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

This matter concerned an application by Ms Lym for the waiver of a debt owed to the Commonwealth, arising from an overpayment of Widow Allowance. The dispute centred on whether the debt should be waived or written off due to special circumstances, or if it was attributable solely to an error by Centrelink. The decision was made by Ms A E Burke AO, Member, of the Administrative Appeals Tribunal.

The legal issues before the Tribunal were whether the debt was caused solely by an error made by Centrelink, and if not, whether there were special circumstances that made it desirable to waive the debt. The Tribunal was required to consider section 1237AAD of the Social Security Act 1991, which outlines the conditions under which a debt may be waived, specifically requiring that the debt did not result from the debtor knowingly making a false statement or representation, and that special circumstances exist making waiver desirable.

The Tribunal considered evidence presented by both Ms Lym and the Department. Ms Lym provided extensive personal history, detailing her emigration to Australia, her professional career, her family life, and the circumstances leading to her claim for Widow Allowance. She stated that she had not declared an income stream from a superannuation fund when she lodged her claim in 2010. The debt arose because this undeclared income stream meant she had assets above the allowed limit for the allowance. The Tribunal found that Ms Lym's situation, while involving personal hardship, was not sufficiently unusual or uncommon to constitute "special circumstances" as contemplated by the Act.

Consequently, the Tribunal affirmed the decision under review, meaning the debt owed by Ms Lym to the Commonwealth was not waived or written off.