[2008] AATA 222
General information, not legal advice.
Administrative Appeals Tribunal of Australia
2008-03-20
Original judgment source is linked above.
DECISION AND REASONS FOR DECISION [2008] AATA 222
SECRETARY, DEPARTMENT OF EDUCATION, EMPLOYMENT AND WORKPLACE RELATIONS
The Tribunal remits the matter to the decision maker with a direction to find that the debt due by the applicant to the Commonwealth arising from the overpayment of $8,344.86 to the applicant for the period 5 April 2005 to 23 January 2006 is attributable solely to an administrative error made by the Commonwealth and was received in good faith by the applicant and should therefore be waived under s 1237A (1) of the Social Security Act 1991.
Social Security - overpayment of Austudy - whether due to sole administrative error
Re Donnelly and Secretary, Department of Family and Community Services (AAT 433, 2 May 2002)
Re Gerhardt and Department of Employment, Education and Training (AAT 10941, 17 May 1996)
McAuliffe v Secretary, Department of Social Security [1991] FCA 268; (1991) 13 AAR 462
Re McKnight and SDSS (1994) 83 SSR 1212
SDSS and Dossis [1990] AATA 282; (1990) 21 ALD 628
"...at no time did you [Ms Found] qualify for Austudy payments as you were not a full time student nor were you intending to enroll full time in 2006"; and
"...you did not qualify for any of the Austudy payments made to you over the period 5/04/2005 to 23/01/2006. This extends the period of the original debt and increases the amount of debt to $8,344.86".
"with the authorised review officer that 4 months was an unacceptably long time for Centrelink to action the information that Ms Found was a part-time student. However the Tribunal differs from the authorised review officer in that it does not agree that Ms Found' circumstances are special circumstances under the Act. Her circumstances, whilst difficult, are not uncommon or out of the ordinary. Therefore the Tribunal was not able to apply the waiver provisions under section 1237AAD of the Act and waive recovery of all or part the debt".
"1236.(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."
"The Centrelink letter dated 18 January 2006 was the first notification she received about the letter dated 10 September 2005.... .....[because] ....she moved from Sydney to Perth on 23 August 2005 and... went into Centrelink... ...in October 2005 to notify her change of address;
She was studying at home while she received the austudy payments... ...and did not think she was a part-time student because of the hours she was studying
Centrelink suggested that she go onto austudy. She was only going by what Centrelink told her. She had no idea how austudy worked...
There was nothing to say what her conditions were for full-time study. She was told 20 hours a week study was okay and that would cover her for austudy....
She went back to re-enrol in 2006 because she wanted to finish off her studies."
"The authorised review officer acknowledged that Centrelink did not adequately check Ms Found's enrolment until a data match;
Ms Found has not got the nominal hours up for a full-time student, but there are key incidents when Centrelink failed to do its job;
The Memorandum of Understanding between Centrelink and TAFE NSW (MOU) at item 7 refers to data collection on a monthly basis. Ms Found commenced her course on 7 April 2005 and in the period to 27 June 2005 three of these data collection dates had passed. Yet Centrelink did not check to see that Ms Found's enrolment was correct; When Centrelink reviewed Ms Found on 27 June 2005 she was not questioned about any of these rigid rules and about the hours for a full-time student.
Item 9 of the MOU refers to timeliness of submissions and that there should be early detection of any incorrect payments;
Item 8 of the MOU refers to the data format Centrelink is meant to do the things required by the MOU."
"There is nothing in section 289(1) [section1237A(1)] which indicates that any meaning should be given to "solely" other than its ordinary meaning. Applying those ordinary meanings to the sub-section mean that the Secretary must waive the right to recover the proportion of the debt that is attributable only to the Commonwealth's administrative error. The Secretary's duty to waive does not extend to those debts which are attributable to errors or other factors which are independent of the Commonwealth's administrative error. It makes no difference that those other errors or factors are minor."
"...It is not necessary, for the purposes of this subparagraph, that the relevant statement or representation be intentionally or deliberately untrue; it is sufficient that it be in fact untrue: McAuliffe v Secretary, Department of Social Security [1991] FCA 268; (1991) 13 AAR 462' (at 30).
....the applicant made false statements or false representations when she responded "No" to the question "Have you enrolled, or will your enroll as a full-time student?"... ...The Tribunal further finds that these false statements or false representations were a substantial contributing cause of the payment to her of JSA and NA during the relevant period (at 31)."
"Request for further, or verification of, student enrolment, workload or attendance nformation is to be made in the first instance to the student".
"Centrelink's agreement with DEST requires that Austudy claims are processed accurately, with particular attention paid to verification of the customer's age, residence (where applicable) and enrolment with an educational institution or as an Australian Apprentice"
Note: "Staff cannot use any discretion when applying this law, policy or procedure unless otherwise stated"
EXTRACT FROM SOCIAL SECURITY (ADMINISTRATION) ACT 1999
Automatic cancellation - failure to provide statement under subsection 68(2)
(1) If:(a) a person who is receiving a social security payment is given a notice under subsection 68(2) requiring the person to give the Department a statement or a number of statements; and(b) the notice relates to the payment of the social security payment in respect of a period or a number of periods specified in the notice; and_(c) the person does not comply with the notice so far as it relates to a particular period;_subject to subsection (2), the social security payment is cancelled, by force of this section, on the first day in that period."
I certify that the 110 preceding paragraphs are a true copy of the reasons for the decision herein of Mr A Sweidan, Senior Member
Signed: ..............[sgd Mr J Lim]...................................
Solicitor for the Respondent Centrelink Legal Services Branch
McAuliffe
Secretary, Department of Social Security