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

This matter concerned an application for Family Tax Benefit (FTB) Part A for the 2019-20 financial year. The applicant received an FTB lump sum payment and subsequent fortnightly payments. However, to receive a potential top-up payment, the applicant and their partner were required to lodge their tax returns by 30 June 2021. Despite multiple reminders, the applicant’s partner lodged her return on 2 July 2021, and the applicant lodged his on 23 August 2021. Consequently, the FTB top-up payment of $3,547.09 was deemed not payable. The applicant sought review of this decision before Mr S Evans, Member, of the Administrative Appeals Tribunal.

The primary legal issues before the Tribunal were whether the time for lodging the tax returns could be extended beyond the first income year following the relevant financial year, and if so, whether special circumstances existed that prevented the applicant or their partner from lodging their returns within the prescribed time. The applicant contended that the exceptional events of the COVID-19 pandemic and associated lockdowns created financial uncertainty, constituting special circumstances that warranted an extension. The applicant also pointed to correspondence from their tax agent indicating that the lodgement was consistent with an extended deadline provided by the Australian Taxation Office for individuals affected by lockdowns.

The Tribunal considered section 32D of the Family Assistance Administration Act, which outlines the conditions for extending the reconciliation time for FTB entitlements when a partner is required to lodge a tax return. This section allows for a further period if the Secretary is satisfied that special circumstances prevented the partner from lodging the return before the end of the first income year after the relevant income year, with the further period not extending beyond the end of the second income year after the relevant income year. The Tribunal noted that the applicant’s tax agent confirmed the applicant provided information in late April 2021 and further information was requested in June 2021, with the return lodged in August 2021. However, the Tribunal found that the applicant had not demonstrated that special circumstances prevented the lodgement within the required timeframe, nor that the lodgement was consistent with any ATO-granted extension applicable to their specific situation.

The reviewable decision of the Department of Social Services, which affirmed the non-payment of the FTB top-up, was affirmed by the Tribunal.