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

This matter concerned an application by Ms Tukana to review a decision of the Administrative Appeals Tribunal, Social Services and Child Support Division, which had affirmed the Secretary's decision to offset Ms Tukana's family assistance entitlement against a debt owed to the Commonwealth. The debt arose from an overpayment of parenting payments.

The primary legal issue before the Tribunal was whether the Secretary had the power to offset Ms Tukana's family assistance entitlement against the debt owed to the Commonwealth under section 84A of the *Family Assistance Act 1999* (Cth), and if so, whether the discretion to do so had been exercised appropriately. Specifically, the Tribunal considered whether exceptional or unforeseen circumstances leading to severe financial hardship justified refraining from offsetting the debt.

The Tribunal reasoned that section 84A of the *Family Assistance Act* empowered the Secretary to offset family assistance entitlements against debts owed under the *Social Security Act 1991* (Cth), provided the person had an entitlement to family assistance and owed a debt. Both preconditions were met in Ms Tukana's case. The Tribunal then considered the Secretary's discretion, noting the Family Assistance Guide's policy regarding exceptional or unforeseen circumstances causing severe financial hardship. However, the Tribunal found no evidence presented by Ms Tukana to support a claim of exceptional or unforeseen circumstances, nor severe financial hardship. Ms Tukana's stated intentions for the funds (a holiday and computers) and her and her partner's combined fortnightly income indicated that severe financial hardship was not established.

Consequently, the Tribunal affirmed the Administrative Appeals Tribunal's decision. The Tribunal determined that the Secretary had the power to offset the amounts of $383.10 and $5,225.91 against the debt owed by Ms Tukana to the Commonwealth, and that there was no sound or reasonable basis to refrain from doing so. The full amounts were to be set off, reducing both the entitlement and the debt accordingly.