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

This matter concerned a review of decisions by the Department of Social Services regarding overpayments of Carer Payment and Family Tax Benefit (FTB) to the Applicant. The central dispute revolved around whether the Applicant had been overpaid these benefits due to failing to disclose her relationship with Mr Jayson Priest, and consequently, whether these overpayments constituted legally recoverable debts that the Applicant was required to repay, or if they should be waived or written off. The case was heard by Member S Barton.

The legal issues before the court were multifaceted. Firstly, the court was required to determine if the Applicant had received an overpayment of Carer Payment between 17 November 2016 and 10 October 2018, and if so, whether this constituted a legally recoverable debt. Secondly, the court had to consider whether the Applicant was required to repay this debt, or if it should be waived or written off. Thirdly, the court was tasked with determining if the Applicant had been overpaid FTB between 1 July 2018 and 5 September 2018, and if this also constituted a legally recoverable debt. Finally, the court had to decide whether this FTB overpayment should be repaid or waived.

The court's reasoning was grounded in the provisions of the *Social Security Act 1991* (Cth) and the *Social Security (Administration) Act 1999* (Cth) for Carer Payment, and the *A New Tax System (Family Assistance) Act 1999* (Cth) and its administration Act for FTB. The court noted that the Carer Payment rate is dependent on a recipient's relationship status, with a partnered rate being lower than a single rate, and that a couple's combined income is also considered. Under section 68(2) of the Administration Act, the Applicant was obligated to notify the Department of changes in her circumstances, including entering into a relationship. Section 100(1) of the Administration Act stipulated that failure to notify the Department of such a change would result in the payment being made at a reduced rate from the date of the change. Section 1223 of the Act establishes that an overpayment of a social security payment is a debt due to the Commonwealth. The court found that the Applicant had failed to adequately notify the Department of her relationship with Mr Priest, despite several communications from the Department and her own uploads of information indicating a relationship and cohabitation. The court also considered section 1236 of the Act, which outlines conditions under which a debt may be written off, such as being irrecoverable at law or the debtor having no capacity to repay. However, the court concluded that these conditions were not met in this instance.

The decision affirmed the Reviewable Decision of the Administrative Appeals Tribunal dated 6 February 2019. This indicates that the Applicant was found to have been overpaid both Carer Payment and FTB, that these amounts constituted legally recoverable debts, and that the Applicant was required to repay them, with no grounds for waiver or write-off being established.