from undertaking
educational or vocational training
but such training is not likely to
equip the person, within the next 2
years, to do work for which the
person is currently unskilled.
(5) In this section:
'work' means work:
(a) that is for at least 30 hours per week at award
wages or above; and
(b) that exists in Australia, even if not within
the person's locally accessible labour market.
It is not now in dispute that at the material time
the applicant satisfied the qualifications prescribed by pars
(a), (b), (d) and (e) of subs.94(1). The dispute between the
parties centres on the qualification prescribed by par.(c) of
that subsection. The issue was discussed by the Tribunal in
the following paragraphs of its reasons for decision:
"6. Document 1T24 is a report by Mr Nolan in the
Department of Social Security about an investigation
being conducted by the Department in conjunction with the
Australian Taxation Office. The gist of that report is
that the applicant had been found to be involved in a
roadside flower selling business since February 1988 and,
in particular, had been observed undertaking this
activity for some period from November 1990. As a
consequence the applicant has been interviewed about his
activities and has advised Mr Nolan that he drove his van
to the roadside location every day from his home and that
he also drives to Sydney once a week to purchase stock.
He apparently stated that he works from 2 pm until 7 pm
each day, and sometimes works longer hours. The
applicant has a full drivers licence.
7. In his evidence before the Tribunal the applicant
basically confirmed Mr Nolan's report as to the roadside
flower selling business and also indicated that his wife
participated in the selling activity but at different
sites. He agreed in his evidence that he travels to
Sydney for the purpose of buying flowers at the Sydney
market and that his purchase of stock each week would be
in the vicinity of $600. He claimed that these flowers
were then sold at a mark-up which netted him about $800
as gross proceeds, that is, $200 gross profit on the
transaction.
14. The applicant sought to convince me that' the
roadside flower selling business is only marginally
profitable and is a very undemanding business suited to a
person with his incapacity. I have some difficulty with
this and I will explain why. Exhibit 1 is a bundle of
papers concerning the financing of a purchase of a Suzuki
Super Carry Van purchased from Slaven Motors in 1989. In
his statement to the finance company, Australian
Guarantee, the applicant said that his gross income from
his self-employed florist business was $500 per week.
Repayments on the van were said to be $366 per month, to
be paid over three years. That van was subsequently
traded in on a Nissan van. The applicant said in his
evidence that the Nissan van was bought as a new vehicle
in 1990. The applicant also said in his evidence that he
had purchased a Ford Econovan as a new vehicle for
$23,900 cash. When asked where he obtained the cash
from, he said it was from gambling. When asked details
about how he obtained this money and how he obtained
further money to buy a Toyota Hi Ace Van in May 1993, he
became evasive in his answers and I formed the view that,
in fact, he was prevaricating. He said, as an
explanation, that he was a professional gambler and that
he did very well as a gambler, and that was the source of
his income. In relation to the flower selling business,
he claimed that he never made more than $80 per week from
flower selling, and in some weeks that he did not make
anything.
15. He admitted in the course of his evidence that he
was capable of carrying on a business of retail selling
of flowers from the roadside vans, but he claimed that he
was unable to do this on a regular basis. In relation to
the flower selling business he said that he has a
hawker's licence but the police do not allow him to
remain in one place for more than a limited period, said
to be half an hour. He said in practice that he stays in
a position for one to two hours and then moves on, or
sometimes the police move him on. When asked where he
obtained the money for his licence his response was that
he had robbed a bank. He also said in evidence that he
had ceased trading in flowers in November 1992. He did
not explain the coincidence between the cessation of
selling flowers and the action of the Department and the
Australian Taxation Office in relation to his flower
selling activities. Evidence by Michael James Nolan
established that the applicant regularly operated a
flower stall on the side of the Monaro Highway by selling
from a van. Mr Nolan said that he had observed the
applicant regularly between February 1991 and up to about
May 1993. He said that he understood the van was now at
a different location but he had not seen the applicant
there.
16. The only remaining issue I have to decide is whether
the applicant has a continuing inability to work. It is
clear enough on the medical evidence that the applicant
is only capable of performing light duties and I so find.
However, it is also clear on the evidence that the
applicant has been carrying on his own business as a
flower seller, apparently selling on a regular basis and,
I infer, making a reasonable income, notwithstanding the
evidence of the applicant of the contrary. In this
regard I found the applicant to be a most unsatisfactory
witness. Some of his answers to questions during cross-
examination were quite plainly false and I am satisfied
that the applicant has not told the Tribunal a frank and
true account of his affairs. In particular, it seems to
me to be clear that the applicant makes a significant
income from his business and that his business is in fact
reasonably successful, given the nature of the business.
I am also satisfied that the business is conducted for at
least 40 hours on average per week although the hours
will vary from week to week....
18. I am satisfied, and so find, that the applicant has
a continuing ability to work and he evidences this by
conducting his own profitable business. I am satisfied
that the applicant is therefore outside the terms of sub-
section 94(1) of the Act, and I so find."
The application, which was filed by the applicant in
person, identified the question of law raised by the
application as being "whether the decision of the
Administrative Appeals Tribunal is so unreasonable as not to
have been made in accordance with law". The application seeks
an order that the decision of the Tribunal be set aside and
the claim for disability support pension be upheld. The
ground relied upon is set out in the application in the
following terms:
"The 'Reasons for Decision' reveal that relevant facts
were not adverted to and facts in error were relied upon
in making the decision the applicant wishes to have set
aside. The applicant therefore contends the decision of
the AAT is so unreasonable as to be defectively made at
law."
On the hearing of the application, the applicant
appeared in person. Mrs J. Bonsey appeared on behalf of the
respondent.
The Tribunal had before it documentary material and
oral evidence from the applicant and Michael Nolan, an officer
of the Department of Social Security. The documentary
material included two file notes prepared by Mr Nolan. The
earlier of these notes (Document 122), which is undated,
reads:
"The client and his wife Maria Boskovic were interviewed
by M Nolan and S. Ross at Area South West Office on 18-1-
91. This interview was a follow on from interviews
conducted as part of a joint DSS-ATO project in December
1990 when they were interviewed at their roadside flower
stalls, Jerry at Monaro Highway Hume and Maria at Dairy
Flat Road Piallago.
They were requested to provide financial details such as
bank accounts/balances and details of car purchases and
tax returns. They only provided one bank account each
(see note on file).
Stated that maximum profit was about $100 per week
" "they worked 4 or 5 days per week from
approx 3pm till 7pm weekdays
Jerry purchases the stock either at Flemington
markets (Sydney) or at Fyshwick or Queanbeyan (Qbn -
years ago)
The flowers are stored under the house to preserve
them
Stock purchased at Flemington cannot be verified as
the operators require cash and do not issue receipts
Clients advised to provide the department with
income/expenditure records in order for us to be
able to determine correct rate of benefit
Client requested to provide a tax return to ATO
Client did advise that he sold flowers at time of
grant."
The later file note (Document 1T24), dated 28 March
1991, is in the following terms:
"The
above named [Jerry Boscovic] had been' under
investigation by this department in conjunction with a
joint project conducted with the Australian Taxation
Office.
I request with [sic] the following points be considered
when assessing his invalidity status.
Mr Boskovic has been involved in flower selling from
a roadside van since 23 February 1988.
Mr Boskovic has been observed undertaking this
activity 4 and 5 days per week and on weekends since
November 1990.
. Mr Boskovic has been interviewed about his
activities and volunteered the following
information: He drives himself to his roadside
location everyday from his premises and he also
drives to Sydney between once a week and once a
fortnight to purchase stock.
Mr Boskovic works from approx 2 p.m. until approx 7
p.m.
. He has also been working 'full' days being observed
in the morning and again in the evening on some
occasions.
. Mr Boskovic has a full drivers licence.
. Mr Boskovic employed a walking stick when he
attended this office and appeared to have some
difficulty walking. However on the numerous
occasions that he was observed at 'work' there was
no evidence of him utilizing the aid nor were his
movements noticeably restricted."
In his oral evidence, Mr Nolan said that he knew the
applicant, having interviewed him twice: that, between about
February 1991 and up until approximately April/May 1993, when
driving home from work from Queanbeyan to Theodore via the
Monaro Highway, sometimes driving his car and other times as a
passenger, he had observed the applicant apparently "operating
a roadside flower vending van": that he had also seen him on
some Saturdays and Sundays at the same location; that often
the van was not there on a Monday; and that he purchased
flowers from the applicant at the site on one occasion and
interviewed him there on another.
The applicant challenged the statement in Mr Nolan's
file note dated 28 March 1991 that he, Boscovic, had "a full
drivers licence", asserting that his licence had _ been
cancelled in 1990 and had only been regained in September
1993. Mr Nolan's response was that, on the occasion when the
applicant was interviewed by him in company with an officer of
the Australian Taxation Office, the applicant had produced a
document to that officer in response to a request to produce
his driver's licence. Mr Nolan, however, acknowledged that he
had not inspected the document. It may also be observed that
the applicant's evidence included evidence from which it could
be inferred that he had driven his vehicle on a number of
occasions during the period when he did not have a licence.
It was clearly consistent with his evidence that, from time to
time, friends had driven the vehicle in the course of carrying
on the business when he was not licensed to do so.
In my opinion, there was evidence before the
Tribunal which, if accepted, would support a finding that,
over a considerable period of time from 1988 onwards, the
applicant was gainfully employed in conducting a roadside
flower selling business. Clearly, the Tribunal accepted that
evidence, reinforced as it was in material respects by what
the applicant said in his oral evidence, in the formulation of
questions that he asked of Mr Nolan in cross-examination and
in his submissions. Its finding in that regard cannot be said
to be so unreasonable that no reasonable person could have so
found.
In pars 14 and 15 of its reasons for decision, the
Tribunal considered the applicant's contention that the
roadside flower selling business was not carried on on a
regular basis because his disabilities did not enable him to
do so and the further contention that the business was only
marginally profitable. It is clear that the Tribunal rejected
both contentions. Upon a careful reading of the whole of the
material before the Tribunal I am satisfied that there was
ample material before it upon which it could properly reject
both contentions. I am unable to conclude that to do so was
so unreasonable that no reasonable person could have done so.
The Tribunal clearly did not accept the applicant's
evidence that success at gambling was the source of the funds
utilised to purchase various motor vehicles that the applicant
or his wife operated from time to time. Before the Court, the
applicant submitted that the Tribunal should have adjourned
the hearing before it to enable him to adduce evidence to show
that he had won substantial sums of money gambling at various
clubs. He sought to tender before the Court material which he
said supported that submission. The material was not received
into evidence but I have considered whether the Tribunal erred
in refusing an adjournment of the hearing. Having read the
transcript of the proceedings before the Tribunal I am
satisfied that the Tribunal's refusal to grant an adjournment
discloses no error of law on its part warranting the
intervention of the Court.
The applicant's contention that the decision of the
Tribunal is unreasonable in the Wednesbury sense appears to
stem largely from his conviction that the issue before the
Tribunal upon which it found against him was concluded in his
favour by the expressions of opinion contained in the report
by Dr R.J. Kitchin dated 23 August 1993 and the occupational
psychology report of Dr B. Hodge dated 11 October 1993. Dr
Kitchin, having examined the applicant expressed his
conclusion as follows:
"All these impairments in my view add up to more [than]
20% physical impairment"
and added:
"and this constitutes a continuing inability to work."
It is clear from an examination of Dr Kitchin's report that he
was concerned only with the question whether the applicant
satisfied the qualifications prescribed by pars (a) and (b) of
subs.94(1) of the Social Security Act 1991. His reference to
the applicant's continuing inability to work was stated as a
conclusion based solely on the degree of impairment he found.
It was not based on any material relating to the activities in
which the applicant had engaged at the material times.
Similarly, the fact that Dr Hodge was prepared to support the
applicant's appeal to the Tribunal against the cancellation of
his disability support pension was but a factor to which the
Tribunal might have regard. Clearly, Dr Hodge did not have
before him the whole of the material placed before the
Tribunal.
For these reasons,
The applicant must pay the
application.
the application is dismissed.
respondent's costs of the
I certify that this and the preceding
12 pages are a true copy of the
Reasons for Judgment herein of the
Honourable Justire Neaves. -
Dated:
29 November 1994
The applicant appeared in person.
Counsel for the respondent
Solicitor for the respondent
Date of hearing
Date of judgment
Mrs J. Bonsey
Australian Government
Solicitor
21 October 1994
29 November 1994
#
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JUDGFS* CHAMBERS
FEDERAL COURI OF AUSTRALIA . —--
}
NIanee J.
JUDGMENT No. suo 2eDoal lta
CATCHWORDS
ERVICES - Disability support pension - Pension paid
until decision taken that pension be cancelled - Decision
affirmed by Administrative Appeals Tribunal - Appeal to
Court - Question whether Tribunal's decision that applicant
did not have a continuing inability to work so unreasonable
that no reasonable person could have arrived at it
Administrative Appeals Tribunal Act 1975 (Cth), subs _44(1)
ocial Security Act 19 th s_ 94
ERRY JEREMIAH RDAN SCOVIC v THE SECRETARY, DEPARTMENT OF
SOCIAL SECURITY
No. ACT G 41 of 1994
Neaves J.
29 November 1994
Canberra
RECEIVED
- 6DEC 1994
FEDERAL COURT OF
AUSTRALIA
PRINCIPAL
REGISTRY
No. ACT G 41 of 1994
PE. F THE GE ADMINT TIVE
Vv. IN, M. RATIVE TR
BETWEEN: ERRY EMIAH B VI
Applicant
AND: HE Y, D F
SOCIAL SECURITY
Respondent
INUT. F ORDER
Neaves J.
PATE OF ORDER Fy 29 November 1994
Canberra
:
E R IRDER; Ts
1. The application be dismissed.
2. There be no order as to costs.
Note: Settlement and entry of orders is dealt with in Order
36 of the Federal Court Rules.
No. ACT G 41 of 1994
DISTRICT REGISTRY
GENERAL DIVISION
IN 'AL FROM THE GENERAL ADMINISTRATIVE
Vv IN VE_APP TRIBUNAL
BETWEEN: JERRY JEREMIAH JORDAN BOSCOVIC
Applicant
AND: 'H E TARY, DEPAR' Tv
SOCIAL SECURITY
Respondent
CORAM: Neaves J.
DATE: 29 November 1994
A MENT
This is an application by way of appeal pursuant to
s.44(1) of the Administrative Appeals Tribunal Act 1975 (Cth)
by Jerry Jeremiah Jordan Boscovic ("the applicant") from the
decision of the Administrative Appeals Tribunal given on 23
May 1994 in relation to the applicant's entitlement to a
disability support pension under the Social Security Act 1991
(Cth).
The history of the matter may be shortly stated.
The applicant was granted an invalid pension under Part IV of
the Social Security Act 1947 (Cth) with effect from 3 March
1988. Invalid pension was paid under that Act until its
repeal upon the coming into operation on 1 July 1991 of the
Social Security Act 1991 (see Social Security (Rewrite)
Transition Act 1991 (Cwlth), 8.3). Payment of the pension
continued thereafter under Part 2.3 of the Social Security Act
1991. By the Social Security (Disability and Sickness
Support) Amendment Act 1991 (Cth), Part 2.3 of the Social
Security Act 1991 relating to the payment of invalid pension
was repealed and substituted. The substituted provisions,
which relate to the payment of disability support pension,
came into operation on 12 November 1991. A disability support
pension was paid to the applicant under the substituted
provisions (see clause 33 in Schedule 1A to the Social
Security Act 1991, that clause having been inserted by s.23 of
the Social Security (Disability and Sickness Support)
Amendment Act 1991). Payment of that pension continued until
the decision was taken by a delegate of the respondent on 3
November 1992 to cancel the pension, the cancellation to take
effect following the payment which was to be made on 5
November 1992. The pension was cancelled on the ground that
the level of the applicant's impairment was not of 20% or more
under the Impairment Tables. The decision to cancel the
disability support pension was affirmed by an Authorised
Review Officer on 25 February 1993 but on a different ground,
namely on the ground that, although the applicant's impairment
was of 20% or more under the Impairment Tables, he no longer
had a continuing inability to work. The decision of the
Authorised Review Officer was affirmed by the Social Security
Appeals Tribunal on 14 April 1993 and by the Administrative
Appeals Tribunal ("the Tribunal") on 23 May 1994.
The qualifications for disability support pension
are prescribed by s.94 of the Social Security Act 1991. At
the material time, that section relevantly provided:
"94,
support pension if:
(a)
(b)
(c)
(d)
(e)
(2)
(a)
(1) A person is qualified for disability
the person has a physical, intellectual or
psychiatric impairment; and
the person's impairment is of 20% or more under
the Impairment Tables; and
the person has a continuing inability to work;
and
the person has turned 16; and
the person either:
(i)
(ii)
(444)
is an Australian resident at the time
when the person first satisfies
paragraphs (a), (b) and (c); or
has 10 years qualifying Australian
residence; or
is born outside Australia and, at the
time when the person first satisfies
paragraphs (a), (b) and (c), the
person:
(A) is not an Australian
resident; and
(B) is a dependent child of an
Australian resident;
and the person becomes an Australian
resident while a dependent child of
an Australian resident.
A person has a continuing inability to work if
the Secretary is satisfied that:
the person's impairment is of itself sufficient
to prevent the person from doing:
(4)
(ii)
the person's usual work; and
work for which the _ person is
currently skilled;
for at least 2 years; and
(b) either:
(i) the person's impairment is of itself
sufficient to prevent the person from
undertaking educational or vocational
training during the next 2 years; or
(ii) the person's impairment does not
prevent the person from undertaking
educational or vocational training
but such training is not likely to
equip the person, within the next 2
years, to do work for which the
person is currently unskilled.
(5) In this section:
'work' means work:
(a) that is for at least 30 hours per week at award
wages or above; and
(b) that exists in Australia, even if not within
the person's locally accessible labour market.
It is not now in dispute that at the material time
the applicant satisfied the qualifications prescribed by pars
(a), (b), (d) and (e) of subs.94(1). The dispute between the
parties centres on the qualification prescribed by par.(c) of
that subsection. The issue was discussed by the Tribunal in
the following paragraphs of its reasons for decision:
"6. Document T24 is a report by Mr Nolan in the
Department of Social Security about an investigation
being conducted by the Department in conjunction with the
Australian Taxation Office. The gist of that report is
that the applicant had been found to be involved in a
roadside flower selling business since February 1988 and,
in particular, had been observed undertaking this
activity for some period from November 1990. As a
consequence the applicant has been interviewed about his
activities and has advised Mr Nolan that he drove his van
to the roadside location every day from his home and that
he also drives to Sydney once a week to purchase stock.
He apparently stated that he works from 2 pm until 7 pm
each day, and sometimes works longer hours. The
applicant has a full drivers licence.
7. In his evidence before the Tribunal the applicant
basically confirmed Mr Nolan's report as to the roadside
flower selling business and also indicated that his wife
participated in the selling activity but at different
sites. He agreed in his evidence that he travels to
Sydney for the purpose of buying flowers at the Sydney
market and that his purchase of stock each week would be
in the vicinity of $600. He claimed that these flowers
were then sold at a mark-up which netted him about $800
as gross proceeds, that is, $200 gross profit on the
transaction.
were
14. The applicant sought to convince me that the
roadside flower selling business is only marginally
profitable and is a very undemanding business suited to a
person with his incapacity. I have some difficulty with
this and I will explain why. Exhibit 1 is a bundle of
papers concerning the financing of a purchase of a Suzuki
Super Carry Van purchased from Slaven Motors in 1989. In
his statement to the finance company, Australian
Guarantee, the applicant said that his gross income from
his self-employed florist business was $500 per week.
Repayments on the van were said to be $366 per month, to
be paid over three years. That van was subsequently
traded in on a Nissan van. The applicant said in his
evidence that the Nissan van was bought as a new vehicle
in 1990. The applicant also said in his evidence that he
had purchased a Ford Econovan as a new vehicle for
$23,900 cash. When asked where he obtained the cash
from, he said it was from gambling. When asked details
about how he obtained this money and how he obtained
further money to buy a Toyota Hi Ace Van in May 1993, he
became evasive in his answers and I formed the view that,
in fact, he was prevaricating. He said, as an
explanation, that he was a professional gambler and that
he did very well as a gambler, and that was the source of
his income. In relation to the flower selling business,
he claimed that he never made more than $80 per week from
flower selling, and in some weeks that he did not make
anything.
15. He admitted in the course of his evidence that he
was capable of carrying on a business of retail selling
of flowers from the roadside vans, but he claimed that he
was unable to do this on a regular basis. In relation to
the flower selling business he said that he has a
hawker's licence but the police do not allow him to
remain in one place for more than a limited period, said
to be half an hour. He said in practice that he stays in
a position for one to two hours and then moves on, or
sometimes the police move him on. When asked where he
obtained the money for his licence his response was that
he had robbed a bank. He also said in evidence that he
had ceased trading in flowers in November 1992. He did
not explain the coincidence between the cessation of
selling flowers and the action of the Department and the
Australian Taxation Office in relation to his flower
selling activities. Evidence by Michael James Nolan
established that the applicant regularly operated a
flower stall on the side of the Monaro Highway by selling
from a van. Mr Nolan said that he had observed the
applicant regularly between February 1991 and up to about
May 1993. He said that he understood the van was now at
a different location but he had not seen the applicant
there.
16. The only remaining issue I have to decide is whether
the applicant has a continuing inability to work. It is
clear enough on the medical evidence that the applicant
is only capable of performing light duties and I so find.
However, it is also clear on the evidence that the
applicant has been carrying on his own business as a
flower seller, apparently selling on a regular basis and,
I infer, making a reasonable income, notwithstanding the
evidence of the applicant of the contrary. In this
regard I found the applicant to be a most unsatisfactory
witness. Some of his answers to questions during cross-
examination were quite plainly false and I am satisfied
that the applicant has not told the Tribunal a frank and
true account of his affairs. In particular, it seems to
me to be clear that the applicant makes a significant
income from his business and that his business is in fact
reasonably successful, given the nature of the business.
I am also satisfied that the business is conducted for at
least 40 hours on average per week although the hours
will vary from week to week....
18. I am satisfied, and so find, that the applicant has
a continuing ability to work and he evidences this by
conducting his own profitable business. I am satisfied
that the applicant is therefore outside the terms of sub-
section 94(1) of the Act, and I so find."
The application, which was filed by the applicant in
person, identified the question of law raised by the
application as being "whether the decision of the
Administrative Appeals Tribunal is so unreasonable as not to
have been made in accordance with law". The application seeks
an order that the decision of the Tribunal be set aside and
the claim for disability support pension be upheld. The
ground relied upon is set out in the application in the
following terms:
"The 'Reasons for Decision' reveal that relevant facts
were not adverted to and facts in error were relied upon
in making the decision the applicant wishes to have set
aside. The applicant therefore contends the decision of
the AAT is so unreasonable as to be defectively made at
law."
On the hearing of the application, the applicant
appeared in person. Mrs J. Bonsey appeared on behalf of the
respondent.
The Tribunal had before it documentary material and
oral evidence from the applicant and Michael Nolan, an officer
of the Department of Social Security. The documentary
material included two file notes prepared by Mr Nolan. The
earlier of these notes (Document 1722), which is undated,
reads:
"The client and his wife Maria Boskovic were interviewed
by M Nolan and S. Ross at Area South West Office on 18-1-
91. This interview was a follow on from interviews
conducted as part of a joint DSS-ATO project in December
1990 when they were interviewed at their roadside flower
stalls, Jerry at Monaro Highway Hume and Maria at Dairy
Flat Road Piallago.
They were requested to provide financial details such as
bank accounts/balances and details of car purchases and
tax returns. They only provided one bank account each
(see note on file).
Stated that maximum profit was about $100 per week
" " they worked 4 or 5 days per week from
approx 3pm till 7pm weekdays
Jerry purchases the stock either at Flemington
markets (Sydney) or at Fyshwick or Queanbeyan (Qbn -
years ago)
The flowers are stored under the house to preserve
them
Stock purchased at Flemington cannot be verified as
the operators require cash and do not issue receipts
Clients advised to provide the department with
income/expenditure records in order for us to be
able to determine correct rate of benefit
Client requested to provide a tax return to ATO
Client did advise that he sold flowers at time of
grant."
The later file note (Document 124), dated 28 March
1991, is in the following terms:
"The
above named [Jerry Boscovic] had been' under
investigation by this department in conjunction with a
joint project conducted with the Australian Taxation
Office.
I request with [sic] the following points be considered
when assessing his invalidity status.
Mr Boskovic has been involved in flower selling from
a roadside van since 23 February 1988.
Mr Boskovic has been observed undertaking this
activity 4 and 5 days per week and on weekends since
November 1990.
Mr Boskovic has been interviewed about his
activities and volunteered the following
information: He drives himself to his roadside
location everyday from his premises and he also
drives to Sydney between once a week and once a
fortnight to purchase stock.
. Mr Boskovic works from approx 2 p.m. until approx 7
p-m,
. He has also been working 'full' days being observed
in the morning and again in the evening on some
occasions.
. Mr Boskovic has a full drivers licence.
. Mr Boskovic employed a walking stick when he
attended this office and appeared to have some
difficulty walking. However on the numerous
occasions that he was observed at 'work' there was
no evidence of him utilizing the aid nor were his
movements noticeably restricted."
In his oral evidence, Mr Nolan said that he knew the
applicant, having interviewed him twice: that, between about
February 1991 and up until approximately April/May 1993, when
driving home from work from Queanbeyan to Theodore via the
Monaro Highway, sometimes driving his car and other times as a
passenger, he had observed the applicant apparently "operating
a roadside flower vending van": that he had also seen him on
some Saturdays and Sundays at the same location; that often
the van was not there on a Monday; and that he purchased
flowers from the applicant at the site on one occasion and
interviewed him there on another.
The applicant challenged the statement in Mr Nolan's
file note dated 28 March 1991 that he, Boscovic, had "a full
drivers licence", asserting that his licence had _ been
cancelled in 1990 and had only been regained in September
1993. Mr Nolan's response was that, on the occasion when the
applicant was interviewed by him in company with an officer of
the Australian Taxation Office, the applicant had produced a
document to that officer in response to a request to produce
his driver's licence. Mr Nolan, however, acknowledged that he
had not inspected the document. It may also be observed that
the applicant's evidence included evidence from which it could
be inferred that he had driven his vehicle on a number of
occasions during the period when he did not have a licence.
It was clearly consistent with his evidence that, from time to
time, friends had driven the vehicle in the course of carrying
on the business when he was not licensed to do so.
In my opinion, there was evidence before' the
Tribunal which, if accepted, would support a finding that,
over a considerable period of time from 1988 onwards, the
applicant was gainfully employed in conducting a roadside
flower selling business. Clearly, the Tribunal accepted that
evidence, reinforced as it was in material respects by what
the applicant said in his oral evidence, in the formulation of
questions that he asked of Mr Nolan in cross-examination and
in his submissions. Its finding in that regard cannot be said
to be so unreasonable that no reasonable person could have so
found.
In pars 14 and 15 of its reasons for decision, the
Tribunal considered the applicant's contention that the
roadside flower selling business was not carried on on a
regular basis because his disabilities did not enable him to
do so and the further contention that the business was only
marginally profitable. It is clear that the Tribunal rejected
both contentions. Upon a careful reading of the whole of the
material before the Tribunal I am satisfied that there was
ample material before it upon which it could properly reject
both contentions. I am unable to conclude that to do so was
go unreasonable that no reasonable person could have done so.
The Tribunal clearly did not accept the applicant's
evidence that success at gambling was the source of the funds
utilised to purchase various motor vehicles that the applicant
or his wife operated from time to time. Before the Court, the
applicant submitted that the Tribunal should have adjourned
the hearing before it to enable him to adduce evidence to show
that he had won substantial sums of money gambling at various
clubs. He sought to tender before the Court material which he
said supported that submission. The material was not received
into evidence but I have considered whether the Tribunal erred
in refusing an adjournment of the hearing. Having read the
transcript of the proceedings before the Tribunal I am
satisfied that the Tribunal's refusal to grant an adjournment
discloses no error of law on its part warranting the
intervention of the Court.
The applicant's contention that the decision of the
Tribunal is unreasonable in the Wednesbury sense appears to
stem largely from his conviction that the issue before the
Tribunal upon which it found against him was concluded in his
favour by the expressions of opinion contained in the report
by Dr R.J. Kitchin dated 23 August 1993 and the occupational
psychology report of Dr B. Hodge dated 11 October 1993. Dr
Kitchin, having examined the applicant expressed _ his
conclusion as follows:
"All these impairments in my view add up to more [than]
20% physical impairment"
and added:
"and this constitutes a continuing inability to work."
It is clear from an examination of Dr Kitchin's report that he
was concerned only with the question whether the applicant
satisfied the qualifications prescribed by pars (a) and (b) of
subs.94(1) of the Social Security Act 1991. His reference to
the applicant's continuing inability to work was stated as a
conclusion based solely on the degree of impairment he found.
It was not based on any material relating to the activities in
which the applicant had engaged at the material times.
Similarly, the fact that Dr Hodge was prepared to support the
applicant's appeal to the Tribunal against the cancellation of
his disability support pension was but a factor to which the
Tribunal might have regard. Clearly, Dr Hodge did not have
before him the whole of the material placed before the
Tribunal.
For these reasons, the application is dismissed. As
the respondent informed the Court that he did not seek an
order for costs in the event of the application being
dismissed, there will be no order in that regard.
I certify that this and the preceding
12 pages are a true copy of the
Reasons for Judgment herein of the
Honourable Cds ager,
Dated: 29 November 1994
The applicant appeared in person.
Counsel for the respondent : Mrs J. Bonsey
Solicitor for the respondent : Australian Government
Solicitor
21 October 1994
Date of hearing
Date of judgment : 29 November 1994