Editors --- "Family tax benefit: special circumstances" [2010] SocSecRpr 8; (2010) 12(1) Social Security Reporter, Article 8

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Family tax benefit: special circumstances

PRICE and SECRETARY TO THE DFHCSIA

(2010/92)

Decided: 12th January 2010 by P.E. Hack

Background

Price received family tax benefit in 2000/2001 after providing an estimate of 2000/2001 income. Her husband did not lodge a tax return for the year ending 30 June 2001, therefore under the legislative scheme Price was treated as having nil entitlement to family tax benefit and a debt for the amount paid was raised.

Price and her husband separated in June 2005. She attempted to persuade her husband to lodge the tax return but he refused. She made contact with the Tax Office to see what steps could be taken to force this issue, but without success.

Price accepted that there was an overpayment but applied for it to be waived on the grounds of special circumstances.

The issue

The issue in this appeal was whether the debt should be waived on the basis of special circumstances.

Consideration

The AAT accepted that Price did not ‘knowingly’ make false statements or breach the Act. In addition, although the debt had been written off, the Tribunal found that Price was entitled to ‘some degree of certainty in her life’.

The AAT found five circumstances were relevant to special circumstances.

First, the lack of action taken by the Tax Office in pursuing lodgement of the tax return.

Second, there was nothing more that Price could do to force her ex husband to lodge the return.

Third, it seemed to the AAT that the actions of the ex husband were ‘occasioned by vindictiveness’.

Fourth, it was likely that, if the tax return was lodged, Price would have full entitlement.

Fifth, Price’s financial situation was such that she was considered to be under financial pressure, and she had the responsibility of bringing up three children.

Based on these circumstances, the AAT found Price’s circumstances out of the ordinary and quite different from the usual case. The entire debt was waived.

Formal decision

The AAT set aside the decision under review, and substituted a decision that the debt of $10,808.84 was to be waived.

[R.P.]