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

The Administrative Appeals Tribunal considered the case of Mr. Tillman and the Secretary, Department of Social Services, concerning the Family Tax Benefit (FTB) and the School Kids Bonus. The dispute arose from an alleged overpayment of FTB and the subsequent creation of a debt against Mr. Tillman, stemming from whether a child was considered an FTB child in his care during the relevant period.

The primary legal issues before the Tribunal were whether the child in question qualified as an FTB child for Mr. Tillman under section 22 of the relevant Act, specifically concerning the requirements of being under 16, an Australian resident, and in the applicant's care and legal responsibility. The Tribunal also had to determine if Mr. Tillman's percentage of care for the child met the minimum threshold of 35% as stipulated by section 22(7) of the Act, and if any special circumstances existed to waive the debt incurred.

The Tribunal reasoned that for a child to be considered an FTB child, the applicant must have legal responsibility for the child's day-to-day care, welfare, and development, and their percentage of care must be at least 35%. Evidence presented indicated that Mr. Tillman himself advised Centrelink that the child ceased to be in his full-time care from 12 January 2015. While the child was in Mr. Tillman's sole care before 18 October 2014, during the relevant period, the child moved between several residences, including Ms. Phillips'. School records indicated the child's address was listed as Ms. Phillips' residence from 18 October 2014, and this was not changed until 30 January 2015. Despite Mr. Tillman's involvement in school meetings, the Tribunal found that the evidence did not establish that he maintained the required level of care and legal responsibility for the child to qualify for FTB and the School Kids Bonus during the period in question. The Tribunal also noted the absence of evidence supporting special circumstances to waive the debt.

Consequently, the Tribunal affirmed the decisions to cancel Mr. Tillman's FTB from 18 October 2014 and to raise debts totalling $2,885.30 for FTB overpayment and $421.00 for the School Kids Bonus payment. The Tribunal concluded that it was not appropriate for both Mr. Tillman and Ms. Phillips to receive the benefits in respect of the child's care.