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

This matter concerned an appeal by Mr Parkes against a decision by the Secretary of the Department of Social Services regarding a debt raised against him. Mr Parkes contended that the debt arose due to administrative error by Centrelink, as he had provided information about his CSS pension to Centrelink officers on two occasions in November 2013. He argued that the debt should be written off due to this error and the financial hardship it would cause. The Department submitted that there was no record of Mr Parkes' second visit and that an onus was on him to follow up on why his age pension rate had not been adjusted.

The Administrative Appeals Tribunal was required to determine whether the debt raised against Mr Parkes was irrecoverable at law, whether it should be waived due to administrative error, or whether repayment would cause severe financial hardship. Specifically, the Tribunal had to consider the provisions of sections 1236 and 1237A of the relevant Act, which deal with the waiver of debts caused by administrative error and the circumstances under which a debt may be deemed irrecoverable or waived due to financial hardship.

The Tribunal found that Mr Parkes was a truthful witness and accepted his evidence that he had visited Centrelink on two occasions to report his CSS pension. It concluded that there appeared to have been an omission by the Department in not recording these visits and the accompanying documents. However, the Tribunal determined that the overpayment was not attributable *solely* to administrative error, as Mr Parkes also expected his age pension to change and did not actively monitor his payments or read Centrelink notices closely. Consequently, the mandatory requirement to waive the debt under section 1237A was not invoked. The Tribunal also found that, based on his combined annual income of approximately $32,036, Mr Parkes was not in severe financial hardship, although it acknowledged his significant expenses related to his late wife's illness and ongoing financial commitments.

The Tribunal concluded that section 1236 of the Act was not applicable as the debt was recoverable and Mr Parkes had the capacity to repay it. Section 1237A was also not applicable because the overpayment was not solely attributable to administrative error. Therefore, the Tribunal did not waive the debt.