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

This matter concerned an appeal by an applicant, who suffers from chronic schizophrenia, against a decision of the Administrative Appeals Tribunal (AAT) regarding a debt to the Commonwealth arising from carer payments. The applicant had received carer payment and carer allowance when he was allegedly not entitled to them. The core dispute revolved around whether the applicant had a debt to the Commonwealth, and if so, whether that debt should be written off, waived due to special circumstances, or if it was solely attributable to administrative error. The case was heard by Emeritus Professor P A Fairall, Senior Member.

The legal issues before the Senior Member were whether the applicant had obtained the benefit of carer payments and carer allowance when he was not entitled to them, thereby creating a debt to the Commonwealth. Further, the Senior Member had to determine if the applicant had the capacity to repay any such debt, and if not, whether the debt should be written off. The Senior Member was also required to consider whether the debt was solely attributable to administrative error or if it should be waived due to special circumstances.

The Senior Member reasoned that the applicant's serious and long-standing mental illness, chronic schizophrenia, significantly impacted his capacity to manage his affairs, including his financial matters. Evidence was presented regarding his hospitalisations, his bankruptcy, and the assistance he received from a healthcare worker and his family members, including his son who assisted with his daily care and supervision. The Senior Member acknowledged the applicant's documented inability to manage his financial affairs. Ultimately, the Senior Member concluded that the debt should be written off, finding that the circumstances warranted such an outcome. The reviewable decision of the AAT dated 2 April 2020 was set aside and remitted to the Secretary with an order that the entire debt be written off.