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

This matter concerned an appeal by the Applicant against a decision of the Secretary, Department of Social Services, affirming a debt for overpayment of Family Tax Benefit (FTB) for the 2016/2017 financial year. The Administrative Appeals Tribunal was required to determine whether the Applicant had been paid more than her correct entitlement to FTB and, if so, whether the excess payments constituted a recoverable debt.

The Tribunal considered the provisions of the *Fa (Administration) Act 1999* (FA Act) and the *Fa (Administration) Act 1999* (FA Administration Act) concerning eligibility for and calculation of FTB. Specifically, the Tribunal examined section 21 and Schedule 1, clause 28 of the FA Act, which outline the requirements for FTB eligibility and the calculation of the Part B rate, noting that the Part B rate is nil if adjusted taxable income exceeds $100,000, unless certain pension or benefit conditions are met. The Tribunal also referred to section 71 of the FA Administration Act, which establishes that any FTB payment received in excess of entitlement constitutes a debt owed to the Commonwealth.

The Respondent contended that the Applicant's adjusted taxable income for the 2016/2017 financial year was $101,056, exceeding the $100,000 threshold for FTB Part B, and that neither the Applicant nor her partner were in receipt of any qualifying pensions or benefits. While the Tribunal acknowledged the Applicant's financial and personal hardships, it found that these circumstances were not sufficiently special or unusual to warrant the exercise of discretion under section 101 of the FA Administration Act to waive the debt. Consequently, the Tribunal concluded that the Applicant had been overpaid FTB, that the debt of $4,142.75 was correctly calculated and owed to the Commonwealth, and that the requirements for waiving the debt were not met. The decision under review was affirmed.