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

This matter concerned an appeal by Ms Shanhun (the Respondent) against a decision of the Department of Social Services (the Applicant) regarding her entitlement to Family Tax Benefit (FTB) supplements and top-up payments for the 2012-2013 income year. The core of the dispute was whether the Respondent had satisfied the FTB reconciliation conditions, specifically the requirement to lodge her tax return by 30 June 2014, or whether "special circumstances" prevented her from doing so. The Respondent's tax return for the relevant income year was lodged on 1 July 2014.

The legal issue before the Tribunal was whether the provisions of section 32C of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Administration Act) were applicable to Ms Shanhun, thereby allowing her to receive FTB supplements and top-ups despite the late lodgement of her tax return. This required determining if "special circumstances" existed that prevented her from lodging the return by the statutory deadline.

The Tribunal reasoned that the Administration Act provides for a further period for lodging a tax return only if the Secretary is satisfied that special circumstances prevented the individual from lodging it by the end of the first income year after the relevant income year. The Tribunal found no provision in the Act or the Administration Act that allowed for discretion when a tax agent failed to meet a statutory obligation on behalf of a taxpayer. The onus rests on the taxpayer to ensure that all statutory obligations required to claim a benefit are met. The Tribunal concluded that the failure of the Respondent's accountants did not constitute "special circumstances" that prevented her from lodging the return, and therefore, she was not entitled to the FTB supplements and top-ups. The Tribunal set aside the previous decision and affirmed the original decision that the Respondent was not entitled to the FTB supplements and top-ups for the 2012-2013 income year.