Recovery by the Commissioner of Taxation of Family Assistance Debts Inquiry
The Administrative Review Council (Council) is conducting an inquiry into the Commissioner of Taxation's recovery of family assistance debts.
The inquiry follows a notification of a systemic issue by the President of the Administrative Review Tribunal on 16 September 2025 (Notice of Systemic Issue No. 1 of 2025).
The systemic issue concerns the Australian Taxation Office’s (ATO) practice of using individuals' income tax refunds to recover overpaid family assistance benefits, once Services Australia informs the ATO of the overpayment.
As part of its inquiry, the Council will review:
- the statutory framework relevant to the systemic issue
- the practices and procedures used by Services Australia, the Department of Social Services and the ATO to recover family assistance debts
- the internal and external review rights available to individuals who are impacted by the systemic issue, including:
- whether those review avenues are adequate
- how information about those rights is communicated.
The Council proposes to report on its inquiry to the Attorney-General during the first quarter of the 2026–27 financial year.