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

The Administrative Appeals Tribunal considered an application by the Applicant for youth allowance at the independent rate, following a reduction in his payments due to updated parental income. The Applicant had been receiving youth allowance as a non-independent person until November 2016, when Centrelink reassessed his entitlement based on his mother and stepfather's income, resulting in a fortnightly reduction of approximately $250. The Applicant then sought to be classified as independent under the Social Security Act 1991, arguing it was unreasonable for him to live at home.

The Tribunal was required to determine whether the Applicant met the criteria for independence under section 1067A(9) of the Social Security Act 1991, specifically whether it was unreasonable for him to live at home due to extreme family breakdown or other similar exceptional circumstances. The Act outlines that a person is considered independent if they cannot live at their parents' home due to extreme family breakdown or similar exceptional circumstances, or if there is a serious risk to their physical or mental well-being, or if their parents are unable to provide suitable accommodation. Additionally, the applicant must not be receiving continuous support from a parent or guardian, nor continuous income support payments from the Commonwealth or a state.

The Tribunal noted that the Applicant did not rely on the grounds of parents being unable to provide accommodation or a serious risk to his well-being. The Respondent conceded that the Applicant met the requirements regarding not receiving parental support or other income support. The central issue was whether the Applicant could demonstrate "extreme family breakdown" as defined by the Act and relevant case law. Drawing on previous decisions, the Tribunal understood "extreme family breakdown" to mean circumstances where no reasonable adjustment of behaviour could mend the family situation. It was also noted that ongoing conflict with a parent, or a parent's refusal to allow the young person to return home, is generally insufficient on its own to constitute extreme family breakdown.

Ultimately, the Tribunal found that the Applicant had not satisfied the requirements of subsection 1067A(9) of the Act to be considered independent on the basis that it was unreasonable to live at home. Consequently, the decision under review was affirmed, meaning the Applicant would continue to receive youth allowance at the dependent rate.