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

This matter concerned an application by McGrath for a lump sum payment of family tax benefit for a past period, which involved a late lodgement of her and her partner's taxation returns. The dispute centred on whether an extension of time should be granted for this lodgement, and if so, whether special circumstances prevented the lodgement by the due date. The decision was made by A Poljak SM.

The legal issues before the Court were whether the applicant and her partner satisfied the requirements of sections 32C and 32D of the *A New Tax System (Family Assistance) (Administration) Act 1999* (Cth) to receive the full family tax benefit entitlement based on their actual combined Adjusted Taxable Income. Specifically, the Court had to determine if special circumstances existed that prevented the lodgement of their income tax returns by the prescribed deadlines, and if an extension of time, if granted, would fall within the statutory limits.

The Court reasoned that sections 32C(3)(b) and 32D(1)(c) of the *FA Administration Act* allow for an extension of time for lodgement of tax returns due to special circumstances, provided that such an extension ends no later than the end of the second income year after the relevant income year. In this case, any granted extension would have had to conclude by 30 June 2021. The Court found that the law did not permit an exception for the applicant's case to allow for the payment of family tax benefit top-up for the 2018/2019 financial year.

Consequently, the decision under review was affirmed, meaning the applicant's claim for the lump sum payment for the past period was not granted.