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

The Administrative Appeals Tribunal considered the case of Ms Skipworth and the Secretary, Department of Social Services, concerning an overpayment of Family Tax Benefit (FTB). Ms Skipworth had received FTB for her son and two other children during the 2012/13, 2013/14, and 2014/15 income years. Her FTB rate was calculated based on her taxable income, which included income from a child support assessment for her son. Following an amendment to her ex-partner's child support liability for those years, Centrelink reconciled Ms Skipworth's FTB entitlement and determined she had been overpaid a total of $12,907.77 across the three income years.

The primary legal issue before the Tribunal was whether the Secretary had the discretion to waive all or part of this debt under section 101 of the *Administration Act*. This section requires the Secretary to be satisfied that the debt did not result from the debtor knowingly making a false statement or failing to comply with family assistance law, and that special circumstances (beyond mere financial hardship) exist which make it desirable to waive the debt, and that waiving is more appropriate than writing off the debt. Ms Skipworth argued that the debt was unfair, unexpected, and not her fault, attributing it to the failure of government agencies to ensure timely tax returns and child support payments from her ex-partner. She also expressed doubt about her ability to collect the outstanding child support.

The Tribunal considered Ms Skipworth's explanation for agreeing to a private child support arrangement with her ex-partner, which she stated was to maintain an amicable relationship and avoid him leaving the country and ceasing contact with their son. While she estimated significant arrears were owed, the Child Support Agency indicated it could not assist in seeking arrears for a child over 18, and its pursuit of arrears would have been limited to three months. The Tribunal found that Ms Skipworth had not satisfied the conditions of section 101 of the *Administration Act*. Specifically, it was not satisfied that there were special circumstances that made it desirable to waive the debt, nor that waiving was more appropriate than writing off the debt.

Consequently, the Tribunal affirmed the decision under review and was unable to waive all or part of the debt owed to Centrelink.