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

This matter concerned an appeal by Ms Kim McKeown against a decision of the Secretary, Department of Social Services, regarding the recovery of an overpayment of Family Tax Benefit (FTB). The dispute centred on whether the FTB debt owed by Ms McKeown to the Commonwealth was recoverable in full or in part, and whether it should be written off or waived due to financial hardship. The decision was made by Senior Member Belinda Pola of the Tribunal.

The legal issues before the Tribunal were whether the Applicant met the requirements for the debt to be written off or waived under sections 95, 97, or 101 of the *Administration Act*, or whether recovery of the debt would cause the Applicant severe financial hardship. Specifically, the Tribunal had to determine if the debt was irrecoverable at law, if the debtor had no capacity to repay, if it was not cost-effective to recover, or if recovery by specified means would result in severe financial hardship.

The Tribunal reasoned that while there are circumstances under the *Administration Act* where debts can be written off or waived, the Applicant did not meet the criteria. The Applicant had stated that the debt had already been recovered in full, meaning section 95(1) of the *Administration Act* was not satisfied as there was no outstanding debt to write off or delay recovery of. Furthermore, the Tribunal found that the Applicant had not demonstrated severe financial hardship, nor did they meet the requirements of sections 97 or 101. Consequently, the Tribunal concluded that the FTB debt was recoverable in full. The decision under review was affirmed.