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

This matter concerned an appeal by Miss Centkowska against a decision of the Secretary of the Department of Social Services regarding an alleged overpayment of Parenting Payment (PP). The dispute centred on whether Miss Centkowska had been overpaid PP between 25 October 2013 and 1 January 2015, and if so, whether the debt should be recovered. The case was heard by A C Cotter SM.

The primary legal issues before the court were: (a) whether Miss Centkowska had been overpaid PP in the amount of $13,447.72 during the specified period; (b) if an overpayment occurred, whether this constituted a debt owed to the Commonwealth; and (c) if a debt was owed, whether it should be recovered.

The court determined that Miss Centkowska had indeed been overpaid PP by $13,447.72. This was because her rate of PP was calculated based on her and her partner's incomes, and she failed to notify the Department of an increase in her partner's income, as required by notices issued under section 68(2) of the *Social Security (Administration) Act 1999* (Cth). Consequently, her partner's income was not assessed, leading to an incorrect payment rate. The court found that this failure to disclose constituted a breach of the notification requirements under section 100(1) of the *Administration Act*, entitling the Secretary to retrospectively reduce the payment.

Ultimately, the court concluded that while a debt was owed to the Commonwealth, special circumstances justified waiving half of the debt. Accordingly, the decision under review was varied, with the right to recover $6,723.86 of the overpaid parenting payment being waived.