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

This matter concerned a review of a decision by the Secretary of the Department of Social Services regarding an overpayment of carer payment. The applicant, Mr Khanji, did not dispute the existence of a debt or argue for its waiver or write-off. The dispute centred on the correct calculation of income, particularly that of Mr Khanji's partner, for the purposes of assessing the carer payment.

The Tribunal was required to determine how income from a family day care business should be characterised, specifically whether certain payments received by Mr Khanji from Modern Tradies Pty Ltd constituted wages or a loan repayment. Additionally, the Tribunal had to consider the proper characterisation of income received from Modern Air Conditioners Pty Ltd and whether any wages paid by the family day care business to its operators should be included in the income assessment. The Tribunal also needed to confirm the allowable business deductions for the family day care business.

The Tribunal reasoned that the gross income from the family day care business should be calculated using the figures from Mr Khanji’s amended tax returns for the relevant financial years. It found that the $14,650 received from Modern Tradies Pty Limited in the 2015 financial year was income, not a loan repayment, and that $13,400 received from Modern Air Conditioners Pty Ltd in the 2014 financial year was also income. Furthermore, the Tribunal determined that any wages paid to either Mr or Mrs Khanji by their family day care business were to be treated as income for the assessment of carer payment. The business deductions were to be those claimed in Mr Khanji’s amended income tax returns.

Consequently, the Tribunal set aside the reviewable decision and remitted the matter to the Department for recalculation of the carer payment overpayment in accordance with these findings.