CMGT and District Registrar, Administrative Appeals Tribunal

[2024] AATA 2777

CMGT and District Registrar, Administrative Appeals Tribunal [2024] AATA 2777 (6 August 2024)

Division:GENERAL DIVISION

File Number(s):      2024/0943

Re:CMGT

APPLICANT

District Registrar, Administrative Appeals TribunalAnd  

RESPONDENT

DECISION

Tribunal:Senior Member B J Illingworth

Date:6 August 2024

Place:Adelaide

The decision under review is affirmed.

...........................[sgnd]................................

Senior Member B J Illingworth

CATCHWORDS: FEES - Registry refused Application for reduction of fee – Application to review refusal – Applicant failed to comply with directions – Applicant failed to provide sufficient evidence – appropriate opportunity given for the Applicant provide full financial records – Applicant  failed to provide complete bank statement – Applicant failed to provide explanation in relation to an undisclosed bank account that he regularly receives money from – request for reduction refused – the decision under review is affirmed.

REASONS FOR DECISION

Senior Member B J Illingworth

6 August 2024

INTRODUCTION

1. This is an application dated 8 November 2023 to review a decision by the Registrar of the Administrative Appeals Tribunal (the Registrar) refusing the Applicant’s request for a fee reduction for the filing of an ‘Application for Second Review of Decision’, on the basis that the requirement to pay the full fee would cause him undue hardship.     

2. In the request for fee reduction the Applicant said:

   (a)he has fortnightly expenses of $2000, his assets are a car, household furniture and electrical goods totalling $43,000.00, and his liabilities are a loan, credit card and ATO debt totalling $200,000.00;

   (b)following separation from the mother of his two children and in June 2022 he closed his business; he suffered from depression and was unable to maintain employment and he had no income;

   (c)he was working with his psychologist and medical practitioner to address his health issues and restart his business, but he had not yet made a profit.

3. The Applicant provided to the Tribunal his ANZ bank statement for the period 16 December 2022 to 16 June 2023. The opening balance on 16 December 2022 was $2341.54, his deposits to 16 June 2023 totalled $89,759.90 and withdrawals totalled $91,801.44. The majority of the deposits were received from Ms MM who the Applicant said was his mother and which he said was a loan. The bank statement referred to other accounts into which money was transferred or from which money was received but details of those accounts were not provided.

4. In a Telephone Directions Hearing (TDH) on 22 March 2024, the Applicant was directed that by close of business Friday 24 April 2024 he provide to the Tribunal:

   (a)Copies of the Applicant’s income tax returns for the last 2 year;

   (b)an updated ANZ bank statement from 16 June 2023 to date together current bank statements of all bank accounts held by the Applicant;

   (c)evidence of the debts referred to in the application for fee reduction and in particular all loans, credit card and ATO debts;

   (d)medical evidence detailing the Applicant’s ongoing mental health conditions including mental health care plan, and any letters, communications or other documents from treating mental health care practitioners or medical practitioners.

   The application was adjourned for Telephone Hearing on 3 May 2024.

5. The Applicant said he would comply with the directions and asked the Tribunal deal with the matter expeditiously after doing so.

6. The Applicant failed to comply with the above directions. An email was sent to the Applicant on Monday 29 April 2024 reminding him of the listing of the Telephone Hearing, that he had not complied with the abovementioned Directions and unless the Tribunal heard from the Applicant the hearing would proceed on 3 May 2024.

7. The Applicant failed to contact the Tribunal prior to the hearing. On 3 May 2024, the Applicant said that he did send the material in accordance with the previous Direction shortly after the last TDH. He did not properly read the email dated 29 April 2024 from the Tribunal. He said he would resend the material to the Tribunal. The Hearing was adjourned to 17 May 2024. After the adjournment of the Hearing on 3 May 2024 a search was made of the Tribunal records. No record could be found of any communication from the Applicant complying with the Directions.

8. On 7 May 2024, the Applicant provided the following additional material:

   ·Australian Taxation Office Notice of assessment – year ended 30 June 2022 $45,148.00 CR;

   ·Australian Taxation Office Notice of assessment – year ended 30 June 2023 $6,890.00 CR

   ·Letter from Dr Katsaneris dated 18 May 2023 confirming he and a psychologist were treating the applicant for a mental health condition; that the applicant cannot sustain normal levels of employment due to the condition; and that he has to take care in the level of work he undertakes to avoid adverse health consequences;

   ·Copy loan agreement between the applicant and Ms MM his mother dated 15 December 2022 in the amount of $60,000.00 made available to the Applicant on and from 1 January 2023;

   ·Australian Taxation Office Tax account, copied from the applicants MyGov account evidencing a total overdue debt of $152,043.05;

   ·ANZ Frequent Flyer Platinum account – statement period September to October 2023 - due date 30 October 2023 – opening balance owing of $5241.96;

   ·ANZ Frequent Flyer Black account – statement period October to November 2023 – due date 14 December 2023 – opening balance owing $14,871.92.

9. At the resumed Telephone Hearing on 17 May 2024, the Tribunal referred the Applicant to his continued failure to comply with the previous directions and in particular the provisions of up-to-date bank statements of accounts held by the Applicant. The Tribunal explained the need for current statements to be provided, so that the application could be considered relevant to his current financial circumstances and not those in 2023. The Tribunal explained that if he provided all the requested material and the Tribunal could decide the matter in his favour on the material provided, it would do so, but would otherwise list the matter for further hearing and receive evidence from the Applicant. The Tribunal directed the Applicant on or before 31 May 2024 provide (i) a copy of his ANZ account statements from 16 Jun 2023 to date; and (ii) copies of up-to-date statements of any other account held by the applicant including but not limited to ANZ Frequent Flyer Platinum account and ANZ Frequent Flyer Black account.

10. On 23 May 2024 the Tribunal received from the applicant by email the following:

    ·a letter from the Applicant (i) attaching more bank statements; (ii) advised he will not send anything else and requested a decision; (iii) that the process was impacting on his mental health and his ability to work productively; (iv)  he will not take any more “hearing calls” from the Tribunal due to the impact on his anxiety; and (v) that because of his debts and lack of income he cannot afford the full fee to contest the AAT decision dated 20 September 2023;

    ·ANZ Access Advantage Account statement transaction details 16 June 2023 to 7 August 2023 and Interim statement for the same account for the period15 December 2023 to 20 May 2024.

11. I was unable to decide the matter based on the material provided. The Applicant was contacted and was told that the Tribunal still had some further questions, and was asked if he was prepared to engage further with the Tribunal.  He agreed to do so, and a further short telephone hearing was listed on 14 June 2024.

12. At the second Resumed Hearing on 14 June 2024, the Applicant advised he was currently working but made a loss. He worked for himself and had “1 job this year” but still had not earnt enough money to make a profit. He then said at the moment he made an income but no profit. He had received nothing from his mother since 2023. A credit of $10,000 in June 2023 into his ANZ bank account was a loan from his father.

13. However, his most recent bank statement showed the Applicant was receiving regular and modest transfer of funds from a previously undisclosed bank account ending in the digits 4811 into his account ending 3422. It appeared a transfer of funds from account 4811 would occur into his ANZ account and thereafter, on the same day, those funds were withdrawn at a Non-ANZ ATM.[1] When asked, the Applicant could not provide any evidence about that bank account and the transfer of funds into his ANZ account. I was concerned that the applicant had not complied with previous directions to produce up-to-date copies of all bank accounts. 

    [1] see ANZ Interim statement of Account 15 December 2023 – 20 May 2023.

14. I informed the Applicant that although I was prepared to accept much of his evidence about his financial circumstances, that I accepted he had mental health issues as confirmed by his medical practitioner, I required more information about the bank account from which the transfer of funds occurred.

15. On 14 June 2024, I directed that on or before Monday 1 July 2024 the Applicant must give to the Tribunal a copy of the statement of account ending 4811 for the period 1 July 2023 to date and a written statement about that bank account and the transfer of funds into his account ending 3422. He said he would do so.

16. The Applicant did not comply with the Direction. On 22 July 2024, the Applicant was sent an email noting his non-compliance and advising that if by Friday 26 July 2024 he did not comply with the Directions or apply for an extension of time within which to do so, the Tribunal would proceed to finalise his application. Nothing further was received from the Applicant.

17. I have considered the various debts referred to by the Applicant. I accept those debts are owed and agree they are significant. I accept the applicant has some mental health issues which I have taken into account, including in regards the Applicant’s non-compliance with Tribunal Directions. 

18. The applicant provided ANZ Access Advantage Statement for the periods 16 December  2022 – 16 June 2023. He then provided further statement for the period 16 June 2023 – 7 August 2023. He also provided an interim statement of account for the period 15 December 2023 –  20 May 2024. Hence no statement was provided for the period on or about 7 August 2023 –14 December 2023.

19. I note for the ANZ bank statements for the period 16 December 2022 to 16 June 2023, the majority of the deposits into the account were from Applicant’s mother totalling $74,553. For the period 16 June 2023 to 20 May 2024, the Applicant received a total of $11,068.19 from his mother, the last deposit being $5000.00 on 26 July 2023. On 29 June 2023, the Applicant received a sum of $10,000.00 which he said was from his father.

20. Looking further at the various ANZ bank transactions, I note that on 11 January 2023, the Applicant received a transfer of $20,000.00 from his mother to his ANZ account. On 20 January 2023, he transferred $16,000.00 from his ANZ account to account 4811. On 27 January 2023,  $3400.00 was transferred to the ANZ bank account from account ending 4811 and a deposit of  $7964.00 was transferred from ‘Cut once Cut-once’, which transactions are unexplained. On 9 March 2023, a further $1300.00 was transferred to the ANZ bank account from account 4811. Importantly the account ending 4811 was still a source for transfer of funds into the applicant’s bank account into 2024.

21. The fact that the Applicant could not provide any evidence about account 4811 and when given the opportunity to do so he failed to comply with the Tribunals Direction, is of concern.  That account has been in use for some time, and I would reasonably expect the Applicant to provide some information about that account and its purpose. I am also concerned that again the applicant has failed to comply with the Tribunals direction to produce evidence about all of his bank accounts and I am not satisfied about the credibility and reliability of the Applicants financial circumstances based on the evidence and in particular the incomplete bank statement provided to the Tribunal.

22. I have some sympathy for the Applicant given his current financial circumstances including his debts, and health issues. However, he has failed to comply with Directions of the Tribunal and most recently in relation to the Directions dated 14 June 2024 and the further extension of time offered to him. I have explained to the Applicant the reason why the financial information was required and that I needed to be satisfied that the payment of the filing fee would cause the Applicant undue hardship.

23. This matter has been before the Tribunal for a number of months as a consequence of the Applicant’s non-compliance with directions. He has been given ample time to provide information to the Tribunal but has failed to do so. Given the Applicant’s non-compliance with the Tribunal Directions and in particular his failure to provide complete banking records, I am not satisfied that the requirement to pay the full filing fee would cause the applicant  undue hardship.

    DECISION

24. The decision under review is affirmed.

I certify that the preceding twenty-four (24) paragraphs are a true copy of the reasons for the decision herein of Senior Member B J Illingworth

..................[sgnd]...............................

Associate

Dated: 6 August 2024

Date of hearing:	3,17 May and 14 June 2024
Representative for the Applicant:	Self-represented
Representative for the Respondent:	Not Applicable