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

This matter concerned a review by the Administrative Appeals Tribunal (AAT) of a decision by the Secretary of the Department of Social Services regarding the payment of Family Tax Benefit (FTB). The applicant, Ms Rees, had received FTB by instalments but failed to lodge her tax returns for the 2021-22 financial year by the end of the following financial year. The Secretary sought a second review after a first review by an authorised review officer and a subsequent review by the Tribunal had found that special circumstances applied.

The primary legal issue before the Tribunal was whether special circumstances existed that prevented Ms Rees from lodging her tax return by the required deadline, thereby impacting her eligibility for FTB top-ups and supplementary payments. The Tribunal was required to consider the meaning of "special circumstances" as interpreted in relevant case law, including decisions from the Federal Court, and determine if the circumstances presented by Ms Rees distinguished her case from the usual or ordinary situation, and if those circumstances, taken as a whole, prevented lodgement.

The Tribunal considered the evidence that Ms Rees had provided all necessary documentation to her accountant in April 2023, well before the 30 June 2023 deadline. While Ms Rees was aware of the deadline, she relied on her accountant's assurance that an extension had been obtained from the Australian Taxation Office. The Tribunal noted that Ms Rees's inability to lodge was due to her accountant's actions, not her own. Drawing on case law, particularly *Groth v Secretary, Department of Social Security* and *Ward v Commissioner of Taxation*, the Tribunal emphasised that "special circumstances" require something out of the ordinary and warned against an overly narrow interpretation, highlighting the importance of considering the entirety of the circumstances. Ultimately, the Tribunal found that while Ms Rees had provided her documents in a timely manner, the circumstances did not prevent her from lodging her tax return.

Consequently, the Tribunal set aside the previous decision and substituted a new decision. It determined that Ms Rees was not eligible for FTB top-ups and supplementary payments totalling $3,451.08 for the 2021-22 financial year due to the late lodgement of her tax returns.