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

This matter concerned an appeal by Mrs Smith against a decision of the Secretary of the Department of Social Services regarding her Family Tax Benefit (FTB) entitlements. Mrs Smith had received FTB throughout the 2012/2013 income year, with the rate assessed based on an estimated combined adjusted taxable income of her and her husband. However, her husband's income was later increased by investment losses, leading to a revised higher combined income figure used for the FTB assessment. The dispute arose when Mrs Smith was required to lodge her husband's tax return by a specific date to receive her full FTB entitlements, and the question of whether special circumstances existed to extend this deadline was central to the case.

The primary legal issue before the court was whether special circumstances existed that would permit an extension of time for Mr Smith to lodge his income tax return for the 2012/2013 income year, thereby allowing Mrs Smith to receive her full FTB entitlements. This involved interpreting the provisions of the *Family Assistance Administration Act 1999* (Cth), particularly those relating to the lodgement of tax returns for FTB purposes and the circumstances under which the Secretary could allow a further period for lodgement. The court also considered the application of amendments to the relevant legislation made over time.

The court found that recent amendments to the legislation applied to Mrs Smith's situation. It was determined that the Secretary's decision to affirm the original decision was based on an interpretation of the legislative provisions that did not account for the specific circumstances. The court accepted evidence that Mrs Smith had suffered from a mental illness since February 2014, which significantly impacted her concentration, motivation, and ability to function properly, rendering her unable to assist her husband with tax returns during the relevant period. This evidence, along with her caregiving responsibilities, was considered by the Tribunal to constitute special circumstances.

The Tribunal set aside the Secretary's decision and remitted it for reconsideration, finding that special circumstances existed to extend the time for Mr Smith's tax return lodgement to 3 March 2015. This allowed for the assessment of Mrs Smith's FTB entitlements on a basis that took into account her circumstances.