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

This matter concerned an application by the Secretary, Department of Social Services, for review of a decision regarding the Respondent's parenting payment. The Respondent had been granted parenting payment from November 2013. The Department issued the Respondent with notices pursuant to section 68(2) of the *Social Security (Administration) Act 1999* (Cth) detailing her reporting obligations, including the requirement to report changes in her partner's income if it exceeded $914 per fortnight. During the period in question, the Respondent's husband was employed and also made income estimates for Family Tax Benefit purposes, which indicated a significant income.

The Tribunal was required to determine whether the Respondent received more parenting payment than she was entitled to for the period between 13 June 2015 and 28 September 2018, whether any such overpayment constituted a debt to the Commonwealth, and if so, whether that debt was recoverable in full or in part. The calculation of the parenting payment rate for a member of a couple, as stipulated by section 503 of the *Social Security Act 1991* (Cth), involves considering the ordinary income of both individuals. Ordinary income is defined broadly under section 8(1) of the Act as income earned, derived, or received for a person's own use or benefit.

The Tribunal found that the Respondent's husband's employment income, as evidenced by tax returns and Family Tax Benefit income estimates, was not adequately reported. Under section 1223(1) of the Act, any overpayment received by a person constitutes a debt due to the Commonwealth, arising at the time the benefit of the payment was obtained. The obligation to report changes in circumstances, including earnings, rests with the payment recipient, as communicated through notices issued under section 68 of the *Social Security (Administration) Act 1999* (Cth). The Tribunal concluded that the Respondent's parenting payment debt could not be waived or written off under the relevant provisions of the Act.

Consequently, the Tribunal set aside the previous decision and substituted a new decision. It found that the Respondent had been overpaid $32,273.56 in parenting payment between 13 June 2015 and 28 September 2018, that this constituted a debt to the Commonwealth, and that the debt was recoverable in full.