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

This matter concerned an appeal by Mr Khan against a decision of the Administrative Appeals Tribunal (AAT) which affirmed a decision by the Review Officer to recover a Newstart Allowance debt of $27,917.52 owed to the Commonwealth. Mr Khan sought to have the debt written off or waived.

The court was required to determine three legal issues: first, whether the debt should be written off under section 1236(1A) of the *Social Security Act 1991* (SSA); second, whether the debt must be waived due to sole administrative error by Centrelink under section 1237A(1) of the SSA; and third, whether the debt should be waived due to "special circumstances" under section 1237AAD of the SSA.

The court found that the debt could not be written off under section 1236(1A) as it was not irrecoverable at law, Mr Khan had the capacity to repay the debt through fortnightly withholdings, his whereabouts were known, and recovery was cost-effective. Furthermore, the court determined that the debt was not solely attributable to administrative error by Centrelink, as Mr Khan had failed to advise the Department of his correct income, and he had been regularly informed of his reporting obligations. Finally, the court held that the "special circumstances" provisions were not enlivened, as the AAT was not satisfied on the available evidence that Mr Khan's failure to report his income was the result of a medical condition, noting that he was able to engage with the reporting system and paid employment.