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

This matter concerned an appeal by Mrs Bondzulic against a decision of the Secretary of the Department of Social Services regarding her Family Tax Benefit (FTB) entitlement for the 2013-2014 financial year. The dispute centred on whether the reconciliation period for lodging tax returns should be extended due to special circumstances. The case was heard by A C Cotter SM.

The primary legal issues before the court were whether "special circumstances" existed that prevented Mrs Bondzulic and her partner, Mr Leach, from lodging their tax returns within the prescribed reconciliation period, and if so, whether those circumstances actually prevented compliance. The court was required to consider the discretion vested in the Secretary to extend this period under sections 32C and 32D of the Administration Act, which typically required tax returns to be lodged by 30 June of the year following the relevant financial year.

The court reasoned that while Mrs Bondzulic and Mr Leach experienced significant personal difficulties, including Mr Leach's serious illness and the associated stress and financial costs, these circumstances did not ultimately prevent them from lodging their tax returns by the deadline. The court accepted that departmental letters regarding the lodgement requirement were likely received at their address. Despite the considerable challenges posed by Mr Leach's health and treatment, the court found that the evidence did not establish that these events *prevented* the lodgement of the tax returns. Consequently, the discretion to extend the reconciliation period could not be invoked.

As a result, the court affirmed the decision under review. Mrs Bondzulic was therefore not entitled to receive FTB supplements and top-up payments for the 2013-2014 financial year because the reconciliation conditions had not been satisfied.