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

This matter concerned an application by Shamsad Khadem for review of a decision by the Secretary of the Department of Social Services. Mrs Khadem had been in receipt of Family Tax Benefit (FTB) until her payments ceased due to an overestimation of her income. Following reconciliation, she was found to be entitled to a FTB top-up payment for the 2018/2019 financial year. However, this payment was deemed not to be payable because she and her husband had lodged their income tax returns (ITRs) late, after the requisite deadline of 30 June 2020. Mrs Khadem contended that special circumstances prevented the timely lodgement of the ITRs. The Administrative Appeals Tribunal (AAT) was required to determine whether such special circumstances existed.

The Tribunal considered the legal issue of whether Mrs Khadem and her husband faced special circumstances that prevented them from lodging their ITRs before the due date of 30 June 2020. This involved assessing the impact of a series of personal and professional difficulties experienced by the couple during the relevant period. The Tribunal also considered the applicant's understanding of the interaction between the Australian Taxation Office (ATO) and the Department of Social Services regarding extensions for ITR lodgement and the notification requirements for FTB recipients.

The Tribunal acknowledged the significant personal hardships Mrs Khadem and her husband endured, including the recent deaths of both their fathers, their son's severe illness, family members contracting COVID-19, and significant job losses for both individuals. Despite these challenges, the Tribunal found that there was no documentary evidence that an extension of time to lodge the ITRs was granted by the ATO, nor was there evidence of the duration of any such extension. Furthermore, the Tribunal noted that Mrs Khadem had been advised by the Department on 24 March 2020 that lodging her ITRs by 30 June 2020 was a requirement to receive her full FTB entitlement and to avoid a debt. The Tribunal concluded that the applicant's assumption that an ATO extension would automatically apply to the Department's requirements was erroneous and that the decision not to make the FTB top-up payments was correct.

The decision of the AAT dated 21 April 2021 was affirmed.