Al Obaidi and Secretary, Department of Social Services (Social services second review)

This matter concerned an appeal by Ms Al Obaidi against a decision of the Social Security Appeals Tribunal (SSAT), as varied on 12 November 2015. The core dispute revolved around whether Ms Al Obaidi had been overpaid her Disability Support Pension (DSP) and whether any resulting debt to the Commonwealth could be waived or written off. The proceedings were heard by A Poljak SM.

The Tribunal was required to determine four key issues: first, whether Ms Al Obaidi was a member of a couple during the period from 27 October 2007 to 30 October 2012; second, whether she had been overpaid DSP between 15 November 2006 and 6 November 2012; third, if an overpayment occurred, whether it constituted a debt due to the Commonwealth; and fourth, whether that debt could be waived or written off.

The Tribunal found that Ms Al Obaidi was indeed a member of a couple for the specified period, a fact she conceded during the proceedings. Furthermore, the evidence revealed a significant discrepancy between her reported income and her actual earnings from employment during the relevant period, as she failed to report income from one employer. This failure to provide accurate income information led to an incorrect calculation of her DSP entitlement, resulting in an overpayment. The Tribunal applied section 1223 of the Social Security Act 1991 (Cth), which establishes that an overpayment obtained by a person is a debt due to the Commonwealth. The Tribunal concluded that the overpayment amounted to $32,521.11, which was a legally recoverable debt.

Finally, the Tribunal considered whether the debt could be waived or written off. Applying section 1237AAD of the Act, the Tribunal determined that Ms Al Obaidi did not satisfy the criteria for the discretionary power to waive debts on the basis of special circumstances. Consequently, the Tribunal affirmed the SSAT's decision, confirming the overpayment, the existence of a legally recoverable debt of $32,521.11, and the inability to waive or write off this debt.