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

This matter concerned an appeal by the Applicant against a decision by the Secretary of the Department of Social Services to raise a Family Tax Benefit (FTB) debt of $6,709.21 for the period 1 July 2018 to 30 June 2019. The Applicant contended that the debt was raised unlawfully and that the methodology used was flawed. The Applicant argued that including a superannuation withdrawal made under hardship was unjust and would further impact her financially. She also submitted that a delay in processing her superannuation withdrawal request meant it fell into the subsequent financial year, thereby increasing her assessable income and creating the debt. Furthermore, the Applicant argued that the debt arising from child support payments was based on a standard assessment process that did not account for her actual circumstances, such as bankruptcy.

The Tribunal was required to determine whether the Applicant was overpaid FTB, whether a debt was due to the Commonwealth, and if so, whether the debt should be recovered, waived, or written off. Central to these issues was whether the Applicant had knowingly failed to comply with the requirements of family assistance law, or if there were special circumstances that warranted waiver or write-off of the debt. The Tribunal also considered the Applicant's obligation to notify the Department of changes to her circumstances, as stipulated by section 25 of the Family Assistance Administration Act, and the Secretary's general power to obtain information under section 154 of the same Act.

The Tribunal affirmed the decision to raise the FTB debt. It found that the Applicant had been sent numerous notices advising her of her obligation to notify Centrelink of any changes to her income. The Tribunal noted that the Applicant's taxable income, as confirmed by the Australian Taxation Office, was $83,839, and her net rental investment loss was $25,598, resulting in an adjustable taxable income of $109,437 for the relevant period. This figure, combined with the child support annualised maintenance assessment, led to the reconciliation of her FTB entitlements and the subsequent debt. The Tribunal did not find sufficient grounds to waive or write off the debt, implicitly finding that the Applicant had not demonstrated special circumstances or that the debt arose solely from administrative error.