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

This matter concerned an application for Austudy by the Applicant, who claimed to be studying a Diploma of Early Childhood Education and Care on a full-time basis. The Secretary of the Department of Social Services (the Respondent) determined that the Applicant had been overpaid Austudy and owed a debt to the Commonwealth. The Applicant sought a review of these decisions.

The legal issues before the Senior Member were whether the Applicant had been overpaid Austudy, whether a debt was owed to the Commonwealth, and if so, whether that debt should be recovered. The Applicant's claim for Austudy was based on her assertion of full-time study, with an initial indication of 47 study hours per week, later clarified to 30-40 hours of home study and 10 hours online. The Respondent's decision to stop payments was primarily based on the Applicant being outside Australia at certain periods.

The Senior Member found that the Applicant was not a full-time student during the relevant period and was therefore not qualified to receive Austudy. Consequently, the Applicant owed a debt to the Commonwealth amounting to $23,844.27. However, the Senior Member set aside the Respondent's decision to recover the full debt immediately. Instead, the debt was to be written off until the Applicant returned to Australia, at which point her capacity to pay could be assessed and reasonable repayment arrangements made.