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

This case concerned Ms Cai, who was in receipt of carer payment and had accumulated a debt to the Commonwealth due to an overpayment. The dispute arose because Ms Cai failed to report a significant loan she provided to her son, which, when combined with other assets, exceeded the asset value limit for carer payment eligibility. The decision was made by Mr S Evans, a Member of the Tribunal.

The legal issues before the Tribunal were whether the loan Ms Cai provided to her son constituted a reportable asset, whether this resulted in an overpayment of carer payment, whether such an overpayment constituted a debt to the Commonwealth, and if so, whether the debt should be waived or written off due to administrative error or special circumstances. Ms Cai contended that she was advised by Centrelink staff that the loan would not affect her payment and that the debt was a result of administrative error.

The Tribunal considered Ms Cai's reporting obligations under the *Social Security Administration Act 1999* (Cth), which require recipients to notify Centrelink of changes in assets or financial circumstances within 14 days. Ms Cai had received notices detailing these obligations. While Ms Cai claimed she was informed by Centrelink staff that borrowing money would not affect her payments, the Tribunal found no evidence of sole administrative error. The Tribunal determined that the loan to her son was an asset that should have been reported, and as it was not, Ms Cai was ineligible for carer payment during the period in question.

Consequently, the Tribunal affirmed the decision under review, finding that Ms Cai was overpaid $46,230.15 in carer payment. This amount was determined to be a debt to the Commonwealth that was required to be repaid in full, as there were no grounds for waiver or write-off based on administrative error or special circumstances.