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

This matter concerned an application by Ms Close seeking review of a decision by the Secretary, Department of Social Services, to raise a debt of $29,698.10 against her for overpayments of carer payment (CP). Ms Close did not dispute the calculation of the debt but contended that it should be waived or written off due to administrative error and special circumstances, including her financial hardship and health issues. The Administrative Appeals Tribunal (AAT) was required to determine whether the debt was properly raised and, if so, whether it should be waived or written off.

The Tribunal considered two primary legislative provisions. Firstly, section 1237A of the *Social Security Act 1991* (Cth) allows for the waiver of a debt if it is attributable solely to an administrative error by the Commonwealth and the debtor received the payment in good faith. Secondly, section 1236 of the Act provides a discretion to write off a debt if special circumstances exist, considering the debtor's capacity to repay. The Tribunal examined whether the overpayment arose solely from administrative error or if Ms Close's failure to declare increases in her partner's income and her declaration of annual income for Family Tax Benefit purposes contributed to the error.

The Tribunal found that the debt was properly raised against Ms Close due to overpayments of CP. It concluded that the debt was not attributable solely to administrative error by the Commonwealth, as Ms Close's failure to advise of income increases and her method of advising annual income for other benefits were contributing factors. Consequently, section 1237A did not apply to waive the debt. Furthermore, the Tribunal determined that special circumstances, as contemplated by section 1236, did not exist in Ms Close's case, and she was deemed to have the capacity to repay the debt under section 1236(1C). Accordingly, the Tribunal affirmed the decision under review, meaning the debt stands and must be repaid. The Tribunal did, however, suggest Ms Close consider applying to Centrelink to reduce the quantum of her fortnightly repayment instalments.