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

The Administrative Appeals Tribunal (AAT) considered the case of Mrs Galvin and the Secretary, Department of Social Services, concerning her entitlement to Family Tax Benefit (FTB) supplements and top-ups for the 2013/2014 financial year. Mrs Galvin had lodged her tax return for that year on 23 July 2015, which was after the deadline of 30 June 2015. The Department's original decision was that she was not entitled to these additional payments due to the late lodgement.

The primary legal issue before the Tribunal was whether Mrs Galvin was prevented from lodging her tax return by the relevant deadline due to "special circumstances" as contemplated by section 32C of the *A New Tax System (Family Assistance) (Administration) Act 1999*. This section requires individuals to lodge their tax returns within the first income year after the relevant income year, unless the Secretary is satisfied that special circumstances prevented lodgement. The Tribunal also had to consider the two-part test for FTB supplements, which requires the claimant to have satisfied the FTB reconciliation conditions, including the timely lodgement of tax returns.

The Tribunal reasoned that while Mrs Galvin presented as an honest and forthright person, and acknowledged the distressing circumstances she faced, including the illness and death of her mother and her grandmother's sudden illness, these circumstances did not collectively amount to "special circumstances" that prevented her from lodging her tax return by the deadline. The Tribunal noted that the phrase "special circumstances" requires something that distinguishes a case from the ordinary or usual case, and that while a combination of circumstances could satisfy the test, the specific circumstances presented by Mrs Galvin, such as managing family matters and travel, were not sufficiently out of the ordinary to meet the legislative threshold. The Tribunal also noted that Mrs Galvin had received a letter from the Department in March 2015 reminding her of the lodgement deadline, and that her explanation for not prioritising this task, even amidst personal difficulties, did not meet the required standard.

Consequently, the Tribunal set aside the decision under review and, in substitution, affirmed the original decision of the Department. This meant that Mrs Galvin was not entitled to Family Tax Benefit supplements and top-ups for the 2013/2014 financial year.