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

This matter concerned an application for review of a decision by the Secretary of the Department of Social Services regarding a Newstart Allowance debt. The applicant, Mr Petruschenko, had received Newstart Allowance on multiple occasions between December 2008 and December 2016. During these periods, he declared that he had no real estate interests other than his principal home. However, it was later determined that he held an undisclosed interest in a second property, leading to the creation of a debt of $81,901.57. Mr Petruschenko sought to have this debt written off or waived, citing financial hardship and special circumstances.

The Tribunal was required to determine whether a Newstart Debt of $81,901.57 had been correctly raised against Mr Petruschenko and, if so, whether all or part of this debt should be written off or waived. The central legal issues revolved around the interpretation and application of provisions within the Social Security (Administration) Act 1999 and the Social Security Act 1991 concerning the creation, writing off, and waiving of social security debts, particularly in light of claims of financial hardship and special circumstances.

The Tribunal affirmed the decision under review. It found that Mr Petruschenko had made repeated declarations that he had no real estate interests other than his principal home, despite holding an interest in a second property. This failure to declare the asset led to the creation of the debt under section 1223(1) of the Act. While Mr Petruschenko argued for the debt to be waived or written off due to financial hardship, the Tribunal noted that section 1237AAD of the Act requires special circumstances beyond mere financial hardship for a waiver, and that the debt did not result wholly or partly from administrative error. The Tribunal also found no evidence of prejudice against Mr Petruschenko.