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

This matter concerned an appeal by Mr Cambridge against a decision by the Secretary of the Department of Social Services to raise a Newstart Allowance debt. Mr Cambridge had applied for and been granted Newstart Allowance from 5 August 2015. During the period from 5 August 2015 to 26 April 2016, Mr Cambridge received correspondence notifying him of his obligation to report any changes in his income. Subsequently, the Department received information from the Australian Tax Office indicating a discrepancy between Mr Cambridge's reported income and his actual earnings. This led to the raising of a Newstart Allowance debt, which was subsequently recalculated on several occasions.

The primary legal issues before the Tribunal were whether Mr Cambridge had failed to declare his income correctly, whether a Newstart Allowance debt had arisen as a consequence, and if so, the amount of that debt. The Tribunal was also required to consider whether any special circumstances existed that might affect the recovery of the debt. Welfare fraud was not a live issue in these proceedings.

The Tribunal reasoned that a debt to the Commonwealth may arise if a person entitled to Newstart Allowance earns income from employment but does not correctly report that income, as per section 1068 of the Social Security Act 1991 (Cth). The Tribunal was satisfied that correspondence notifying Mr Cambridge of his reporting obligations had been sent and received. Based on payroll records provided by Vesco, the Tribunal found a discrepancy between Mr Cambridge's declared income and his actual earnings during the relevant period. The Tribunal accepted the final recalculated debt amount of $938.26 as accurate.

The Tribunal set aside the Reviewable Decision and substituted it with a decision that Mr Cambridge has a Newstart Allowance debt of $938.26.