Underdown v Secretary, Department of Education, Employment and Workplace Relations
[2009] FCA 965
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2009-08-26
Before
McKerracher J
Source
Original judgment source is linked above.
Judgment (17 paragraphs)
INTRODUCTION 1 By an amended notice of appeal, the applicants appeal from the decision of the Administrative Appeals Tribunal (the AAT) on 27 August 2008. By that decision, the AAT concluded that the late Samantha Underdown was 'a member of a couple' with the second applicant, Mr Arturo Fazio (Mr Fazio) for the purposes of s 4(2)(b) of the Social Security Act 1991 (Cth) (SSA) in the period of 24 December 1999 to 23 January 2000 (the relevant period). 2 The financial consequence of that conclusion was that there had been an overpayment of benefits to Ms Samantha Underdown (Ms Underdown) (almost 10 years ago) of some $70.86. The apparent emotional impact on Mr Fazio of dealings with Centrelink appears to have been extremely significant. How such a financially insignificant matter escalated in the fashion it has over many years remains a mystery as well as a tragedy.
BACKGROUND 3 Centrelink is responsible for administering the SSA and the Social Security (Administration) Act 1999 (SSAA) on behalf of relevant policy departments. Those departments are determined by reference to the Commonwealth Government's Administrative Arrangement Orders (AAO). The relevant policy department in the present appeal is the Department of Education, Employment and Workplace Relations (the Department). 4 On 24 December 1999, Ms Underdown applied for and was granted a Newstart allowance. She was paid it from that date until January 2000 on the rate applicable to a single person. In late January 2000, her Newstart allowance was cancelled as she had secured fulltime employment. 5 Three years later, on 17 April 2003, a Centrelink officer decided that Ms Underdown had been living in a marriage‑like relationship with Mr Fazio (then known as Mr Arthur Heedes) since 7 June 1991. The Centrelink officer also decided that Ms Underdown had been overpaid $70.86 in Newstart allowance between 24 December 1999 and 22 January 2000 as she was paid at the single rate rather than the lower rate for a partnered person. 6 Ms Underdown requested a review of the decision. The decision was internally confirmed and Ms Underdown appealed to the Social Securities Appeals Tribunal (SSAT). The SSAT, on 31 May 2007, also affirmed the decisions and on 26 June 2007, Mr Fazio filed an application with the AAT for a review of Centrelink's decisions on behalf of Ms Underdown. Sadly, Ms Underdown passed away on 1 July 2007. 7 In the AAT, various preliminary events and hearings took place and on 8 February 2008, the AAT directed that Mr Fazio be joined as a party to the application for review and the matter be listed for a conference as early as possible. 8 Mr Fazio did not attend the hearing of the appeal. He informed the AAT by facsimile on the morning of the appeal that he was 'mentally unable' to do so. There were also two other facsimiles from him shortly prior to the hearing dates. The AAT nevertheless proceeded with the appeal noting that Mr Fazio had previously been given proper notice of the hearing, that he did not request an adjournment of the hearing and that it was 'implicit in his aforementioned facsimiles that he was thereby providing information and making submissions to the Tribunal which he wished the Tribunal to take into account for the purpose of making its decision following the hearing'. 9 The main point in this 'appeal' is the AAT's decision to proceed without hearing Mr Fazio orally. The AAT did have on the other hand, hundreds of pages of material from previous hearings, submissions and communications from Mr Fazio all in relation to the issue of whether or not, by reason of her relationship, Centrelink had overpaid Ms Underdown $70.86. 10 The AAT (on 27 August 2008) affirmed the decision of the SSAT of 31 May 2007. The AAT concluded that the longstanding duration of the relationship immediately prior to the relevant period, their residing together on a continuous basis immediately before, during and immediately after the relevant period, and the apparently high level of commitment, including the provision of substantial companionship and emotional support to each other over the relevant period, pointed to the existence of a marriage-like relationship between them from at least 1995 including for the whole of the relevant period. 11 The AAT formed the view that the relationship between Ms Underdown and Mr Fazio was a marriage-like relationship within the meaning of s 4(2)(b)(iii) SSA for the whole of the relevant period and that Ms Underdown was therefore a 'member of a couple' for the purposes of the SSA. Accordingly, the AAT concluded that Ms Underdown had received an overpayment of Newstart allowance in the relevant period in the amount of $70.86 and that sum was a debt due to the Commonwealth.