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

This matter concerned an appeal by Mr Murray against a decision by the Secretary of the Department of Social Services to cancel his carer payment and raise a debt for overpayment. Mr Murray had been receiving carer payment for 24 years as the full-time carer for his mother. In December 2017, he inherited a property valued at approximately $650,000 and $158,332.66 in cash. Centrelink subsequently cancelled his carer payment, finding that his assets exceeded the allowable limit. An internal review affirmed this decision, and Mr Murray sought review by the Administrative Appeals Tribunal (AAT).

The AAT was required to determine whether Mr Murray's carer payment was correctly cancelled, whether a debt was owed to the Commonwealth, and whether special circumstances existed to waive recovery of all or part of the debt. Key issues included whether the inherited property was Mr Murray's principal place of residence, whether he should be considered a non-homeowner for asset test purposes, and whether the debt was attributable to administrative error by Centrelink, given Mr Murray's assertions that he had provided all necessary information promptly. The Tribunal also considered whether a valid notice of debt had been issued.

The Tribunal found that Mr Murray's carer payment was correctly cancelled from 5 January 2018 due to his assets exceeding the allowable limit for a non-homeowner. However, it also determined that a significant portion of the debt was attributable to administrative errors made by Centrelink, including delays in processing information provided by Mr Murray. Applying section 1237AAD of the Social Security Act 1991, the Tribunal considered whether to waive the debt. It found that Mr Murray had not knowingly made false statements or representations, and that special circumstances, including Centrelink's administrative errors, made it desirable to waive recovery of part of the debt.

The Tribunal set aside the original decision and substituted its own. It ordered that the debt for the period 11 December 2017 to 20 December 2017 be waived due to special circumstances, and the debt for the period 5 January 2018 to 19 November 2018 be waived due to sole administrative error. The Tribunal's decision effectively substituted a waiver for the debt, acknowledging the applicant's compliance with his obligations and the department's errors.