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

The Administrative Appeals Tribunal considered the case of Sarwar and the Secretary, Department of Social Services, concerning the withholding of Family Tax Benefit (FTB) payments for the 2018/2019 financial year. The applicant sought review of a decision that affirmed the original determination not to pay an FTB top-up, based on the applicant's failure to advise the Department that she was not required to lodge an income tax return by the stipulated deadline of 30 June 2020.

The primary legal issues before the Tribunal were whether the applicant had indeed informed the Department of her non-requirement to lodge an income tax return by the 30 June 2020 deadline, and if not, whether there were any special circumstances that prevented her from doing so. The parties agreed that the applicant was not required to lodge an income tax return for the relevant financial year. The applicant contended that she had notified the Department of this fact, alleging a system malfunction or administrative error by the Department for the lack of records. Conversely, the Department presented evidence that the applicant accessed the notification letter on 20 March 2020, but did not advise of her non-lodgement until 9 May 2021, and subsequently lodged her income tax return on 3 June 2021, both dates being after the required deadline.

The Tribunal found that the applicant had not provided the required notification to the Department by the 30 June 2020 deadline. Evidence from the Department indicated that no record of the applicant advising of her non-lodgement existed prior to this date, and that any online task completion would have provided a receipt and updated notifications within the applicant's Centrelink online account. Given this finding, and the applicant's confirmation that she was not claiming special circumstances, the Tribunal determined it did not need to consider the existence of such circumstances. The Tribunal applied section 32J of the A New Tax System (Family Assistance) (Administration) Act 1999 (Cth), which outlines the reconciliation time for individuals not required to lodge an income tax return, requiring notification to the Secretary by the end of the first income year after the relevant income year, or a further period allowed by the Secretary in special circumstances.

Ultimately, the Tribunal affirmed the reviewable decision. The applicant's failure to notify the Department of her non-requirement to lodge an income tax return by the statutory deadline meant she did not satisfy the conditions for receiving the full FTB entitlement for the 2018/2019 financial year, and therefore no FTB top-up or supplementary payments were payable.