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

This matter concerned an appeal by Mr Frajnd against a decision of the Administrative Appeals Tribunal (AAT) which affirmed the Secretary of the Department of Social Services' decision to refuse to waive a family tax benefit (FTB) debt. The dispute centred on whether the FTB debt should be waived due to administrative error or special circumstances.

The court was required to determine two primary legal issues: first, whether the FTB debt should be waived under section 97 of the *Administration Act* due to administrative error, and second, whether the FTB debt should be waived under section 101 of the *Administration Act* due to special circumstances.

Regarding section 97, the court found that the Tribunal had determined Mr Frajnd would not suffer severe financial hardship if the debt were not waived, which is a prerequisite for waiver under that section. Consequently, section 97 did not apply. On the issue of special circumstances under section 101, the court noted that "special circumstances" are those that differ from the usual or ordinary, and can encompass a constellation of factors beyond financial hardship alone, provided the debt did not arise from the debtor knowingly making false statements or failing to comply with the law. The court affirmed the Tribunal's decision, implying that no grounds for waiver under either section were established.