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

This matter concerned an application by Ms Austin for review of a decision by the Administrative Appeals Tribunal (AAT) affirming a decision to raise and recover a debt of $14,697.19 for ABSTUDY and $2,300 for the ABSTUDY Coronavirus Supplement. The core dispute revolved around whether these amounts constituted a debt to the Commonwealth and, if so, whether the recovery of all or part of the debt should be waived or written off.

The legal issues before the Tribunal were twofold: first, to determine the existence and quantum of the alleged ABSTUDY and Coronavirus Supplement debts; and second, if debts were found to exist, to consider whether the recovery of these debts should be waived or written off, either in whole or in part. This second limb required consideration of whether the debt was attributable to the sole administrative error of the Commonwealth or if special circumstances existed that made it desirable to waive the debt.

The Tribunal considered evidence including medical reports and correspondence from Ms Austin. It was noted that Ms Austin had experienced significant distress due to the debt recovery process, having also been a victim of the unlawful Robo-debt scheme. Furthermore, Ms Austin presented evidence of considerable hardship, including physical and mental health issues stemming from a fall and her inability to secure employment in her field of study, which had led to the accrual of the debts. The Tribunal found that the debt was attributable to the sole administrative error of the Commonwealth and that special circumstances existed, making it desirable to waive the debt.

Consequently, the Reviewable Decision was set aside and substituted with a decision to waive the recovery of the entire debt.