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

This matter concerned an application for review of a decision by the Secretary of the Department of Social Services regarding an overpayment of Family Tax Benefit (FTB). The applicant had received FTB during the 2017-2018 and 2018-2019 financial years on the basis that she was single. However, she had entered into a relationship and was living with her partner from 7 April 2018. The applicant contended that any overpayment was due to an administrative error by the Department, not her own fault, and that she would suffer severe financial hardship if required to repay the debt. The Administrative Appeals Tribunal (AAT) considered the applicant's circumstances and submissions.

The Tribunal was required to determine whether the applicant had been paid more than her correct amount of FTB during the specified period, whether these excess payments constituted a debt to the Commonwealth, and if so, whether that debt was recoverable in full or in part. A key issue was whether the applicant's circumstances were sufficiently special or unusual to warrant waiving the debt under section 101 of the *Family Assistance Administration Act 1999* (Cth).

The Tribunal found that the applicant had indeed received more FTB than she was entitled to because her rate had been calculated without regard to her partner's income, as required by the legislation when an individual is part of a couple. While the applicant had notified the Department of her change in relationship status and provided her partner's details, the Tribunal noted that she had not provided her partner's income or ensured her record was updated correctly. The Tribunal acknowledged the applicant's stated difficulties and expressed empathy for her situation, but concluded that her circumstances did not meet the legislative threshold for waiving the debt. The applicant had not provided sufficient objective evidence to demonstrate that her situation was unusual, uncommon, or exceptional, nor had she established severe financial hardship.

Accordingly, the Tribunal affirmed the decision under review. It found that the applicant was paid more than her correct amount of FTB for both financial years, that these amounts constituted debts owed to the Commonwealth, and that the requirements for waiving these debts under sections 95, 97, and 101 of the *Family Assistance Administration Act 1999* were not met. Consequently, the FTB debts were deemed recoverable in full.