[2021] AATA 10
General information, not legal advice.
Administrative Appeals Tribunal of Australia
2021-01-11
Chris Puplick AM
Original judgment source is linked above.
or any other person of reasonable mind, would be able to understand from these notices that Centrelink was not aware of her combined income for the purpose of calculating her carer payment, or that she was required to report her income separately for FTB and carer payment.[8]
1236 Secretary may write off debt
(1) Subject to subsection (1A), the Secretary may, on behalf of the Commonwealth, decide to write off a debt, for a stated period or otherwise.
(1A) The Secretary may decide to write off a debt under subsection (1) if, and only if:
(b) the debtor has no capacity to repay the debt; or
(c) the debtor's whereabouts are unknown after all reasonable efforts have been made to locate the debtor; or
(d) it is not cost effective for the Commonwealth to take action to recover the debt.
(1) Subject to subsection (1A), the Secretary must waive the right to recover the proportion of a debt that is attributable solely to an administrative error made by the Commonwealth if the debtor received in good faith the payment or payments that gave rise to that proportion of the debt.
Note: Subsection (1) does not allow waiver of a part of a debt that was caused partly by administrative error and partly by one or more other factors (such as error by the debtor).
(a) the debt is not raised within a period of 6 weeks from the first payment that caused the debt; or
(b) if the debt arose because a person has complied with a notification obligation, the debt is not raised within a period of 6 weeks from the end of the notification period;
Information used for calculating your regular payment
Combined Annual Income .............$5.94[13]
I am satisfied that the initial error in the calculation of Mr Jonauskas' Age Pension was attributable solely to the administrative error of DSS ... The debt continued to be solely attributable to the error of DSS until Mr Jonauskas came under an obligation to advise DSS that it was acting on incorrect information. He came under that obligation once he had received the letter of 22 July, 1997 containing the recipient notification notice requiring him to tell DSS if its statement of his income was correct and once the time for his responding had passed ... After that time, the debt was due in part to its own initial error and in part to Mr Jonauskas' omitting or failing to correct their error.[21]
The Secretary may waive the right to recover all or part of a debt if the Secretary is satisfied that:
(a) the debt did not result wholly or partly from the debtor or another person knowingly:
(i) making a false statement or a false representation; or
(ii) failing or omitting to comply with a provision of this Act, the Administration Act or the 1947 Act; and
(b) there are special circumstances (other than financial hardship alone) that make it desirable to waive; and
(c) it is more appropriate to waive than to write off the debt or part of the debt.
(a) something more than ordinary or usual[24]
(b) markedly different from the usual run of cases - not necessarily unique but having a particular quality of unusualness[25]
(c) attuned to the individual circumstances of each case[26]
(d) not so rigidly applied as to risk harsh or unreasonable outcomes[27]
(e) supportive of the overall integrity of the social security system and recognising the public interest in ensuring that public moneys are recovered where they can and should be.[28]
The evident purpose of s 1237AAD is to enable a flexible response to the wide range of situations which could give rise to hardship or unfairness in the event of a rigid application of a requirement for recovery of debt.[32]
The decision to apply special circumstances should take into account all of the person's circumstances, and would usually be based on a combination of factors. "Special" denotes something different from the usual or ordinary, but it is the circumstances that must be special, not the individual's experience of them. Circumstances might be special though they apply to more than one person or to a class of persons, provided they are not of universal application.
The first exception provides that the Secretary will be prevented from exercising the discretion in section 1237AAD where the debt arose either solely or partly because of deliberate fraud by the debtor or another person (see the second criterion above). That is, the discretion may be exercised where a debt arose wholly because of an innocent mistake.
...
Accordingly, the new special circumstances provision can only be used where the debt arose because of an innocent mistake by a social security recipient The rationale for this exception is that it is not considered appropriate to provide relief under section 1237AAD if a debtor has deliberately set out to defraud the Commonwealth.[34]
The responsibility for efficient and effective administration of departmental practice and policy must carry with it a responsibility for any error or mistake which is made by the departmental officers alone.[36]
... While the Tribunal finds that Mrs Brown contributed to the overpayment in terms of her failure to respond to Departmental notices, the Tribunal also determines that the overpayment arose because of the failure of the Department of Social Security in particular to follow its own procedures and to investigate information provided to it not only by Mrs Brown, but also by the Department of Veterans' Affairs. Accordingly, the Tribunal considers that the Departmental administrative error in this case is a special circumstance which should be taken into account in terms of the manner in which the debt arose.
...
The Tribunal further finds that there is a special circumstance in relation to the occurrence of this overpayment which relates to the fact that Mrs Brown was completing claim forms and reading correspondence from various Commonwealth agencies at a time of great distress and increased vulnerability. In these circumstances, it is likely that Mrs Brown was not fully aware or providing full concentration to the matters being presented to her in relation to her financial security ...
... The Tribunal determines that $10,000 of the outstanding debt should be waived to reflect the special circumstances of Mrs Brown's case including the Departmental administrative error, the circumstances of her recent bereavement and her inability to deal with the administrative requirements in her quest to secure her future financial position.[37]
The Tribunal is concerned at the significant Departmental error in this matter. Not only was the law not correctly applied, the Department's own policy, procedures and practices also were not applied.[39]
In all the circumstances and in the facts of this particular case, the Tribunal finds that there are special circumstances in this matter which arise as a result of Departmental administrative error. Mrs Nehma was given incorrect advice by the Department in relation to her mother's claim and subsequent receipt of Job Search Allowance. The Department also failed to apply section 517A of the Act. Further error occurred when the Department failed to apply its own policies and procedures in relation to review and statements of debt provided to assurers. Accordingly, the Tribunal finds that the debt owed by Mrs Nehma should be waived either as a whole or in part pursuant to section 1237AAD of the Act. The remaining issue for the Tribunal is the extent to which the debt should be waived.[40]
Whilst the applicant is not blameless, given the Tribunal's finding that she failed to notify and was provided with a basic degree of information in the letters she received...[41]
The Tribunal considers that the departmental error in this case is significant such that whilst not being solely responsible for the debt, it should be considered to be a special circumstance.[42]
... would require something to distinguish Mr Groth's case from others, to take it out of the usual or ordinary case ... It would of course follow that if one were to conclude that something unfair, unintended or unjust had occurred that there must be some feature out of the ordinary.[50]
Cassandra has presented as highly anxious and has become distressed at times during sessions. She has reported a complex family history and trauma background and ongoing symptoms of anxiety, depression, and panic attacks. Cassandra has indicated onset of anxiety in childhood and recent escalation of symptoms related to family stress. Cassandra's assessment results and presentation during sessions have been consistent with Dr Reyes Castillo's referral and diagnosis. It is my clinical opinion that Cassandra currently meets diagnostic criteria for Persistent Depressive Disorder and Generalised Anxiety Disorder. Assessment in relation to possible bipolar disorder diagnosis are currently ongoing. Cassandra's diagnosis will provide significant challenges when managing high levels of family and occupational stress.[51]
had been diagnosed with major depressive disorder, which would, in the Tribunal's view, have affected her capacity to fully understand the obligations required of her ...
The tribunal is satisfied that the combination of the state of health of Ms Balancio, together with her serious financial circumstances, make it appropriate to waive the debt in this case.[53]
a broad discretion to meet the great variety of circumstances which must occur, raising considerations of individual hardship, need, fairness, reasonableness, and whatever else may move an administrator, keeping in mind the scope and purpose of the Act, to make a decision one way or the other.[58]
Any failure to regard the seriousness of the consequences of the giving of wrong advice as not being a circumstance special to the person or persons who have suffered as a result of that advice would be cruel. Citizens are entitled to act upon the advice given to them by representatives of government through its departments and agencies. Citizens also are entitled to have confidence in the advice that they are given by persons in authority and who represent government departments and agencies. Citizens should be entitled to expect nothing less.[62]
CONCLUSION RE SPECIAL CIRCUMSTANCES
(a) the debt for the period 13 September 2013 to 9 October 2013 is waived in its entirety pursuant to section 1237A of the Act; and
(b) the debt for the period 10 October 2013 to 5 October 2018 is waived in its entirety pursuant to section 1237AAD of the Act.
I certify that the preceding 95 (ninety-five) paragraphs are a true copy of the reasons for the decision herein of Chris Puplick AM, Senior Member
................................[sgd]................................
[1] Details of the correspondence are set out in the Applicant's statement of facts, issues and contentions dated 16 June 2020 (Applicant's SFIC) at [3]. See also section 37 documents (T documents) at 239.
[4] Applicant's SFIC at [5.7]. See Secretary, Department of Education, Employment, Training and Youth Affairs v Prince [1997] FCA 1565.
[7] Respondent's statement dated 7 September 2020 at [17].
[9] Secretary, Department of Social Services and Tomlin (Social services second review) [2017] AATA 1810, [42].
[18] Secretary, Department of Families, Housing, Community Services and Indigenous Affairs and Walsh [2008] AATA 75; Secretary, Department of Employment and Workplace Relations and Taylor [2007] AATA 1377.
[19] Secretary, Department of Education, Employment and Workplace Relations and Brookes [2008] AATA 501; Fisher and Secretary, Department of Education, Employment and Workplace Relations [2008] AATA 410; Tabije and Secretary Department of Social Services [2014] AATA 778 (and the authorities cited therein at [64]); Secretary, Department of Social Services and Waqar (Social services second review) [2020] AATA 1493.
[21] Secretary, Department of Family and Community Services and Jonauskas [2001] AATA 72, [56].
[22] Gerhardt and Department Employment, Education and Training [1996] AATA 173, [36]; Ryde Municipal Council v Macquarie University [1978] HCA 58; (1978) 23 ALR 41, 50-51.
[23] Ward and Secretary, Department of Family and Community Services [2000] AATA 212, [47].
[24] Angelakos v Secretary, Department of Employment and Workplace Relations [2007] FCA 25; Jess v Scott [1986] FCA 365; (1986) 70 ALR 185, 193; Dranichnikov v Centrelink [2003] FCAFC 133, [66].
[25] Re Beadle and Director-General of Social Security (1984) 6 ALD 1, 3.
[26] Davy and Secretary, Department of Employment and Workplace Relations [2007] AATA 1114, [80].
[27] Secretary, Department of Social Security v Hales (1998) 82 FCR 154, 162.
[28] Skinner and Secretary, Department of Social Services (Social services second review) [2015] AATA 569, [48]; Davy and Secretary, Department of Employment and Workplace Relations [2007] AATA 1114, [80].
[29] Applicant's SFIC at [8.71]; Love and Secretary, Department of Social Services (Social services second review) [2016] AATA 8, [57].
[30] Skinner and Secretary, Department of Social Services (Social services second review) [2015] AATA 569, [43].
[31] Hogan and Secretary, Department of Employment, Education and Workplace Relations [2011] AATA 162, [82].
[32] Secretary, Department of Social Security v Hales (1998) 82 FCR 154, 162.
[33] Guides to Social Policy Law - Social Security Guide (Guide) at 6.7.3.40.
[34] Explanatory Memorandum, Social Security Legislation Amendment (Carers Pension and Other Measures) Bill 1995 (Cth) at 32.
[35] Re Gale and Secretary, Department of Employment, Education and Training (1996) 42 ALD 477, [44].
[36] Re Secretary, Department of Social Security and McAvoy (1996) 44 ALD 721, 730.
[37] Brown and Department of Family and Community Services [1999] AATA 113, [82], [85] and [87].
[38] Nehma and Department of Family and Community Services [1999] AATA 219, [74].
[40] Nehma and Department of Family and Community Services [1999] AATA 219, [75].
[41] Brittain and Secretary, Department of Family and Community Services [2000] AATA 161, [44].
[43] Transcript dated 27 November 2020 (Transcript) at 65 [40]-[46].
[44] Transcript at 7 [25] - 11 [7].
[45] The Respondent filed reports providing relevant information including a letter of Dr Chanka Nanayakkara dated 25 October 2018, letter of Dr Vanessa Cairns dated 18 June 2019, and psychological report by Dr Lee Sturgeon dated 14 January 2019.
[46] The Respondent gave evidence to the Tribunal regarding this matter which was unchallenged by the Applicant.
[47] The Respondent gave evidence to the Tribunal regarding this matter which was unchallenged by the Applicant.
[48] Letter of Dr Smita Gupta dated 4 September 2020.
[49] Letter of Ms Karen Watson dated 11 November 2020 (Watson letter); Transcript at 12 [31] - 13 [26] and 48 [10] - 49 [2].
[50] Groth v Secretary, Department of Social Security [1995] FCA 1708; (1995) 40 ALD 541, [545].
[52] Letter of Dr Alicia Reyes Castillo dated 2 September 2020.
[53] Balancio v Secretary, Department of Family and Community Services [2003] AATA 466; (2003) 74 ALD 204, 209-210.
[54] Secretary, Department of Social Security v Thompson [1994] FCA 1477; (1994) 36 ALD 563, 568.
[55] Dean and Department of Education, Science and Training [2005] AATA 586, [60].
[56] Perkich and Secretary, Department of Social Security (1997) 49 ALD 137, 151.
[57] Lind and Secretary, Department of Social Services [2014] AATA 680, [48].
[58] Riddell v Secretary, Department of Social Security [1993] FCA 261; (1993) 30 ALD 31, 38.
[59] Boscolo v Secretary, Department of Social Security [1999] FCA 106; (1999) 53 ALD 277, 281.
[60] Minister for Community Services and Health v Chee Keong Thoo [1988] FCA 54; (1988) 78 ALR 307, 324.
[61] Secretary, Department of Social Services v Hodgson [1992] FCA 338; (1992) 27 ALD 309, 318.
[62] Re Secretary, Department of Social Security and McAvoy (1996) 44 ALD 721, 729.
[63] Secretary, Department of Employment and Workplace Relations and Bilgin [2007] AATA 1167, [18]; Secretary, Department of Families, Housing, Community Services and Indigenous Affairs and Walsh [2008] AATA 75, [47].
[64] Applicant's SFIC at [8.69]-[8.101].
Angelakos v Secretary, Department of Employment and Workplace Relations [2007] FCA 25
Balancio v Secretary, Department of Family and Community Services [2003] AATA 466; (2003) 74 ALD 204
Boscolo v Secretary, Department of Social Security [1999] FCA 106; (1999) 53 ALD 277
Brittain and Secretary, Department of Family and Community Services [2000] AATA 161
Brown and Department of Family and Community Services [1999] AATA 113
Davy and Secretary, Department of Employment and Workplace Relations [2007] AATA 1114
Dean and Department of Education, Science and Training [2005] AATA 586
Dranichnikov v Centrelink [2003] FCAFC 133
Fisher and Secretary, Department of Education, Employment and Workplace Relations [2008] AATA 410
Gerhardt and Department Employment, Education and Training [1996] AATA 173
Groth v Secretary, Department of Social Security [1995] FCA 1708; (1995) 40 ALD 541
Hogan and Secretary, Department of Employment, Education and Workplace Relations [2011] AATA 162
Jess v Scott [1986] FCA 365; (1986) 70 ALR 185
Lind and Secretary, Department of Social Services [2014] AATA 680
Love and Secretary, Department of Social Services (Social services second review) [2016] AATA 8
Minister for Community Services and Health v Chee Keong Thoo [1988] FCA 54; (1988) 78 ALR 307
Nehma and Department of Family and Community Services [1999] AATA 219
Riddell v Secretary, Department of Social Security [1993] FCA 261; (1993) 30 ALD 31
Ryde Municipal Council v Macquarie University [1978] HCA 58; (1978) 23 ALR 41
Secretary, Department of Education, Employment and Workplace Relations and Brookes [2008] AATA 501
Secretary, Department of Education, Employment, Training and Youth Affairs v Prince [1997] FCA 1565
Secretary, Department of Employment and Workplace Relations and Bilgin [2007] AATA 1167
Secretary, Department of Employment and Workplace Relations and Taylor [2007] AATA 1377
Secretary, Department of Families, Housing, Community Services and Indigenous Affairs and Walsh [2008] AATA 75
Secretary, Department of Family and Community Services and Jonauskas [2001] AATA 72
Secretary, Department of Social Security v Thompson [1994] FCA 1477; (1994) 36 ALD 563
Secretary, Department of Social Services and Tomlin (Social services second review) [2017] AATA 1810
Secretary, Department of Social Services and Waqar (Social services second review) [2020] AATA 1493
Secretary, Department of Social Services v Hodgson [1992] FCA 338; (1992) 27 ALD 309
Skinner and Secretary, Department of Social Services (Social services second review) [2015] AATA 569
Tabije and Secretary Department of Social Services [2014] AATA 778
Ward and Secretary, Department of Family and Community Services [2000] AATA 212
(1986) 70 ALR 185
(1988) 78 ALR 307
(1978) 23 ALR 41
(1998) 82 FCR 154