The Federal Court set aside the AAT's decision in part due to the Tribunal's conceded failure to consider the applicant's submissions on debt write-off and waiver under ss 1236, 1237A and 1237AAD of the Social Security Act 1991, and its inadequate engagement with submissions on excluding medical expenses under s 1184K. The Court ordered a limited remitter, preserving the Tribunal's unchallenged finding that $359,240.41 in legal costs be disregarded, and refusing the respondent the opportunity to re-agitate the legal costs issue on remitter. The Court declined to make findings of fact under s 177 of the ART Act, holding that the applicant's request for new factual findings inconsistent with or beyond those made below was beyond the scope of that power. Leave to raise an additional ground challenging the characterisation of medical expenses as falling outside the s 17(2) definition of 'compensation' was refused for lack of prospects, the Court confirming that where a lump sum settlement is made partly in respect of lost earnings, the 50% deeming rule in s 17(3) applies to the total settlement amount regardless of internal allocation to medical expenses.
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