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

The Administrative Appeals Tribunal (AAT) considered a dispute concerning eligibility for Parenting Payment Single (PPS) between separated parents who shared care of their child. The applicant sought to have the decision under review set aside, arguing for an alternative year basis for receiving the payment if both parents were deemed to be in similar circumstances.

The primary legal issue before the Tribunal was to determine which of the two parents should be considered the principal carer of the child for the purposes of receiving PPS, given that only one parent can be eligible. This determination required the Tribunal to assess various factors beyond a simple comparison of income and assets, focusing on the financial capacity of each parent to meet the child's needs.

The Tribunal reasoned that in situations of shared care, the determination of the principal carer must consider which parent is most in need of a favourable determination, relating to their financial capacity to provide for the child's direct and indirect costs. The Tribunal noted significant discrepancies between the disclosed income and expenses of both parties, suggesting potential undeclared cash income from their businesses. While the applicant provided more detail regarding his financial situation and the factors for determining principal carer status, the Tribunal found that neither party presented a clear picture of their true financial circumstances. The other party was found to be evasive in her responses regarding her financial situation and work capacity.

Ultimately, the Tribunal affirmed the decision under review. It noted that the applicant's submission regarding an alternative year basis for payment was not a matter for the Tribunal to consider, but that the applicant could test his eligibility at any time.