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

This matter concerned an appeal by the applicant, Mr Kristoffersen, against decisions made by the Secretary of the Department of Social Services regarding Family Tax Benefit (FTB) payments. The core of the dispute revolved around whether amounts paid to the applicant as FTB Part A Supplement were lawfully withheld as an offset against a debt arising from an overpayment of FTB Part B. The applicant had been in receipt of disability support pension and FTB for his child, while his wife received carer's payment, during the period in question.

The legal issues before the court were whether a debt for FTB Part B had arisen, and if so, whether it was appropriate to offset this debt against the FTB Part A Supplement payments due to the applicant. The applicant also contended that proper notification of any alleged debt had not been provided, and that the correct amount of FTB had been underpaid rather than overpaid.

The court considered the provisions of the *Fa Administration Act 1999* (Cth), specifically sections 71(2), 82, and 84A, which permit the offset of debts against entitlements. The court noted that the applicant had not presented submissions regarding exceptional or unforeseen circumstances that would warrant the refund of the offset due to financial hardship. Furthermore, the court acknowledged that a previous Federal Court decision had affirmed the Administrative Appeals Tribunal's decision regarding the calculation of entitlements, and that this decision was binding. The court found no evidence to suggest that the discretion to offset the debt under section 84A had been improperly exercised.

The court affirmed the decision of the Administrative Appeals Tribunal, dismissing the applicant's appeal. The court found that the offset of the FTB Part B debt against the FTB Part A Supplement was appropriately applied under the relevant legislation.