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

The Administrative Appeals Tribunal (AAT) considered an application by an individual concerning an alleged overpayment of Youth Allowance. The dispute arose after the applicant underreported their earnings, leading Centrelink to issue a decision of overpayment. An authorised review officer affirmed this decision, and a subsequent application to the AAT resulted in the first division upholding the original decision. Centrelink then recalculated the debt and substituted its earlier decision, leading to a second review by the AAT's General Division. The central issue before the Tribunal was whether the applicant was indebted to the Commonwealth and, if so, whether any portion of that debt should be waived or written off.

The Tribunal was required to determine the applicant's indebtedness to the Commonwealth, specifically regarding an alleged overpayment of Youth Allowance totalling $7,178.54 for the period between 19 July 2013 and 25 October 2014. This determination involved assessing the applicant's gross income against the means-tested rate of Youth Allowance, as prescribed by the *Social Security Act 1991* (Cth). Furthermore, the Tribunal had to consider the "palliative provisions" of the Act, specifically whether the debt, or any part of it, should be waived or written off, taking into account any special circumstances.

In reaching its decision, the Tribunal considered the provisions of the *Social Security Act 1991* (Cth) and the *Social Security (Administration) Act 1999* (Cth). It acknowledged the complexity of the calculations and the material provided by both parties, including the applicant's submissions and Centrelink's statement of issues. The Tribunal found that the applicant was indeed indebted to the Commonwealth. However, it also considered factors such as the inconsistent receipt of payslips and mismanagement by the applicant's former employer. Applying section 1237AAD of the *Social Security Act 1991* (Cth), the Tribunal determined that while the debt was not capable of being written off entirely, 60% of the total debt of $7,178.54 was waivable due to the applicant's special circumstances.

Consequently, the Tribunal set aside the reviewable decision of 22 June 2020. The matter was remitted to the Secretary with a direction that 60% of the total debt be waived. Given that Centrelink had already recovered $6,978.12, the applicant was entitled to a substantial credit.