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

This matter concerned an appeal by Ms. Chen against a decision of the Secretary of the Department of Social Services regarding an alleged overpayment of social security benefits. Ms. Chen had received a Disability Support Pension (DSP), Newstart Allowance (NSA), and Pensioner Education Supplement (PES) over various periods. The dispute centred on the validity and recoverability of substantial debts raised against her by the Department, which she argued should be waived due to special circumstances.

The Administrative Appeals Tribunal was required to determine whether Ms. Chen's circumstances constituted "special circumstances" that would justify the waiver of the debt owed to the Commonwealth. Specifically, the Tribunal had to consider the impact of a Departmental assurance given to Ms. Chen on 18 May 2010, which stated that her DSP details were correct following a data-matching exercise, on the debts raised for periods predating this assurance.

The Tribunal acknowledged Ms. Chen's significant mental health issues and difficulties in managing her affairs, but found that these did not, as a matter of law, amount to "special circumstances" warranting a complete waiver of the debt. However, the Tribunal expressed serious concern regarding the Department's 2010 assurance. It reasoned that customers are entitled to rely on such assurances from the Department, particularly after a review and data-matching exercise, and that this assurance should establish a baseline for future dealings. Consequently, the Tribunal set aside the decision under review and remitted the matter to the Secretary with a direction to reconsider the raising of any debts against Ms. Chen prior to 18 May 2010, in light of the reasons provided. The Tribunal also drew attention to the need for care in the debt recovery process, given the potential impact on Ms. Chen's mental health.