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Supreme Court of the ACT |
Last Updated: 30 September 2008
HUMAN RIGHTS ACT
THE COMMISSIONER FOR HOUSING IN THE ACT v
Y
[2007] ACTSC 84 (12 October 2007)
LEASING AND TENANCIES – Public Housing Program –
Respondent struck off register but reinstated following review – whether
error of law
– if hardship is raised in relation to the income test, the
hardship test ought to be applied after the question of whether
amounts can be
excluded from eligible income is determined.
HUMAN RIGHTS –
Right to a fair hearing – whether discretionary administrative decisions
subject to judicial review.
Housing Assistance Act 1987, cl 12(1), (2), ss 4, 7
Housing
Assistance Act 2007 (ACT), subs 12(9)
Public Rental Housing Assistance
Program 2006 (No 2), sub cl 9(1)(i), cl 7, 9A, 30
Administrative
Appeals Tribunal Act 1989 (ACT), s 46
Human Rights Act 2004
(ACT), ss 11, 30, 21(1)
Matusiak and Commissioner for Housing [2002] ACTAAT 25 (14 June
2002)
Z and Commissioner for Housing [2007] ACTAAT 12 (29 May
2007)
ON APPEAL FROM THE ACT ADMINISTRATIVE APPEALS TRIBUNAL
No. SCA 42 of 2007
Judge: Higgins CJ
Supreme Court of the ACT
Date: 12 October 2007
IN THE SUPREME COURT OF THE )
) No. SCA 42 of
2007
AUSTRALIAN CAPITAL TERRITORY )
ON APPEAL FROM THE ACT ADMINISTRATIVE APPEALS TRIBUNAL
BETWEEN: THE COMMISSIONER FOR HOUSING IN THE ACT
Applicant
AND: Y
Respondent
ORDER
Judge: Higgins CJ
Date: 12 October 2007
Place: Canberra
THE COURT ORDERS THAT:
1. The application for leave to appeal be refused with costs.
1. This is an application by the Commissioner for Housing in the Australian
Capital Territory (the Commissioner) for leave to appeal
from a decision of the
Australian Capital Territory Administrative Appeals Tribunal (the Tribunal).
The respondent, for privacy
reasons, is referred to as “Y”.
2. On 26 October 2006 a delegate of the Commissioner decided to deny an
appeal by Y against a decision to remove her name from the
Housing Assistance
Register, and to cancel her application for housing assistance. The original
decision was supported, on the internal
review, in the following terms:
[Y] stated that the Statement of Material Facts was correct. [Y] informed the Committee that she felt she was being punished for working. She stated that she did not believe the gross salary should be taken into account as she was paying before and after school care and also child care. [Y] further stated that if she gave up her job and stayed at home she would be better off financially but this went against her own value system. [Y] added that she does not receive a disability allowance for her son as Centrelink do not consider severe asthma and a sleep disorder a severe disability.
[Y] said that the only way she could afford a car was by salary sacrificing as no financial institution would give her a loan as she was a single parent. She needed the car to drop the children at different places on her way to work and would not be able to do this if she relied on public transport. Looking at other work options such as working full time would not be financially beneficial, (because of the increased cost of child care) [Y] stated, and her income was stable now and would not change. [Y]’s rent with Communities @ Work is $180 per week and she said that if she was to rent on the private market if would be over $300 and her budget would be in deficit. [Y] informed the Committee that all she wanted for her children was stability.
Ms Unger informed the Committee that she had done some research on the private rental market and did not believe it was affordable for [Y]. Ms Unger also stated that she believed that [Y] was already struggling and she was concerned about her mental health, which she had seen deteriorate since she heard of the cancellation of her application for housing assistance.
At the end of the interview [Y] brought up another issue. [Y] said that she was advised to stay at home last Friday to sign for her papers but they were not delivered until Monday when they were put in her letterbox. She was concerned that someone else could have accessed these papers.
3. Y appealed to the Tribunal. The Tribunal decided to uphold her appeal. That
decision was handed down, with written reasons,
on 4 May 2007.
4. The matter
involved the application, pursuant to the Housing Assistance Act 1987 (now
replaced by the Housing Assistance Act 2007 (ACT) (HAA)) of the Public Rental
Housing Assistance Program 2006 (No 2) (the Program).
5. The Program sets out
the criteria for the allocation of public housing. They include lawful
residency in Australia, length of
residence in the Australian Capital Territory,
age of the applicant, lack of any proprietary interest in real estate, value of
assets
and income. Income was the issue. Subclause 9(1)(i) of the Program
stated as to that criterion:
If the household is made up of more than 2 people, the weekly income of the applicants plus 10% of the combined weekly income of all other independent people in the household is not more than 75% of AAWE [Australian Average Weekly Earnings] plus 10% of AAWE for each person in the household in excess of 2 people.
6. The threshold as calculated by that formula and applied by the Tribunal was
$720 per week.
7. “Weekly Income” was defined by cl 7 of the
Program:
(1) For this program, the weekly income of an applicant is the greater of -
(a) the person’s gross income each week as at the day the application is made; and
(b) the average gross weekly income of the person in –
(i) the 26-week period immediately before the day when the application is made; or
(ii) another period decided by the commissioner as appropriate in the circumstances of the application.
(2) However, the commissioner may disregard an amount for subclause (1)(a) or (b) if the commissioner considers it appropriate in the circumstances of the application.
8. In addition to the discretion conferred by cl 7(2), cl 9A of the Program provided:
Hardship
If the commissioner is satisfied that an applicant is suffering severe hardship that cannot be alleviated by any other means, the commissioner may disregard any criteria mentioned in clause 9(1) (other than paragraph 9(1)(d) [which related to minimum age]) in deciding whether the applicant is eligible for assistance.
9. The applicant’s case was described by the Tribunal in the following terms:
11. The living situation was made more difficult because the applicant’s son, in addition to being a severe asthmatic, suffers from a disruptive sleep disorder, medically diagnosed as “confusional arousals”, a type of parasomnia, which causes him to scream and shout in his sleep, throw himself around and become inconsolable about 2 hours after going to bed. During this behaviour which the applicant described as resembling a noisy temper tantrum, her son’s confusion while asleep means that he is not responsive to his family during these episodes which can last for up to 20 minutes. There is nothing that can be done to stop the episode once it begins. To wake him is not a solution because it can increase his confusion.
10. The Tribunal noted that the discretion conferred by cl 9A of the Program was not limited to financial hardship. The Tribunal accepted Y’s contention that, in consequence of the commissioner’s decision not to allocate housing to her:
[35] ... [she] suffers the uncertainty and insecurity of knowing that in two months she and her two young children will be homeless when her term in a WHP property comes to an end. I accept the applicant’s evidence that she will not be able to rent in the private market. There is no reason to believe that the availability of rental housing properties has improved since she last unsuccessfully tried to find a property to rent.
11. The other option, returning to the family home, was not an acceptable option
because of domestic abuse. It would, in any event,
have been overcrowded. As
noted above, Y’s son has a disruptive sleep disorder which limits options
for other shared accommodation.
12. The Tribunal accepted that it was
impracticable for Y to work longer hours as any additional income would be
consumed by extra
child-minding fees.
13. In summary, the Tribunal
found:
[42] On the basis of the evidence, I find the above options suggested by the respondent’s representative to be unachievable, undesirable or not viable. Unable to break the car leasing contract without suffering a financial penalty of $16,300 which she does not have the means to pay and cannot cover with a loan, the applicant is effectively locked into the car leasing agreement and thus meets Ms Besemeres’ criterion for “severe hardship”.
And concluded:
[43] ... The totality of the applicant’s situation leads me to conclude that she is suffering severe hardship that cannot be alleviated by any means other than by assistance under the Program and that therefore the discretion available in clause 9A of the Program should be exercised.
14. The Tribunal therefore decided that the applicant be allocated three bedroom
housing in her area of choice on a priority needs
basis.
15. On 1 June 2007,
the Commissioner sought leave to appeal against this decision. That leave is
required by virtue of s 46 of the
Administrative Appeals Tribunal Act 1989 (ACT)
(AAT Act):
(1) A party to a proceeding before the tribunal may appeal to the Supreme Court on a question of law from a decision of the tribunal in the proceeding.
(2) The appeal may be brought only with the Supreme Court’s leave.
16. The Commissioner contends that the decision of the Tribunal was affected by
several errors of law.
17. First, that the decision not to exercise the
discretion under cl 9A of the Program was not reviewable by the Commissioner and
hence not reviewable by the Tribunal by reason of cl 30 of the
Program.
18. Second, it was contended, the Tribunal had impermissibly placed
the onus of proof upon the Commissioner to establish factual matters
relevant to
the exercise of discretion under cl 9A of the Program.
19. Third, it was
contended that the power of the Tribunal did not extend to directing a
particular category of accommodation.
Reviewability of exercise of cl 9A discretion
20. The Program was prepared pursuant to s 12(1) of the Housing Assistance Act 1987 (ACT) (HA Act). That Act is soon to be superseded by the Housing Assistance Act 2007. Subsection 12(9) of the HA Act provides:
The following instruments are disallowable instruments:
(a) a program, if the program has been approved by the Minister;
(b) an amendment or revocation of the program, if the amendment or revocation has been approved by the Minister;
(c) a determination by the commissioner of fees payable under a program.
21. By virtue of ss 4 and 7 of the HA Act, the Commissioner is a public servant
and a corporation sole.
22. The Program makes express provision for some
decisions of the Commissioner to be “reviewable decisions”. That is
to say, decisions the Commissioner may review whether personally or after
recommendation from the Housing Review Committee (see cl
26 of the Program).
23. Clause 27 of the Program defines what are “reviewable
decisions”. In cl 27(1)(a) there is included for that purpose:
... a decision about an application for assistance, not including a decision under clause 9A ...
24. Clause 9A provides:
If the commissioner is satisfied that an applicant is suffering severe hardship that cannot be alleviated by any other means, the commissioner may disregard any criteria mentioned in cl 9(1) (other than paragraph 9(1)(d)) in deciding whether the applicant is eligible for assistance.
25. Clause 9(1)(d) of the Program is not applicable to Y.
26. The
Commissioner, notwithstanding cl 27(1)(a) of the Program, in fact reviewed and
confirmed the original decision not to exercise
the discretion conferred by cl
9A in favour of the applicant.
27. The decision to review and confirm the
original decision thus attracted neither cl 28(4) or 28(7) (further
review).
28. It is only a decision under cl 28(7) of the Program that is
expressly stated to be reviewable by the AAT.
29. Subsection 12(2) of the HA
Act permits the Commissioner to provide in a Program for review of stated
decisions by way of reconsideration
and by way of review thereof by the
AAT.
30. Section 24 of the AAT Act confers power upon the AAT to review
certain administrative decisions. It provides:
24. Tribunal may review certain decisions
(1) An enactment may provide that applications may be made to the tribunal -
(a) for review of decisions made in the exercise of powers conferred by that enactment; or
(b) for the review of decisions made in the exercise of powers conferred, or that may be conferred, by another enactment having effect under that enactment.
(2) If an enactment makes provision in acordance with subsection (1), that enactment -
(a) shall specify the person to whose decisions the provision applies;
(b) may be expressed to apply to all decisions of a person, or to specified decisions of that person; and
(c) may specify conditions subject to which applications may be made.
(3) If an enactment makes provision in accordance with this section for making applications to the tribunal for the review of decisions by a person made in the exercise of a power given to the person, the provision also applies to decisions made in the exercise of the power by anyone else who is lawfully authorised to exercise the power.
(4) The tribunal has power to review any decision in relation to which application is made to it under any enactment.
(5) In a proceeding in relation to a decision of the Minister or Executive under the Land (Planning and Environment) Act 1991, the tribunal may review any decision of a concurring authority within the meaning of that Act.
(6) For an enactment that makes provision in accordance with this section for the making of applications to the tribunal for review of decisions, a failure by a person to do an act or thing within the period prescribed by that enactment, or by another enactment having effect under that enactment, as the period within which that person is required or permitted to do that act or thing shall be taken to be the making of a decision by that person at the end of that period not to do that act or thing.
(7) If an enactment provides for applications to the tribunal, that enactment may also include provisions adding to, excluding or modifying the operation of any of the provisions of sections 19, 19A, 20, 21, 25, 27, 28, 31, 32, 34, 39A (1) and 44 (1) and (3) in relation to such applications, and those provisions have effect subject to any provisions so included.
(8) The operation of a provision of section 20 shall not be taken to be excluded or modified by an enactment unless the enactment makes express provision for the exclusion or modification of the operation of that provision.
31. Neither the HA Act nor the Program provided for a review of a cl 9A decision. However, there was reference in the decision under review to cl 7 of the Program. It was submitted cl 7 could be applied. That provides:
(1) For this program, the weekly income of an applicant is the greater of—
(a) the person’s gross income each week as at the day the application is made; and
(b) the average gross weekly income of the person in—
(i) the 26-week period immediately before the day when the application is made; or
(ii) another period decided by the commissioner as appropriate in the circumstances of the application.
(2) However, the commissioner may disregard an amount for subclause (1) (a) or (b) if the commissioner considers it is appropriate in the circumstances of the application.
32. A decision under cl 7(2) of the Program is a reviewable decision for the
purposes of s 24 AAT Act. The applicant’s
case before the Tribunal
primarily rested on cl 9A but also relied on cl 7(2). The discretion conferred
by cl 9A relates to any
of the eligibility criteria not met by an applicant,
including, but not limited to, the level of weekly income.
33. However, if
the “weekly income” had been found by the Commissioner to be a
figure which after the application of cl
7(2) fell below the eligibility limit,
then cl 9(g), (h) or (i) would have been satisfied without the need to apply cl
9A.
34. The Tribunal approached the issue in reverse to this process of
reasoning. It determined that cl 9A should be applied so that
cl 7(2) did not
need to be considered.
35. Counsel for the Commissioner did not refer the
Tribunal to cl 30 of the Program. She did, however, submit that cl 7(2) of the
Program should not “overrule” cl 9 in relation to the criterion as
to income.
36. Matusiak and Commissioner for Housing [2002] ACTAAT 25 (14
June 2002) was referred to as authority for that submission. That decision is
not, of course, binding on me.
37. The facts in Matusiak (supra) were that
the applicant slightly exceeded the income limit for eligibility. It was a
previous Program,
not the current one, that applied. There was a discretion (cl
14 of that previous Program) to disregard stated criteria and make
an order on
the basis that severe hardship to the applicant could not be alleviated by any
other means. The Tribunal considered
that to be the appropriate and applicable
test to apply rather than disregarding part of the income. It had been
suggested that
higher than usual medical expenses could be considered so as to
disregard that part of the applicant’s income so as to bring
the
applicant’s household income under the income limit. However, the
Program, as by then approved, permitted the Commissioner
to disregard for the
purposes of the income test only “income of a kind which the Commissioner
has determined should be disregarded
for the purposes of this
Program”.
38. That was a discretion with respect to classes of income,
not, as in cl 7(2) of the current Program, a discretion based on a judgment
as
to whether the circumstances make it “appropriate” to disregard an
amount which otherwise would be counted as income.
39. Under the previous
Program applicable in Matusiak (supra) any decision of the Commissioner
“disallowing an objection”
or refusing an application to consider an
objection out of time was declared to be capable of review by the Tribunal. The
current
program creates a specific discretion to disregard amounts of income in
a particular case. That expressly overrules the Tribunal’s
view in
Matusiak (supra) that:
[46] Income tests of this kind cannot, in the Tribunal’s view, be adjusted on a case by case basis. Such an approach would place unreasonable burdens on the Commissioner and delegates of the Commissioner. There could be a wide variety of financial circumstances that might be advanced to argue for special treatment and, in the Tribunal’s view, to admit any one of them for consideration would make it impossible to apply the eligibility test fairly.
[47] The better approach is to consider the application of clause 14 of the Program, which allows the Commissioner to disregard any of the criteria specified in subslcause 5(3) other than paragraph 5(3)(c) [which requires applicants to be 16 years of age or older] for the purpose of determining that an applicant is eligible for assistance or continued assistance under this program if the applicant is suffering severe hardship which cannot be alleviated by any other means.
40. The current Program retains but recasts these discretions. In any event,
the scope of the clause 9A test applies more broadly
than merely to income.
Clause 7(2) does adopt a case by case approach as did the previous
Program’s cl 14.
41. I have no doubt that Matusiak (supra) would have
been more objectively and easily determined in favour of the applicant in that
case by simply disregarding part of the applicant’s income rather than
addressing the more difficult question of hardship not
able to be alleviated by
any other means. Nevertheless, that was the approach taken.
42. It is, of
course, open to the Commissioner to consider hardship, as well as any other
relevant circumstance, in determining whether
to disregard any part of income
otherwise relevant.
43. In the present case, I am in agreement with the
Commissioner’s submission that the cl 9A decision was not reviewable
by the Tribunal but I am also of the opinion that the Commissioner could have
determined to disregard the car lease payments under
cl 7(2) of the Program
with the result that the income test would have been met.
44. I am further of
the view that, on the facts found by the Tribunal, such a finding would have
been appropriate, if not inevitable,
and would certainly have been the
preferable decision.
45. Mr Sharwood, for the Commissioner, also referred to
Z and Commissioner for Housing [2007] ACTAAT 12 (29 May 2007) in support of a
contention that the discretion under cl 7(2) of the Program was not available
where cl 9A would be
an applicable source for the exercise of discretion by the
Commissioner as to the income barrier.
46. In Z (supra), the Commissioner
declined to find that the discretion to waive the income barrier should be
exercised. The applicant
had sought a four bedroom house rather than the three
bedroom house she had been allocated. That, in reality, sought to activate
cl
10 of the Program (needs categories). Her application disclosed that she now
exceeded the newly lowered income barrier. Her
eligibility for assistance was
therefore cancelled. A review by the Housing Review Committee recommended the
requested transfer
under cl 24(1) of the Program be granted and that the
cancellation be reversed, recommending that the Commissioner disregard the
excess income by virtue of cl 7(2) of the Program.
47. The Tribunal in that
case noted, correctly as I have found, that it could not review a decision of
the Commissioner made pursuant
to cl 9A. The Tribunal further noted the impact
of ss 11 and 30 of the Human Rights Act 2004 (ACT) (the HR Act), recognizing the
entitlement of the family unit to protection as well as the rights of children
to protection.
48. Those rights require that the rights of a family, and of
children in particular, to secure and appropriate housing be recognised
and that
Territory laws be so interpreted so as to preserve and advance those rights
where possible.
49. In that case the Tribunal interpreted cl 7(2) of the
Program by reference to the statement in the Explanatory Memorandum:
The previous arrangements required the Commissioner to treat a person’s income as the greater of current gross weekly income and average gross weekly income over the previous 26 weeks. That approach provided no flexibility to a range of applicants who are not in regular employment with a consistent pattern of salary or wage payments, or people whose circumstances, for some other reason, do not fit the normal pattern.
50. However, the wording of cl 7(2) of the Program is clear. It is not in terms
confined to the two examples referred to in the
Explanatory Memorandum. It is
clear that treating two cases alike based merely upon a comparison of the
figures generated by the
criteria referred to in cl 9(g), (h) or (i) would
create injustice. Certainly, a general relaxation or exclusion might be decided
upon under cl 6(2) of the Program but that would leave unaddressed the question
of substantive justice in the individual case which
can be catered for only
under cl 7(2) or cl 9A. Clause 9A is a general power, the exercise of which is
not reviewable, to dispense
with the application of the criteria for
eligibility. Clause 7(2) is confined to one only of those criteria and is
antecedent to
the application or not of cl 9A.
51. Section 21(1) of the HR
Act confers the right upon all persons to have their rights and obligations
decided by a competent, independent
and impartial court or tribunal. That, of
course, is not conclusive but it indicates to me that if an applicant for
assistance needs
to have a discretionary decision applied to them to recognise
the comparative justice of their claim to secure appropriate shelter
so as to
avoid otherwise severe and unavoidable hardship then a process that attracts a
review would be preferable to that of an
unexaminable discretion by a single
public official.
52. The decision in Z seems to me contrary to the preferred
interpretation of the Program and should not be followed. The purpose
of the
eligibility criteria is not arbitrarily to restrict the scarce resource of
public housing to those who are less in need but
fall within the stated
criteria. Rather it strikes, or seeks to strike, a just balance between those
in greater need falling outside
eligibility criteria compared with those who
might fall within it. It is preferable that the exercise of such a discretion
be reviewable.
That can only be done if a degree of discretion is open to be
exercised. That is the result the HR Act requires and it should be
preferred.
53. It is a reasonable submission to put that if a party claims to fall within
an exception to a general rule, that party bears the
onus of establishing that
proposition.
54. Insofar as Y bore the onus to show severe hardship under cl
9A of the Program she did so. Whether or not cl 7(2) of the Program
laid down
such a high barrier as that, it was no greater and she certainly exceeded it.
There is no indication that the Tribunal,
as a finder of fact, failed to place
the onus of proof of that hardship on the applicant.
55. This relates to the decision specifying Y’s needs for housing and
their priority. That could only be done if Y was an
eligible applicant. The
Commissioner found she was not and, hence, the discretion to decide that
question did not fall to be exercised.
56. However, the Tribunal did find,
albeit in reliance on cl 9A rather than cl 7(2), that Y was an eligible
applicant. She was clearly
in urgent need. It was, therefore, open to the
Tribunal, standing in the shoes of the Commissioner, to decide to exercise the
consequential
discretion under cl 10 of the Program.
57. The Tribunal did make an error of law. However, that error was not such as
to have prevented it make the orders it made had
it proceeded on a correct view
of the law and applied cl 7(2) of the Program. That error, in any event, was
facilitated by the failure
of the Commissioner to point to cl 27(1)(a) of the
Program in the proceedings before the Tribunal, thus leading the Tribunal to
assume
that the Commissioner’s decision was reviewable by virtue of cl
30.
58. In my view, as a matter of discretion, the application for leave to
appeal should be refused with costs notwithstanding that grounds
have been made
out for the relief sought.
I certify that the preceding fifty-eight (58) numbered paragraphs are a true copy of the Reasons for Judgment herein of his Honour, Chief Justice Higgins.
Associate:
Date: 12 October 2007
Counsel for the applicant: Mr W Sharwood
Solicitor for the plaintiff: ACT
Government Solicitor’s Office
Counsel for the defendant: Mr DJC
Mossop
Solicitor for the defendant: Welfare Rights & Legal Centre
Limited
Date of hearing: 6 July 2007
Date of judgment: 12 October
2007
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