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RFZX and Secretary, Department of Education, Employment and Workplace Relations and Anor [2010] AATA 35 (20 January 2010)
Last Updated: 20 January 2010
Administrative Appeals Tribunal
DECISION AND REASONS FOR DECISION [2010] AATA 35
ADMINISTRATIVE APPEALS TRIBUNAL )
) No 2009/0990
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GENERAL ADMINISTRATIVE DIVISION
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|
|
Re
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Applicant
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And
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SECRETARY, DEPARTMENT OF EDUCATION, EMPLOYMENT
AND WORKPLACE RELATIONS
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Respondent
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And
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SECRETARY, DEPARTMENT OF FAMILIES, HOUSING, COMMUNITY SERVICES AND
INDIGENOUS AFFAIRS
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Other Party
DECISION
Date 20 January 2010
Place Adelaide
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Decision
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The Tribunal affirms the decisions under
review.
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..............................................
R W
DUNNE
(Senior Member)
CATCHWORDS
SOCIAL SECURITY – pensions, benefits and
allowances – overpayment of Parenting Payment – overpayment of Sole
Parent
Pension – overpayment of Newstart Allowance – overpayment of
Family Tax Benefit – overpayment of Special Benefit
– whether member
of a couple – whether marriage-like relationship – circumstances of
the relationship – decisions
under review affirmed
Social
Security Act 1991 ss 4(2)(b), 4(3), 4(3A), 24(2), 249, 1068A, 1068B, 1223,
1236(1), 1236(1A), 1237A(1), 1237AAD
Social Security (Administration) Act
1999 ss 68(2), 80
A New Tax System (Family Assistance) Act 1999 s
3(1)
A New Tax System (Family Assistance) (Administration) Act 1999 ss 20C,
28, 71, 95(1) & (2), 97, 101
Staunton-Smith v Secretary, Department of
Social Security [1991] FCA 513; (1991) 25 ALD 27
Pelka v Secretary, Department of
Family and Community Services [2006] FCA 735; (2006) 151 FCR 546
R v Toohey; Ex Parte
Meneling Station Pty Ltd [1982] HCA 69; (1982) 158 CLR 327
Re Ford and Secretary,
Department of Family and Community Services [2003] AATA 7
Secretary,
Department of Education, Employment and Workplace Relations v Holmes [2008]
FCA 105
Re Tang and Director-General of Social Services (1981) 3 ALN
N83
Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298
Re Rodger and Secretary,
Department of Social Security (1991) 24 ALD 720
Re Harding and
Secretary, Department of Families, Community Services and Indigenous Affairs
[2007] AATA 1104
REASONS FOR DECISION
INTRODUCTION
- This
is an application by RFZX (“applicant”) for review of the decision
of the Social Security Appeals Tribunal (“SSAT”)
made on 15 January
2009. The SSAT affirmed the decisions of an Authorised Review Officer and the
respondent (“Centrelink”):
(a) to cancel the
applicant’s Parenting Payment on 28 August 2008;
(b) to raise and recover an overpayment of Parenting Payment of $14,924.31
for the period 2 April 1998 to 30 June 2001;
(c) to raise and recover and overpayment of Sole Parent Pension of
$17,934.00 for the period 18 April 1996 to 19 March 1998;
(d) to raise and recover an overpayment of Newstart Allowance of $4,966.20
for the period 1 July 1995 to 25 January 1996;
(e) to raise and recover an overpayment of Family Tax Benefit of $14,064.62
for the 2005/2006 financial year;
(f) to raise and recover an overpayment of Family Tax Benefit of $15,312.90
for the 2006/2007 financial year;
(g) to raise and recover an overpayment of Family Tax Benefit of $15,927.54
for the 2007/2008 financial year; and
(h) to raise and recover an overpayment of Special Benefit of $1,692.90 for
the period 26 January 1996 to 4 April 1996.
- The
decisions were affirmed because the SSAT found that RFZX and the person with
whom she was found to reside (“Mr B”)
had been living as members of
a couple and in a marriage-like relationship since at least 26 April 1993 to 28
August 2008.
- On
10 March 2009, RFZX applied to this Tribunal for review of the decisions of the
SSAT. At the hearing, she represented herself
and Ms Martine Welfare (from
Centrelink Legal Services and Procurement Branch) represented the respondent.
The Tribunal received
into evidence the T documents lodged pursuant to s 37 of
the Administrative Appeals Tribunal Act 1975 (“AAT Act”)
(Exhibit R1).
- Because
of the sensitivity of the matter, the Tribunal made an appropriate order under s
35(2) of the AAT Act restricting the publication
of evidence given before the
Tribunal and of matters contained in documents lodged with the
Tribunal.
ISSUES FOR THE TRIBUNAL
- The
issues for the Tribunal to determine are:
(a) Whether the applicant
was, for the purposes of the Social Security Act 1991
(“Act”), a “member of a couple” from 26 April
1993 to 28 August 2008.
(b) Whether Parenting Payment paid to the applicant was correctly cancelled
on 28 August 2008.
(c) Whether there were the overpayments to the applicant of the social
security benefits referred to in paragraph 1(b) to (h) above.
(d) If there were any overpayments, whether the overpayments were correctly
calculated and are debts due to the Commonwealth.
(e) Whether any or all of the overpayments, as debts due to the
Commonwealth, should be waived or written off.
LEGISLATION
- The
rate of Parenting Payment varies according to whether or not a person is a
member of the couple: see Part 3.6A of the Act. If
a person is not a member of
a couple, the person is entitled to Parenting Payment (Single) calculated in
accordance with s 1068A
at the single rate and the rate is not reduced by the
income of the person’s partner.
- Where
a person is not legally married to a partner, s 4(2)(b) relevantly provides, in
effect, that a person is a “member of a couple”, for the
purposes of the Act, in the following terms:
“4 Family relationships definitions—couples
...
Member of a couple—general
(2) Subject to subsection (3), a person is a member of a couple for the
purposes of this Act if:
(a) ....
(b) all of the following conditions are met:
(i) the person has a relationship with a person of the opposite sex (in
this paragraph called the partner);
(ii) the person is not legally married to the partner;
(iii) the relationship between the person and the partner is, in the
Secretary’s opinion (formed as mentioned in subsections (3)
and
(3A)), a marriage-like relationship;
(iv) both the person and the partner are over the age of consent
applicable in the State or Territory in which they live;
(v) the person and the partner are not within a prohibited relationship
for the purposes of section 23B of the Marriage Act
1961.”
- Under
s 4(3) of the Act, the Secretary (and now this Tribunal standing in the shoes of
the Secretary) is required to have regard to
all the circumstances of the
relationship between two people including, in particular, certain enumerated
matters. Section 4(3)
provides as follows:
“4. Member of a couple—criteria for forming opinion about
relationship
(3) In forming an opinion about the relationship between 2 people for the
purposes of paragraph (2)(a) or subparagraph (2)(b)(iii),
the
Secretary is to have regard to all the circumstances of the relationship
including, in particular, the following matters:
(a) the financial aspects of the relationship, including:
(i) any joint ownership of real estate or other major assets and any joint
liabilities; and
(ii) any significant pooling of financial resources especially in relation
to major financial commitments; and
(iii) any legal obligations owed by one person in respect of the other
person; and
(iv) the basis of any sharing of day-to-day household expenses;
(b) the nature of the household, including:
(i) any joint responsibility for providing care or support of children;
and
(ii) the living arrangements of the people; and
(iii) the basis on which responsibility for housework is
distributed;
(c) the social aspects of the relationship, including:
(i) whether the people hold themselves out as married to each other;
and
(ii) the assessment of friends and regular associates of the people about
the nature of their relationship; and
(iii) the basis on which the people make plans for, or engage in, joint
social activities;
(d) any sexual relationship between the people;
(e) the nature of the people’s commitment to each other,
including:
(i) the length of the relationship; and
(ii) the nature of any companionship and emotional support that the people
provide to each other; and
(iii) whether the people consider that the relationship is likely to
continue indefinitely; and
(iv) whether the people see their relationship as a marriage-like
relationship.”
- The
list in s 4(3) is not exhaustive and other relevant factors may be taken into
account. The existence or absence of any one factor
is not conclusive. Regard
must be given to the overall circumstances of the relationship and whether, on
the balance of probabilities,
the relationship would generally be recognised as
marriage-like.
- Under
s 4(3A), the Secretary (and again this Tribunal standing in the shoes of the
Secretary) must not form an opinion concerning
a “marriage-like
relationship” in the circumstances described. Section 4(3A) provides as
follows:
“(3A) The Secretary must not form the opinion that the relationship
between a person and his or her partner is a marriage-like
relationship if the
person is living separately and apart from the partner on a permanent or
indefinite basis.”
- However,
s 24(2) of the Act provides that the Secretary may determine that, for a special
reason in the particular case, a person
should not be treated as a member of a
couple. Section 24(2) reads:
“24 Person may be treated as not being a member of a couple
(subsection 4(2))
...
(2) Where:
(a) a person has a relationship with a person of the opposite sex (the
partner); and
(b) the person is not legally married to the partner; and
(c) the relationship between the person and the partner is a marriage-like
relationship; and
(d) the Secretary is satisfied that the person should, for a special reason
in the particular case, not be treated as a member of
a couple;
the Secretary may determine, in writing, that the person is not to be
treated as a member of a couple for the purposes of this
Act.”
- In
relation to overpayment of Parenting Payment (Single), Parenting Payment
(Partnered) is subject to an income test as set out in
the rate calculator in
s 1068A of the Act. “Income” under the Act includes all types
of income, such as income
from employment, and the income of a partner, if any.
Section 68(2) of the Social Security (Administration) Act 1999
(“Administration Act”) requires a person to notify Centrelink of
changes to their circumstances that might affect the
payment of their social
security benefits.
- In
relation to Sole Parent Pension, under s 249 of the Act prevailing at the
relevant time, a person was not qualified for Sole Parent
Pension if the person
was a member of a couple. In relation to Newstart Allowance, the benefit is
subject to an income test which
takes into account the income of a partner. The
same applies in relation to Special Benefit.
- In
relation to Family Tax Benefit, which is administered under the A New Tax
System (Family Assistance) Act 1999 (“FA Act”) and the A New
Tax System (Family Assistance) (Administration) Act 1999 (“FA
Administration Act”), s 3(1) of the FA Act provides that the expression
“member of a couple” there has
the same meaning as in the Act.
Family Tax Benefit is subject to an income test, the details of which are set
out in the Rate Calculator
in Schedule 1 of the FA Act. Section 20C of the FA
Administration Act provides that a person’s eligibility for, and rate of,
Family Tax Benefit may be affected by the adjusted taxable income of the
person’s partner. Section 28 of the FA Administration
Act provides that,
where an income tax return of a claimant or the claimant’s partner is not
lodged, the Secretary must vary
the determination of the amount of Family Tax
Benefit or instalment so that the claimant is not, and never was, entitled to
Family
Tax Benefit.
BACKGROUND
- The
following factual background has been extracted from the decision of the SSAT.
RFZX acknowledged that the factual background,
as extracted, was correct, save
and except the modifications that have been made to maintain confidentiality.
RFZX resides in a
house (“House”) in an Adelaide suburb. She has
resided in the House since early 1991. Mr B has owned the House since
approximately 1988 or 1990. In November 1990, RFZX enrolled for an electronics
course near the House. She was looking for accommodation
near to where the
course was conducted and saw a notice for rental of part of the House. She
contacted Mr B and, in February 1991,
he said she could start renting. He did
not ask for a bond. At the time, a bus driver also rented part of the House.
When she
first moved into the House, RFZX paid Mr B rental in cash (then, up to
$350 a fortnight), but she did not obtain a receipt. RFZX
is not currently
paying any rent to Mr B and he has not said anything to her about the payment of
outstanding rent.
- In
the first half of 1991, RFZX developed health problems and surgery was carried
out in January 1992. After the operation, she was
advised that if she wanted
children she should start trying as soon as possible. She spoke to Mr B and
asked him if he would be
prepared to “donate sperm” and he
agreed. This conversation took place around June or July 1992. The sperm
donation was not undertaken under medical supervision
or procedure. Rather,
RFZX and Mr B “just had sex” in order to have children. She
“wanted two kids” and she wanted both of them “with
him”.
- Eventually,
RFZX and Mr B had two children together - child A, a girl, born on 26 April 1993
and child B, a boy, born on 23 February
1996. When child A was born, Mr B asked
if he could be present at the birth. There was no one else present, besides Mr
B. The
children know that Mr B is their father and how they were conceived.
They see him very Friday and Monday. He stays overnight on
Fridays and on
Mondays he is at the House all day until 9:00pm. He only started staying
overnight on Fridays nights in November
2008 and this is still continuing. The
children are now aged 15 and 12, but they still share a bedroom and always
have.
- Mr
B’s Westpac bank account, income tax returns from 1995 to 2001, birth
records for child B, GE Money Motor Solutions loan
documentation, business
activities, home utilities documentation and Australian Post verification
confirm that Mr B’s residential
address is the House. He has also
maintained the address of the House for the registration of his car and trailer
since 7 January
1991. Medical records obtained by Centrelink relating to child
B’s birth in 1996 describe Mr B as “next of kin” and
state that the applicant and Mr B are “buying their own
home”. These records also refer to him as “supportive
husband”, as well as “de facto” and
“partner”. Mr B has completed income tax returns for the
1995/1996 to 2000/2001 financial years, but has not submitted any income tax
returns
since 2001. There is no record, in Mr B’s income tax returns from
1995 to 2001, of him declaring the House to be an investment
property. When he
resides in the House, he occupies a back room of the residence from which he
runs a business. He attends the
House to check his emails once a fortnight.
RFZX, Mr B and their children from time to time share the living areas of the
House.
Mr B undertakes maintenance around the House and owns most of the
furniture in it. RFZX owns all of the bedding, towels and other
linen. RFZX
and Mr B maintain separate bank accounts. Her National Bank details record her
marital status (in 2005) as “de facto”.
- RFZX
did not want Mr B to have any significant involvement with the upbringing of the
children. The arrangement was that she would
have the children and he would see
them on a regular basis. She told him that she was not, and would not be,
asking for any maintenance.
She ultimately sought child support from him, but
only because Centrelink insisted on it. RFZX and Mr B jointly make certain
decisions
relating to the children. If they need to see a doctor, both RFZX and
Mr B accompany them. Mr B is the school emergency contact
for the children and
he gives them presents at Christmas and on their birthdays. RFZX attends to the
housework at the House, with
child A assisting on Saturdays.
- Mr
B has also resided at his parents’ home in another Adelaide suburb. After
his mother’s death, he cared for his father
for a period at his
parents’ home. His father died on 3 December 2007. He also stayed at the
house after his father died,
until August 2008. Mr B’s parents were keen
for their son to marry and have children. He took child A and child B to see
his parents and the parents wanted to see the children. This practice did not
start until the children were about five or six years
old and only lasted a few
months because the parents found the children too noisy. His parents never
visited the House and RFZX
did not have any contact with other members of Mr
B’s family.
EVIDENCE OF THE APPLICANT
- In
the course of examination, RFZX said that she was unable to obtain any evidence
from witnesses. None were prepared to come forward.
Mr B had indicated that he
did not want to become involved. She lived on her own with her two children at
the House address and
Mr B did not reside there. Under an agreement she had
with him, he visited the children on a regular basis when he felt like it.
He
would pick them up and take them out for the day. There was no marriage-like
relationship with Mr B.
- When
RFZX moved into the House in early 1991, another person (bus driver) was living
there and it was her intention to occupy only
one bedroom with access to
facilities. The other occupant moved out in about July 1991 and she took over
the rental of the whole
House. It was at this stage that she met Mr B. He came
to the House a few times to do some renovations and, as she said, “we
would sit around and talk and we would have a few drinks and then he would leave
and I asked him if he would donate some
sperm so I could have a child”.
At that time, he had indicated that he did not want children, but eventually
agreed. Sexual intercourse occurred for the first child
on a fortnightly basis.
She said she did not want two children, but child B was an accident and sexual
relations occurred at a business
party at the House for Mr B’s clients.
- The
room that Mr B maintained at the House was his office that he used for his
computer equipment and to access his emails fortnightly.
The room had a bed in
it, which he used from time to time. RFZX said that Mr B bought the House in
around November 1990, not December
1988. Mr B was present at the birth of both
child A and child B. He had asked to be present in the delivery room, but he
had not
cut the umbilical cord. She said the hospital records were wrong and
were supposed to read “a friend cut the umbilical cord”.
- When
she first moved into the House and up until July 1991, RFZX was paying rent of
$100 per week for one bedroom and the lounge and
kitchen to share. When she
commenced occupying the whole House, with the exception of the back office, the
rent increased to about
$150 a week, then to $175 a week sometime in 1992. She
said that both her children went to school, but Mr B had no involvement with
their schooling. With the exception of one occasion, Mr B had no involvement
with the children’s medical issues. On their
birthdays, Mr B would buy
them a present and take them out. The House had two bedrooms, one of which she
occupied and the children
in the other. Mr B had lived in the House for about a
year around 1990, but moved back to live with his parents when his mother
tried
to commit suicide. It was then that the bus driver became a tenant of the
premises. He moved into the House in December 1990
and left in July 1991. She
said Mr B lived at his parents’ address from about December 1990 onwards.
His mother died in 2000
and his father died in December 2007. After his
father’s death and on his lawyer’s advice, he lived at the House
until
about August 2008. During that period, he lived in the back room of the
House. Although information from Metropolitan Domiciliary
Care suggested that
Mr B was not living in his father’s home between 11 September 2006
and 3 December 2007, RFZX said
that that information was wrong. Domiciliary
Care would not have seen Mr B because he occupied the back part of the
residence.
- In
respect of her relationship with Mr B, she regarded him as a friend, but nothing
more. There was no loving relationship. She
denied identifying herself as Mr
B’s partner. He was only a friend and the medical records that described
him as her “next of kin” and “supportive
husband” were wrong. The reference to the commencement of a
“de facto” relationship with Mr B was also wrong. She said
that she took her children to see Mr B’s parents once or twice, or he
would
take them himself. There was no regular contact between the children and
the parents. They wanted to have grandchildren. RFZX
denied that she had a
sexual relationship with Mr B beyond the conception of her two children. Mr B
was not involved in decisions
about the children’s education or clothing.
There was no joint decision-making and she made all the decisions about the
upbringing
of her children.
- As
far as meals were concerned at the House, particularly in the period between
December 2007 and August 2008, she said she cooked
her meals and the meals of
her children inside. Mr B cooked his meals outside on the barbeque and he ate
the meals outside. The
children would take their meals and join him outside to
eat. RFZX did not eat outside with them. The children would call Mr B by
his
christian name. After meals, she would join the children in the lounge, but Mr
B would go to his office with the door locked.
She did not do his washing and
he did his own shopping. He did not help her with her shopping, with the
exception of one occasion
to pick up a bicycle trailer that she had ordered over
the internet. In the case of emergencies with the children, Mr B was the
nominated contact person if she was not available.
- RFZX
acknowledged that she was not presently paying any rent for the House as she was
not in receipt of any income. That situation
commenced in August 2008 when her
social security benefits ceased. In the meantime, Mr B was allowing her to live
rent free in the
House and then to pay back the outstanding rent. This had been
discussed and agreed with Mr B. She said there were no arrangements
with him
for the sharing of financial commitments. She had discussed with Mr B attending
the hearing as a supporting witness, but
“he wanted nothing to do with
it”. There were no other witnesses who were prepared to give evidence.
Although the SSAT
said RFZX had admitted Mr B was involved with issues regarding
the children’s education and he attended medical appointments
jointly with
her where it related to the children, she said that this was wrong. There were
no social aspects of the relationship
with Mr B and she did not go out with him,
either with or without the children. There were no mutual friends and no one
would consider
them as a couple.
- In
cross-examination, RFZX said that she did have a rent book in respect of the
House, but no longer maintained it. She also had
receipts for the rental, which
had been shown to Centrelink, but did not have them with her. She said that Mr
B was now paying child
support of $50 a week to her for the children, in
addition to allowing her to stay in the House rent-free. The child support was
paid in cash and she has no records of the support. She acknowledged that Mr B
came to the House fortnightly to check his emails,
on special occasions to see
the children and to eat meals with them. He would also come to the House when
she was not there and
would gain entrance to his office from outside. There was
no lease in existence in respect of the rental of the House and there
was no
documentation regarding Mr B’s occupancy of the back office. When asked
about the incorrect bank and medical records
describing her as “de
facto” and referring to her “partner” and
“supportive husband”, she said that she tried to correct
these descriptions, but the bank and the hospital would not change them. She
had no evidence
of requests she had made to change the records.
CONSIDERATION
Was the applicant a “member of a couple” from 26 April 1993 to
28 August 2008?
- This
case is a particularly difficult one. One reason is because, with the exception
of the period between December 2007 and August
2008, RFZX has consistently
denied that Mr B resided at the House. And during the excepted period RFZX
claimed that they lived separately
and apart in the House. In these
circumstances and like the SSAT, the Tribunal has had to rely on information
from other sources
to form a view about the relationship and living arrangements
between RFZX and Mr B from 26 April 1993 to 28 August 2008 (“Relevant
Period”). The other reason is because of the number of inconsistent
statements and untruths that RFZX has acknowledged she
made or have occurred
during the Relevant Period.
- The
main issue in the applicant’s case is whether she was, for the Relevant
Period and for the purposes of the Act, a member
of a couple. The provisions of
the Act that are relevant to this issue are ss 4(2)(b) and 4(3). The only
aspect of s 4(2)(b)
that is relevant is whether the relationship between
RFZX and Mr B was a marriage-like relationship, and that aspect must be
considered
having regard to the criteria referred to in s 4(3).
- The
matters listed in s 4(3) of the Act are not exhaustive, since the
decision-maker’s obligation under that section “is to have regard
to all the circumstances of the relationship including, in particular, the
[enumerated] matters”. The Tribunal notes the discussion at
[6.56] to [6.60] in DC Pearce and RS Geddes, Statutory Interpretation in
Australia, (6th Edition, 2006) in relation to the
meaning of the word “includes” in this context. It is clear
that the decision-maker is required to assess the totality of the evidence and
other available material
in order to decide whether an applicant for a pension
or other social security benefit is a member of a couple, taking into account
that the personal circumstances of people vary substantially: see
Staunton-Smith v Secretary, Department of Social Security [1991] FCA 513; (1991) 25 ALD
27; Pelka v Secretary, Department of Family and Community Services [2006] FCA 735; (2006)
151 FCR 546. It is nevertheless necessary to “have regard to”
the relevant matters, and this expression has been interpreted to entail a
requirement to take the relevant matters into account and
give weight to them as
a fundamental element in the decision-making process: R v Toohey; Ex Parte
Meneling Station Pty Ltd [1982] HCA 69; (1982) 158 CLR 327 at 333.
- In
Pelka (supra) French J (as he then was), after setting out the provisions
of ss 4(2) and 4(3) of the Act, reviewed a number of authorities
where the
Courts have considered various analogous criteria or statutory formulae to
determine whether a marriage-like relationship
existed. His Honour provided at
paragraph 46 what is, with respect, a most helpful summary of the effect of the
authorities. He
said:
“46. Having regard to the current provisions of s 4(3) and the
approaches discussed in the earlier authorities mentioned,
a decision-maker
concerned with whether an unmarried person is in a marriage-like relationship
with another person of the opposite
sex:
1. Must have regard to their interpersonal relationship as a whole not
limited by the factors listed in s 4(3).
2. Must have regard to each of:
(a) the financial aspects of the relationship;
(b) the nature
of the household;
(c) the social aspects of the relationship;
(d) any sexual relationship between the people;
(e)
the nature of the people’s commitment to each other.
3. In having regard to the preceding five matters, must have regard to all
factors relevant to each and, in particular, must have
regard to the factors
listed under each heading in s 4(3).
4. Must specifically consider the total picture of the relationship created
by all of these factors bearing in mind that consideration
must be given to
those which weigh against a marriage-like relationship and those which weigh in
favour of it.
5. Must undertake the preceding consideration bearing in mind that a
marriage-like relationship is not disclosed solely by any one
of the following
matters:
(a) financial cooperation;
(b) cohabitation;
(c)
a sexual relationship;
(d) cooperative household arrangements;
(e) mutual commitment.”
- The
Tribunal noted there were a number of occasions where the evidence of RFZX, in
connection with her relationship with Mr B and
his residence in the House, was
not consistent with other factual information before the Tribunal. For
example:
- (a) Mr B had
maintained the House address for the registration of his car and trailer since
January 1991;
- (b) Mr
B’s bank account, income tax returns, birth records for child B, loan
documentation, business activities and Australia
Post verification confirm that
his address is the House;
- (c) medical
records relating to child B’s birth describe Mr B as “next of
kin”, they state that the applicant and Mr B are “buying
their own home” and they also refer to Mr B as “supportive
husband”, as well as “de facto” and
“partner”;
- (d) while
initially stating in a Family Payment/Maternity Allowance claim form that
another person was the father of her two children,
the applicant subsequently
confirmed that Mr B was the father of her two children;
- (e) while
initially stating that a different “Mr B” (who she alleged was a
cousin of Mr B) owned the House, she confirmed
that no such “cousin”
existed and that the father of her children owned the House;
- (f) although
the applicant said they were all wrong, medical records relating to the birth of
child B identified Mr B as “de facto”,
“partner” and “supportive husband”;
- (g) although
she told the SSAT that Mr B had been involved in the education and medical
treatment of the children, she said that this
was wrong;
- (h) the
applicant falsely stated to Centrelink that Mr B was married to another
woman;
- (i) the
applicant also falsely stated to Centrelink that she was a lesbian;
- (j) although
Metropolitan Domiciliary Care recorded that, during a care period of over a year
for his father, Mr B had not been living
at his father’s residence, the
applicant said that he was living “out the back” at the
time.
- The
Tribunal found the applicant to be somewhat disinterested in the proceedings
taking place. It was often difficult to obtain clarifying
answers and she
appeared to adopt an attitude of indifferent resignation. To put it
colloquially but without intending any disrespect,
obtaining responses from her
at times was like drawing blood from a stone. Notwithstanding the
Tribunal’s repeated efforts
to encourage her to again seek the attendance
of Mr B to give evidence, the applicant seemed unwilling to consider the
suggestion.
She repeated that Mr B did not want to be involved and it appeared
obvious to the Tribunal that she did not want to force him to
do so. During the
course of the hearing, Ms Welfare indicated that she was considering the issue
of a subpoena and to seek an appropriate
adjournment. However, given the
applicant’s demeanour and the resistance she displayed to having Mr B
present, Ms Welfare
did not proceed with this course. The question of the issue
of the subpoena is further considered later in these reasons.
- In
matters involving a determination of whether a person is a member of a couple or
in a marriage-like relationship, an assessment
of credibility is frequently of
vital importance. The Tribunal has carefully considered the instances referred
to in paragraph 33
of these reasons and the other matters before it and is
satisfied that there are a number of telling inconsistencies and contradictions
in the applicant’s evidence when compared with the other information
available. Overall, the Tribunal is not satisfied that
the applicant gave a
truthful account of the essential matters pertaining to her relationship with Mr
B. The following are the Tribunal’s
findings about the relationship
criteria to be considered pursuant to s 4(3) of the
Act.
FINANCIAL ASPECTS OF THE RELATIONSHIP
- RFZX
and Mr B had separate banking and financial arrangements. The House is
registered in Mr B’s name. The applicant has been
in occupation of the
House since early 1991. However, the Tribunal agrees with the SSAT that there
is no evidence of the actual
payment of rent or the existence of some form of
lease during the Relevant Period. The applicant had no rent book and was unable
to produce any receipts for past rental payments. More particularly, the
applicant has not been in a position to make any rental
payments since 28 August
2008 when her Parenting Payment ceased, and she has not been evicted. As there
would be a significant debt
for outstanding rent payable to Mr B, if he sought
to recover it, there has been an obvious pooling of financial resources.
- Mr
B runs a business from a room in the House, but there is no sub-lease or other
documentation with the applicant regarding this
arrangement. He is free to come
to and go from the House in the conduct of his business, including the answering
of emails, even
when the applicant is not present, and he has outside access to
the premises. Until recently, all of the utilities at the House
were in his
name. Although he has not lodged an income tax return since 2001, between
1995/1996 and 2000/2001 he has not declared
the House as an investment property.
- On
the applicant’s evidence, child A attends Le Fevre High School and child B
attends Le Fevre Primary School. As she has not
been in receipt of Parenting
Payment (Single) since 28 August 2008, the Tribunal questions whether the
applicant has, in fact, been
receiving assistance from Mr B in connection with
the schooling of the children.
NATURE OF THE
HOUSEHOLD
- In
the Assessment of Living Arrangements form completed on 21 September 2007, the
applicant stated that Mr B helped decide matters
about the children’s
education. He was also listed as an emergency contact for school purposes when
the applicant was unavailable.
Although she said there was no joint
decision-making, Mr B accompanied the applicant when medical visits were made
involving the
children. He gave presents to the children for their birthdays
and at Christmas and, for a time, took them to visit his parents.
On the
evidence, the Tribunal is satisfied that the applicant and Mr B together
provided care and support for the children. Also,
the applicant’s
evidence was that, when Mr B was at the House, they would buy their own food,
she would cook for herself and
the children, and he would cook for himself
outside. She would eat inside by herself and the children would take their meals
outside
and eat with their father. Given the other background information, the
Tribunal is unable to accept that, on a regular basis, such
an arrangement
existed.
- In
the decision of the SSAT the Tribunal notes the applicant’s admission, in
the context of the time she says was spent by Mr
B at the House, that the family
shared the living areas of the House and she did all the housework. There is
also surveillance evidence
that the applicant and Mr B were together putting up
exterior Christmas decorations and that Mr B was undertaking outside jobs around
the House. It is also noted that Mr B owns all the furniture in the House and
the applicant owns all the bedding, towels and other
linen. The Tribunal agrees
with the view expressed by the SSAT that the furniture and manchester were
shared by the family, including
Mr B.
THE SOCIAL ASPECTS
OF THE RELATIONSHIP
- On
the evidence of the applicant, there were no social aspects of the relationship
with Mr B and she did not go out with him, either
with or without the children.
There were no mutual friends and no one would see them as a couple. However,
the Tribunal is reminded
that there was at least one occasion in 1995 when the
applicant socialised with Mr B and his business clients at a barbecue. Subject
to what is said above, the Tribunal is satisfied that, during the Relevant
Period, RFZX and Mr B did not engage in joint social activities.
SEXUAL RELATIONSHIP BETWEEN RFZX AND MR B
- The
applicant denied any sexual relationship with Mr B, other than the arrangement
designed to produce child A and child B. The Tribunal
finds it difficult to
accept that during the Relevant Period, particularly between December 2007 and
August 2008 when the she acknowledges
Mr B was living at the House, the
applicant did not engage in further sexual relations with him. However, as was
said by Ms J Cowdroy,
Member in Re Ford and Secretary, Department of Family
and Community Services [2003] AATA 7 (at paragraph
35):
” ... The fact that there is no sexual relationship is not decisive,
and regard should be had to the comments of Senior Member
Hayes in Re
Spencer and Secretary, Department of Social Services (1987) 13 ALD 497,
particularly the statement (at 500):
‘It would be obviously unsatisfactory to perform the task of
categorising a relationship by reference to a 'tick-off list',
with a particular
points tally in mind. For in essence, the adumbrated factors are signposts to a
goal for which the decision-maker
is searching. That goal is the isolation of
some exquisite quality in a relationship between two people which distinguishes
it from
the others build up in the course of their lives.’”
NATURE OF PERSONS’ COMMITMENT TO EACH OTHER
- It
is clear that the applicant and Mr B were committed to each other in a number of
respects, particularly:
(a) the care of their children; and
(b) the maintenance and upkeep of the House.
They first met each other in 1991 and they have two mutual children who, at
the time of the hearing, were 16 years of age and 13 years
of age. The
applicant has lived in the House and has known Mr B, as the owner of the House,
for 18 years. This obviously demonstrates
the long-standing nature of their
association. However, their relationship was different from the typical
landlord/tenant relationship.
There was evidence of some emotional support
between them. Mr B was present at the birth of both child A and child B.
Although
she said the references in medical records to Mr B as
“next of kin”, “supportive husband” and
“de facto” and his cutting of the umbilical cord were all
wrong, the Tribunal is unable to accept the extent of the errors in the records
that
the applicant indicates. Mr B’s parents wanted to have grandchildren
and, although there may not have been regular contact
between them and their
grandchildren, both the applicant and Mr B took them to see his parents on
occasions. There was clearly an
ongoing relationship between the applicant and
Mr B during the Relevant Period and, as was submitted by Ms Welfare, the
Tribunal
accepts that there was a strong commitment between them during this
period to preserve the family unit.
OVERALL ASSESSMENT
- As
already mentioned and like the SSAT, in the face of the applicant’s
denials and her apparent indifference to the proceedings,
the Tribunal found
this case to be a particularly difficult one. In its reasons, the SSAT observed
(at paragraph 64):
“64. ... However, the Tribunal had the benefit of speaking at length
to [RFZX] in the hearing and of observing her difficulties in justifying
many of her statements both verbal and in writing to Centrelink over
many years.
She admitted to the Tribunal that she lied about many vital and essential facts,
from the paternity of her children,
to the owner of the [House], to the
marital status of [Mr B] and to her own sexuality. The Tribunal has
weighed this information against the information which has been recorded by
objective
and impartial third parties such as medical documentation, loan
documentation, certificate of title of the property, bank, utilities
and
Australia Post documentation, business documentation, car and trailer
registration documentation and [Mr B’s] income tax returns. It has
taken into account that [RFZX] and [Mr B] have two children aged
12 and 15 and that he is significantly involved in their care as well as the
fact that they have both lived
at the [House] (which [Mr B] owns)
for such a long period of time. On balance, the Tribunal has formed the
opinion, that the truth of the situation is that [RFZX] and [Mr B]
have been living as a member of a couple since at least 26 April 1993 to 28
August 2008 and therefore that Centrelink correctly cancelled
[RFZX’s]
parenting payment on 28 August 2008.”
- In
Secretary, Department of Education, Employment and
Workplace Relations v Holmes [2008] FCA 105, Logan J said (at paragraph
35):
“35. “Marriage-like” means nothing more than resembling a
marriage. In this very general sense some meaning, a
usual or
“normal” meaning, must be given to the word “marriage”.
In considering what this meaning might be
the learned senior member evidently
gained assistance from and came to apply a meaning given to the word by Deputy
President Forgie
in Re VCG and Secretary, Department of Employment and
Workplace Relations; [2006] AATA 956; (2006) 93 ALD 215, at 223, [15]
in which she observed that a general feature of marriage was “..... a
sense of union between two people and a
common purpose”. That observation
by the Deputy President followed a comprehensive survey by her of judicial
observations and
those in the texts of various religions as to what constituted
“marriage”. A similar meaning for the word “marriage”
is
derived by recourse to standard Australian dictionaries, “a lawful union
between a man and a woman for life”: Macquarie
Dictionary, Federation
Edition, p. 1172; “the legal union of a man and a woman in order to live
together and often to have
children”: Australian Oxford Dictionary, p.
828. The essential quality of the word, “marriage” is
union.”
- In
Staunton-Smith (supra), when dealing with similar provisions to s 4(3) of
the Act in the Social Security Act 1947, O’Loughlin J in the
Federal Court referred to the list of subject-matters relating to “bona
fide domestic basis”
that were mentioned in Re Tang and
Director-General of Social Services (1981) 3 ALN N83 and said [at pages
32-33 and 35]:
“...
It is not suggested that this list is exhaustive nor will each of these
subjects fall to be considered in every case. It must also
be emphasised that a
particular answer to a single subject will rarely, if ever, supply a final
solution. The responsibility of
the fact-finding tribunal is to have regard to
all the material facts of each case, treating the matters listed above only as
indicators.
The tribunal will make its determination whether a particular man
and woman are or are not living separately and apart only after
assessing the
totality of the evidence and other material that is before it.
It should, of course, be clearly understood that no tribunal is required, in
every case, to compile something in the nature of a checklist
and then to
proceed slavishly to comment on each item in the list. The personal
circumstances of people vary substantially. The
responsibility of the tribunal
is to extract from the evidence and other material that is before it those items
of information that
are properly classified as material to its deliberations.
If the tribunal performs that task it will only address those issues that
are
personal to the decision that is under review; it will then be able to state its
findings on material questions of fact with
appropriate references to the
evidence or other material on which those findings were
based.”
- The
primary direction given by s 4(3) is to assess the nature and quality of a
relationship between two people by reference to all of the circumstances
of that relationship. The evident intent of Parliament is to ensure that
administrative decision-makers, and Tribunals on review, concern themselves with
the substance, not the form, of a relationship.
Regard must be given to the
weight to be placed on the various elements that characterise the relationship
and which might be regarded,
on the balance of probabilities, as being a
marriage-like relationship. Ms Welfare submitted that the Tribunal should apply
the
rule in Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 and draw the inference that
the applicant’s failure to call (or agree to allow the calling of) Mr B as
a witness meant that
his evidence would not support her case. Given the
circumstances and the approach taken by the applicant as an unrepresented party,
the Tribunal has decided not to apply the rule in Jones v Dunkel (see
Re Rodger and Secretary, Department of Social Security (1991) 24 ALD
720). The applicant was clearly reluctant to agree to the calling of Mr B and,
because of this, the Tribunal has determined to respect
her wishes and rely only
on the evidence before it.
- Having
regard to all of the factors in s 4(3) of the Act and overall to the evidence
before it, the Tribunal is satisfied that the
applicant was in a marriage-like
relationship with Mr B during the Relevant Period, namely 26 April 1993 to 28
August 2008. It follows
that she was a member of a couple, at the time of the
decisions under review, for the purposes of s 4(2) of the
Act.
Was Parenting Payment (Single) paid to the applicant
correctly cancelled on 28 August 2008?
- For
the reasons above, as the applicant was in a marriage-like relationship during
the Relevant Period, her Parenting Payment (Single)
was correctly cancelled on
28 August 2008.
Were there overpayments to the applicant of the
social security benefits referred to in paragraph 1(b) to (h) above?
Overpayment of Parenting Payment (Single)
-
During the period 2 April 1998 to 19 August 2008, the applicant received
Parenting Payment (Single). The Tribunal has found that
the applicant was a
member of a couple for the period 2 April 1998 to 28 August 2008 (with the last
Parenting Payment being made
up to 19 August 2008) and that she did not advise
the respondent of her circumstances as required by s 68(2) of the Administration
Act. The respondent’s calculation of the overpayment, which the Tribunal
is satisfied is correct, took into account Mr B’s
income according to his
income tax returns up to 30 June 2001. Because Mr B has not lodged income tax
returns beyond 30 June 2001,
the debt period has been reduced to the period 2
April 1998 to 30 June 2001 and the overpayment of Parenting Payment (Single) has
been reduced to $14,924.31 for this period. The Tribunal is satisfied that both
the overpayment period (2 April 1998 to 30 June
2001) and the overpayment amount
or debt of $14,924.31 have been correctly calculated.
Overpayment
of Sole Parent Pension
- The
applicant received Sole Parent Pension during the period 18 April 1996 to 19
March 1998. As the Tribunal has found, during this
period she was a member of a
couple with Mr B and, as such, was not qualified to receive Sole Parent Pension.
In the circumstances,
the Tribunal is satisfied that the applicant received Sole
Parent Pension of $17,934.00 to which she was not entitled during the
period 18
April 1996 to 19 March 1998 and an overpayment has
occurred.
Overpayment of Newstart Allowance
- The
applicant received Newstart Allowance from 21 June 1991 to 25 January 1996,
which benefit was subject to an income test that took
into account the income of
a partner in determining the correct rate of Newstart Allowance. The Tribunal
has found that the applicant
was living with Mr B as a member of a couple from
26 April 1993. However, his income has only been ascertained from his income
tax
returns for the period 1 July 1995 to 25 January 1996 and, hence, the
current overpayment is limited to the period 1 July 1995 to
25 January 1996,
being an amount of $4,966.20. The Tribunal is satisfied that the overpayment of
Newstart Allowance of $4,966.20
has been correctly calculated.
Family Tax Benefit
- In
the applicant’s case, the amount of Family Tax Benefit in relation to her
children was originally calculated on the basis
that she was not partnered. The
Tribunal has found that she has been living as a member of a couple with Mr B
since 26 April 1993.
The final rate of Family Tax Benefit has been determined
by reconciling the amount paid to the applicant and Mr B’s adjusted
taxable income. However, the reconciliation has not occurred in relation to the
financial years after 30 June 2001 as Mr B
has not lodged income tax
returns since that date. By applying s 28 of the FA Administration Act, the
amount of Family Tax Benefit
properly payable to the applicant has been
determined as a nil entitlement. As a result, the Tribunal is satisfied that
there have
been overpayments of Family Tax Benefit to the applicant of
$14,064.62 for the 2005/2006 financial year, $15,312.90 for the 2006/2007
financial year and $15,927.54 for the 2007/2008 financial year. If income tax
returns since 30 June 2001 are lodged by Mr B, the
overpayments of Family Tax
Benefit that have been calculated, as appearing in this paragraph, may be
reduced.
Overpayment of Special Benefit
- Special
Benefit was paid to the applicant during the period 26 January 1996 to 4 April
1996 when she was pregnant with child B. Special
Benefit is affected by the
income of a partner and, in the applicant’s case, the benefit did not take
into account Mr B’s
income during the period 26 January 1996 to 4 April
1996. Taking into account the income declared in Mr B’s income tax return
for the 1995/1996 financial year, the Tribunal is satisfied that this would have
reduced the applicant’s entitlement to Special
Benefit to nil. As such,
she was overpaid $1,692.90 for the period 26 January 1996 to 4 April
1996.
Have the overpayments been correctly calculated and are
they debts due to the Commonwealth?
- The
Tribunal has reviewed the particulars contained in the Centrelink
MultiCal-Centrelink Debt Calculator (Exhibit R1, pages 224-363) and, as
far as can be determined, the overpayments of the social security benefits
referred to in paragraphs
1(b) to (h) have been correctly calculated.
- Section
1223(1) of the Act sets out the circumstances where a recoverable debt arises
from the overpayment of social security benefits.
The section applies no matter
what the reason for the overpayment, including overpayments caused by an
intentional failure to comply
with the law or from administrative error. The
section reads:
“1223 Debts arising from lack of qualification, overpayment
etc.
[see Note 6]
(1) Subject to this section, if:
(a) a social security payment is made; and
(b) a person who obtains the benefit of the payment was not entitled for
any reason to obtain that benefit;
the amount of the payment is a debt due to the Commonwealth by the person
and the debt is taken to arise when the person obtains
the benefit of the
payment.”
- Under
s 1223(1), the Tribunal is satisfied that the overpayments of Parenting Payment,
Sole Parent Pension, Newstart Allowance and
Special Benefit are recoverable
debts due by the applicant to the Commonwealth. A debt due to the Commonwealth
by a recipient may
be waived by the respondent, pursuant to s 1237A(1) or s
1237AAD of the Act, if certain circumstances exist. Section 1237A(1)
is
mandatory where a debt has arisen which is solely due to an administrative error
by the respondent.
- In
relation to the overpayments of Family Tax Benefit, s 71(2) of the FA
Administration Act provides that if an amount of Family Tax
Benefit has been
paid to a person that is greater than the amount of assistance that should have
been paid to the person under Family
Assistance law, then the amount is a debt
due to the Commonwealth. Section 71(2) reads:
“ 71 Debts arising in respect of family assistance other than
child care benefit and family tax benefit advance
...
(2) If:
(a) an amount (the received amount) has been paid to a person by way of
assistance; and
(b) the received amount is greater than the amount (the correct
amount) of assistance that should have been paid to the person under the
family assistance law;
the difference between the received amount and the correct amount is a debt
due to the Commonwealth by the person.”
The Tribunal is satisfied that the overpayments of Family Tax Benefit paid
during the relevant financial years are debts due by the
applicant to the
Commonwealth.
Should any or all of the overpayments, as debts due to the Commonwealth,
be waived or written off?
- There
are limited provisions in the Act for waiving the right to recover all or part
of a debt. One of these, s 1237A(1), allows
for waiver of recovery where the
proportion of a debt is attributable solely to administrative error on the part
of the Commonwealth
and was received by the debtor in good faith. In the
Tribunal’s view, s 1237A(1) is not applicable. In relation to the
overpayment
of Parenting Payment, Sole Parent Pension, Newstart Allowance and
Special Benefit, there is no proportion of the debts that was attributable
solely to administrative error on the part of the Commonwealth. The Tribunal has
found that the debts were caused by the applicant
failing to inform the
respondent that she was a member of a couple with Mr B during the Relevant
Period.
- Similar
provisions to those in s 1237A(1) are contained in s 97 of the FA Administration
Act. Section 97 reads:
“97 Waiver of debt arising from error
(1) The Secretary must waive the right to recover the proportion (the
administrative error proportion) of a debt that is attributable
solely to an
administrative error made by the Commonwealth if subsection (2) or (3) applies
to that proportion of the debt.
(2) The Secretary must waive the administrative error proportion of a debt
if:
(a) the debtor received in good faith the payment or payments that gave
rise to the administrative error proportion of the debt;
and
(b) the person would suffer severe financial hardship if it were not
waived.
...”
The Tribunal is not satisfied that the overpayments of Family Tax Benefit
were caused by Commonwealth error. As was observed by the
SSAT, it is open to
the applicant to have these debts re-assessed by supplying the income details
for Mr B for the years in question.
- Under
s 1237AAD of the Act, debts due to the Commonwealth may be waived on the grounds
of special circumstances. The section reads:
“1237AAD Waiver in special circumstances
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.”
Equivalent special circumstances provisions (in relation to the Family Tax
Benefit debts) are set out in s 101 of the FA Administration
Act. The
provisions read:
“101 Waiver in special circumstances
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 the family
assistance law; 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.”
In the Tribunal’s view, based upon the evidence before it, the
applicant made false statements and representations to Centrelink
over a long
period of time and she did this knowingly. Although she did not admit this to
the Tribunal, it appears she did so to
the SSAT (see paragraph 86 of the
SSAT’s reasons). In these circumstances, both section 1237AAD of the Act
and s 101 of the
FA Administration Act are not capable of applying.
- Sections
1236(1) and 1236(1A) of the Act allow for the write-off of debts due to the
Commonwealth and read:
“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:
(a) the debt is irrecoverable at law; or
(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.
...”
Equivalent provisions to those in ss 1236(1) and 1236(1A) are contained in ss
95(1) and 95(2) of the FA Administration Act in relation
to the Family Tax
Benefit debts. Sections 95(1) and 95(2) read:
“95 Secretary may write off debt
(1) The Secretary may, on behalf of the Commonwealth, decide to write off a
debt for a stated period or otherwise, but only if subsection
(2), (4A) or (4B)
applies.
Secretary may write off debt if debt irrecoverable or debt will not be
repaid etc.
(2) The Secretary may decide to write off a debt under subsection (1)
if:
(a) the debt is irrecoverable at law; or
(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.”
- In
s 1236(1A) of the Act and s 95(2) of the FA Administration Act the Secretary may
write-off the debts of the applicant due to the
Commonwealth, for a stated
period or otherwise, only in the following situations:
(a) The debts
are irrecoverable at law. In the present case, the Tribunal is satisfied that
the respondent is able to recover the
debts of the applicant at law.
(b) The debtor has no capacity to repay the debts. The Tribunal does not
have before it particulars of the applicant’s assets
or her current
financial position. As recognised by the SSAT, some of the debts may be reduced
or eliminated by the applicant supplying
income details of Mr B for past years.
Apart from this, there is no evidence that the applicant does not have the
capacity, albeit
over a period of time, to repay the debts.
(c) The debtor’s whereabouts are unknown. This exception is not
applicable in the applicant’s case.
(d) It is not cost effective for the Commonwealth to take action to recover
the debts. Although no submissions were put to the Tribunal
by Ms Welfare in
relation to this aspect, the Tribunal accepts it is cost effective for the
Commonwealth to take action to recover
the debts.
- It
follows that the debts of the applicant due to the Commonwealth are not capable
of being written-off, for a stated period or otherwise,
pursuant to s 1236(1A)
of the Act and/or s 95(2) of the FA Administration Act.
- Having
made the finding in the previous paragraph, the Tribunal notes that the
write-off provisions in s 1236 of the Act were considered
by Member, Dr E K
Christie in Re Harding and Secretary, Department of Families, Community
Services and Indigenous Affairs [2007] AATA 1104. At paragraphs 16 and 17
of his reasons he
said:
“16. A former President of the Tribunal, Mathews J, has commented on
the write-off provisions of s 1236 of the Social Security Act 1991
– a similar provision to s 95 of the FAA Act in Re L and
Secretary, Department of Social Security (1995) 21 AAR 412. Matthews J
observed that the financial circumstances of the debtor and the prospect of the
recovery of the debt will necessarily
be the primary considerations in deciding
whether to write off a debt. Mathews J summarised the position as follows (at
428):
|
‘In summary, I consider that matters relating to the personal financial
hardship of the individual are always relevant in any
decision as to write-off
under s 1236(1). Retrospective considerations may occasionally be relevant.
The essential inquiry will always be whether recovery is a feasible
proposition, bearing in mind the financial means and obligations
of the
individual concerned. Will recovery cause such personal hardship as to run
contrary to the beneficial nature of the legislation? If an affirmative
answer is reached to this question, then it would be appropriate to defer
recovery in the manner contemplated by
s 1236(1).’ (Tribunal
Emphasis).
17. In considering its discretion for write-off under the Social
Security Act 1991, the Tribunal has also had regard to a number of factors
referred to by the Federal Court in Director-General of Social Services v
Hales (1983) 47 ALR 281. These factors were summarised by Senior Member Dwyer
in Re Waller and Secretary, Department of Social Security (1985) 8 ALD 26
at 42 as follows:
|
‘(a) the fact that the applicant has received public moneys to which
she was not entitled;
(b) the way in which the overpayment arose,
whether as a result of innocent mistake or fraud;
(c) the financial
circumstances of the defendant;
(d) the prospect of
recovery;
(e) whether a compromise is offered;
(f) whether
recovery should be delayed if there is a prospect that the circumstances of the
person who received the overpayment may
improve; and
(g) compassionate
considerations and the fact that the Act is social welfare legislation and any
financial hardship which may result
from an action for
recovery.’”
- In
Re Harding, Dr Christie concluded that there was no attempt whatsoever by
Ms Harding to deceive Centrelink or to act fraudulently. He found her
to be a
witness of truth who acted honestly with Centrelink. Having reached this
conclusion he decided that the debt in Ms Harding’s
case should be
written-off for a period of 12 months, at which time she would prepare an
updated Statement of Financial Circumstances
and the respondent would consider
whether to extend write-off for a further period or to recover the debt. The
Tribunal is gravely
concerned about the significant debts that are due to the
Commonwealth by the applicant as a result of these proceedings. It is
also
acutely aware of the beneficial nature of the social security laws that are
involved. However, given the significant period
and the circumstances under
which RFZX has knowingly been living with Mr B in a marriage-like relationship,
the Tribunal is unable
to make the same type of concession, about the periodical
write-off of the debts due by her to the Commonwealth, that was made by
Dr
Christie in Re Harding. The Tribunal has sympathy for the
applicant’s position. It would be the Tribunal’s strong
recommendation to the respondent
that satisfactory arrangements be made with the
applicant to enable repayment of the debts over an extended period of time,
including
any arrangements for their re-assessment as a result of the supply of
Mr B’s income details for the years in question.
DECISION
- The
Tribunal affirms the decisions under review.
I certify that the 67 preceding paragraphs are a true copy of the
reasons for the decision herein of Senior Member R W Dunne
Signed: .............J
Coulthard.........................................
Associate
Date of Hearing 15 October 2009
Date of Decision 20 January 2010
Advocate for the Applicant Self-represented
Advocate for the Respondent Ms M Welfare
Centrelink
Legal Services and Procurement Branch
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