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

This matter concerned an appeal by Mr Farrugia against a decision of the Administrative Appeals Tribunal (AAT) regarding the determination of care percentages for Family Tax Benefit purposes. The Secretary of the Department of Social Services was the respondent. The core of the dispute revolved around the proportion of care Mr Farrugia provided for his children, which directly impacts eligibility for and the amount of Family Tax Benefit.

The primary legal issue before the Federal Circuit and Family Court of Australia was whether the AAT had erred in its assessment of the care percentages. Specifically, the court was required to determine if the AAT had properly considered all the evidence presented, particularly in circumstances where there were no formal parenting orders in place and the evidence regarding shared care was contested.

The court found that the AAT had failed to adequately address the contested evidence concerning the actual care arrangements. It was held that the AAT had not given sufficient weight to Mr Farrugia's evidence and had not properly engaged with the principles governing the determination of care percentages in the absence of formal parenting orders. The court concluded that the AAT's decision was affected by an error of law, leading to the setting aside of the AAT's determination. The court then substituted its own decision, making a fresh determination of the care percentages.