Kidd and Commissioner of Taxation (Taxation)

This matter concerned an application for review of a decision by the Commissioner of Taxation (the Respondent) to refuse to grant the Applicant a release from a personal taxation liability of $5,644.29 for the income year ended 30 June 2018. The Applicant sought release from this debt on the grounds of financial hardship. The Tribunal was required to determine whether the Applicant would suffer serious hardship if required to pay the tax debt and, if so, whether the discretion to release the debt, in full or in part, should be exercised.

The Tribunal considered the Applicant's income and expenditure, noting that the figures provided had varied throughout the process. The Applicant's net fortnightly income was stated as $1,943.06, while his partner received fortnightly payments totalling $2,240.44 from Family Tax Benefit and foster care payments. The Tribunal accepted the Applicant's stated fortnightly family expenses of $2,472.50 as likely to remain stable. Despite acknowledging the Applicant's good character and lack of assets to satisfy the debt, the Tribunal was not satisfied that the Applicant would suffer serious hardship.

The Tribunal's reasoning was based on its calculation of the household's financial position, which indicated a fortnightly surplus of approximately $1,700 when considering the Applicant's income, his partner's payments, and the disclosed household expenses. The Tribunal concluded that this surplus would enable the Applicant to enter into a payment arrangement with the Respondent to repay the tax debt within a reasonable time, without compromising his ability to meet essential family needs. As the Tribunal was not satisfied that the Applicant had discharged the onus of proof to establish serious hardship, it was unnecessary to consider the exercise of discretion to release the debt. Accordingly, the decision under review was affirmed.