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

This matter concerned an appeal by Mrs Dunford against a decision by the Secretary of the Department of Social Services regarding her Family Tax Benefit (FTB) entitlement for the 2013-2014 income year. The dispute arose because Mrs Dunford's partner, Mr Dunford, lodged his income tax return for the relevant period late, which impacted Mrs Dunford's eligibility for the full FTB entitlement and supplements. The case was heard by S Raymond SM.

The primary legal issue before the Tribunal was whether there were "special circumstances" that prevented Mr Dunford from lodging his 2013-2014 income tax return by 30 June 2015, the end of the first income year after the relevant income year. This determination was crucial for the application of section 32D of the Administration Act, which governs the reconciliation of FTB entitlements for couples where one partner is required to lodge a tax return.

The Tribunal considered the evidence regarding Mr Dunford's dealings with his accountant. Mr Dunford's tax affairs were complex due to his web and software development business, which involved international transactions. While Mr Dunford provided information to his accountant in March 2015 and received the completed returns for signature around 6 May 2015, he did not return them to the accountant until mid-May 2015. Crucially, Mr Dunford understood that payment of the accountant's invoice was required before the returns would be lodged, and unlike a previous occasion, this payment arrangement did not occur in advance. The Tribunal was not satisfied that these circumstances constituted "special circumstances" preventing the timely lodgement of Mr Dunford's return.

Consequently, the Tribunal set aside the decision under review. However, in substitution, the Tribunal affirmed the decision made by the authorised review officer, which in turn affirmed the delegate's decision that Mrs Dunford was not entitled to her full FTB entitlement, including the FTB supplement, for the 2013-2014 income year due to the late lodgement of her partner's tax return.