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

This matter concerned an appeal by Mr McIntyre against a decision of the Secretary of the Department of Social Services regarding a debt raised for Newstart allowance. Mr McIntyre had been receiving the allowance as a single person, but following his marriage in October 2012, his wife's income meant his entitlement was reduced to nil. The Department raised a debt of $66,974.59, alleging Mr McIntyre had failed to advise them of his change in marital status and his wife's income. The Tribunal was asked to consider whether all or part of this debt could be written off or waived due to special circumstances.

The legal issues before the Tribunal were whether Mr McIntyre had adequately notified the Department of his change in circumstances, and if not, whether there were special circumstances warranting the waiver or write-off of the debt. The Tribunal was required to determine the extent of Mr McIntyre's understanding of his reporting obligations, particularly in light of his admitted difficulties with reading and his assertion that he had informed the Department of his marriage. The Tribunal also had to consider the evidence regarding his wife's income and the period over which the debt accrued.

The Tribunal found that Mr McIntyre had provided proof of his marriage to the Department approximately four weeks after his wedding, accepting his evidence that he assumed an officer had made a copy of the marriage certificate. While acknowledging that Mr McIntyre had an obligation to report his wife's income and that he had not done so, the Tribunal considered his literacy challenges and his belief that the Department was aware of his marital status. The Tribunal also took into account Mr McIntyre's evidence of significant stress and psychological impact caused by the debt.

Consequently, the Tribunal set aside the previous decision and substituted a new decision. It found that Mr McIntyre had a debt of $10,000 due and payable to the Commonwealth, and that he was able to enter into a repayment plan with the Department. This decision effectively waived a significant portion of the original debt.