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

This matter concerned an appeal by Ms Pearce against decisions of the Secretary of the Department of Social Services regarding the payment of Family Tax Benefit (FTB). Ms Pearce sought to have FTB top-up or supplement payments made for the 2016/2017, 2017/2018, and 2018/2019 financial years. The dispute arose because Ms Pearce lodged her income tax returns for these years on 19 July 2021, which was after the statutory deadlines. The decision was made by K Millar SM.

The primary legal issue before the court was whether Ms Pearce could be paid FTB top-up or supplement for the relevant financial years, given that her income tax returns were lodged outside the timeframes prescribed by the *A New Tax System (Family Assistance) (Administration) Act 1999* (the Act). Specifically, the court had to consider the provisions relating to FTB reconciliation and the conditions under which an extension for lodging tax returns could be granted.

The court considered sections 32A and 32C of the Act, which require individuals to satisfy FTB reconciliation provisions, including lodging income tax returns within a year after the end of the financial year. While section 31C(3)(b) allows for an extension in special circumstances, section 32C(4) imposes a strict limit, stipulating that any extension must conclude no later than the end of the second income year after the relevant income year. For the financial years in question, this meant the latest lodgement dates were 30 June 2019, 30 June 2020, and 30 June 2021, respectively. Ms Pearce's lodgement on 19 July 2021 fell outside these extended deadlines. Despite acknowledging Ms Pearce's evidence of family violence, mental ill health, and financial hardship, the court found that the legislation did not grant a discretion to extend the lodgement period beyond the two-year limit.

Consequently, the court affirmed the decisions under review. The court concluded that as Ms Pearce's tax returns were lodged after the statutory deadlines, and the legislation provided no further discretion to accommodate her circumstances, she could not be paid FTB top-up or supplement for the financial years in question.