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

This matter concerned an appeal by the Secretary, Department of Social Services, to the Administrative Appeals Tribunal (AAT) concerning a decision made by AAT Tier 1. The dispute centred on whether Mrs Lewis, the claimant of Family Tax Benefit (FTB) for the 2015/2016 financial year, had complied with the reconciliation requirements of the *A New Tax System (Family Assistance) (Administration) Act 1999* (Cth). The core of the dispute involved the timing of the lodgement of Mrs Lewis's husband's, Mr Lewis's, income tax return.

The AAT was required to determine two primary issues: first, whether Mr Lewis lodged his income tax return by 30 June 2017, and second, if he did not, whether special circumstances prevented its lodgement by that date. If special circumstances were found, the Tribunal had the discretion to extend the reconciliation period by up to 12 months. The Tribunal heard evidence from Mr Lewis, his accountant Mr Robinson from H & R Block, and an Australian Taxation Office representative, Ms Drummond.

The Tribunal considered conflicting information regarding the lodgement date of Mr Lewis's tax return. While an initial validation report suggested lodgement on 30 June 2017, evidence from H & R Block indicated the return was lodged on 4 July 2017, supported by a transmission report. The Tribunal found Mr Lewis to be a credible witness. Crucially, the Tribunal determined that difficulties contacting Centrelink did not constitute special circumstances, nor did the delay by the accountant in lodging the return. The Tribunal concluded that Mr Lewis did not lodge his tax return by 30 June 2017 and that no special circumstances existed to permit an extension.

Consequently, the Tribunal set aside the AAT Tier 1 decision and substituted its own decision. The AAT found that Mrs Lewis had not met the reconciliation requirements for the 2015/2016 financial year due to the late lodgement of her husband's tax return and the absence of special circumstances.