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

This matter concerned an appeal by Ms Machelle Judd against decisions of the Social Services and Child Support Division of the Administrative Appeals Tribunal regarding debts owed to the Commonwealth arising from overpayments of Parenting Payment Single. The dispute centred on whether the Applicant had failed to report earnings, leading to a debt pursuant to section 1223 of the *Social Security Act 1991* (Cth), and whether an additional 10% penalty for understatement under section 1228B applied. The decision was made by Senior Member B. Pola of the Administrative Appeals Tribunal.

The primary legal issue before the Tribunal was to determine whether the Applicant had been overpaid Parenting Payment Single in excess of her entitlement for specific debt periods between August 2003 and March 2006. This involved assessing whether the Applicant had received appropriate notice of her obligation to inform the Agency of changes in her employment and income, and whether she had complied with these notification requirements. A further issue was the application of a 10% penalty to a recalculated debt.

The Tribunal found that the Applicant had been provided with appropriate notice pursuant to section 68(2) of the *Administration Act*, informing her of the importance of updating her income with the Agency. The Applicant acknowledged her awareness of the requirement to notify Centrelink of changes in her employment and income. The Tribunal concluded that the genesis of the Applicant's debts was her failure to accurately declare her income, despite being appropriately notified. While acknowledging changes in debt calculations over time, the Tribunal distinguished this from an error leading to an overpayment, which it found not to be the case.

Consequently, the Tribunal set aside the previous decisions and substituted its own. It determined that the Applicant had legally recoverable debts to the Commonwealth for specific periods, totalling $1,159.51, $1,554.95, and $2,074.91. The Tribunal directed the Respondent to recalculate the debt for a further period, applying a 10% penalty to this recalculated amount. It also ordered that any over-recovered amounts be refunded to the Applicant and stated that write-off or waiver of these debts on grounds of severe financial hardship, administrative error, or special circumstances was not warranted.