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

The Administrative Appeals Tribunal considered a dispute between HFHK and the Secretary of the Department of Social Services concerning a debt raised against HFHK for overpayment of Family Tax Benefit (FTB) and Child Care Benefit. It was common ground between the parties that the debt had been correctly calculated and was owed to the Commonwealth. The central issue was whether this debt should be waived or written off, in part or in full, under the provisions of the *A New Tax System (Family Assistance) (Administration) Act 1999* (the Administration Act).

The Tribunal was required to determine whether the circumstances of HFHK's case met the criteria for waiving the debt under section 97 of the Administration Act, or for writing off the debt under section 95. Specifically, the Tribunal had to consider if there were "special circumstances" that would make it desirable to waive the debt, or if the debt arose due to "maladministration" and if HFHK was experiencing severe financial hardship. HFHK contended that deficiencies between the computer systems of the Department and the Department of Veterans’ Affairs, coupled with the fact that Centrelink staff did not regularly deal with issues pertaining to War Widows Pensions and FTB payments, constituted maladministration and created special circumstances.

In its reasoning, the Tribunal referred to established legal principles regarding "special circumstances," noting that such circumstances require something to distinguish the case from the ordinary or usual case, without necessarily being exceptional. The Tribunal considered the applicant's submission that expecting an individual to repay a debt arising from maladministration, particularly when in low socio-economic circumstances, was unjust. However, the Tribunal ultimately found that the decision of the Authorised Review Officer (ARO) was correct.

The Tribunal affirmed the decision under review, meaning that the debt raised against HFHK was upheld and not waived or written off.