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

This matter concerned an appeal by ZFDQ against a decision of the Secretary, Department of Social Services, relating to family tax benefit (FTB) entitlements. The dispute arose from a departure from an existing care arrangement for children, and whether the party experiencing reduced care had taken reasonable steps to ensure compliance with that arrangement for the purposes of FTB entitlement. The case was heard by Dr L Bygrave, Member.

The Tribunal was required to determine three key issues: first, whether a care arrangement existed prior to 16 August 2020 and, if so, its terms; second, whether there had been a departure from that arrangement; and third, whether the individual who had experienced a reduction in care was taking reasonable action to ensure compliance with the existing care arrangement. The Tribunal found that the final parenting orders made on 18 March 2020 constituted the care arrangement, with one party having 68% care and the other 32% care of the children.

The Tribunal determined that while there had been a departure from this care arrangement, the party with reduced care had not taken reasonable action to ensure compliance. The Family Assistance Guide outlines that reasonable action could include negotiating with the other party, attending dispute resolution services, seeking legal advice, filing court applications, or notifying the police. Simply complaining about the loss of care to Centrelink was not considered sufficient. As a result, the Tribunal found that an interim period for FTB entitlement did not apply.

Consequently, the Tribunal set aside the decision under review and substituted a new decision finding that QJBZ was not entitled to receive family tax benefit for the period between 16 August 2020 and 3 February 2021. The Tribunal affirmed that the decision by Services Australia to cancel the payment of family tax benefit to QJBZ from 16 August 2020 was correct.