Public statement regarding income apportionment

A recent decision by the Administrative Appeals Tribunal regarding income apportionment (Secretary, Department of Social Services and FTXB) has been appealed to the Full Federal Court by the respondent to the Tribunal proceedings.

I have carefully considered the legal position and I remain confident in the interpretation of the law advanced by my Department, and I will be making submissions to that effect during the appeal process.

The raising and review of debts potentially affected by income apportionment was paused in July 2021. Recovery of debts potentially affected by income apportionment has been paused since October 2023.

In April 2024, Services Australia restarted a limited number of internal reviews, explanations of decisions and new debt raising activities, in line with the Department’s interpretation of the law. This was in response to the Commonwealth Ombudsman’s recommendations in their 2023 reports, Lessons in Lawfulness and Accountability in Action. These reports emphasised the need for the Department to reach a firm legal position and restart debt activity in a timely manner. The Department achieved this, in consultation with Services Australia, the Ombudsman, and welfare rights stakeholders.

I have reconsidered this position in light of the appeal to the Full Federal Court. To minimise the potential future impact of an adverse decision on individuals, I have directed Services Australia to redirect resources to other work until the appeal is resolved (effectively pausing internal reviews, explanations of decisions and raising of new debts potentially affected by income apportionment).

However, I am aware that there are individuals, who for personal and related compelling reasons, require resolution of a debt potentially affected by income apportionment. Not having access to an internal review is preventing these people from seeking further external review and/or addressing their concerns. Accordingly, if an individual in this situation contacts Services Australia and asks that their review proceed, their internal review or explanation of decision will be progressed in accordance with the Department’s interpretation of the law. Individuals will be given information about the Full Federal Court appeal and their review and appeal rights will be explained. They will also be made aware that their debt may change in the future, should a Court determine a different interpretation of the law. Services Australia will also progress any reviews or explanation of decisions it is aware of where an individual has already requested it be progressed as part of the recommencement activities in April this year.

Services Australia will continue identifying, processing and recovering debts which are not affected by income apportionment.

People with concerns or questions about their debt can also contact Services Australia’s income apportionment line on 1800 560 870. Further information is also available at Information about income apportionment - Managing your money - Services Australia.

Ray Griggs AO CSC
Secretary

Last updated: 23 October 2024 - 5:00pm