Update to Secretary’s public statement on income apportionment

On 15 July 2025, the Full Court of the Federal Court of Australia handed down its judgement in the matter of Matthew Chaplin v Secretary, Department of Social Services (before the Tribunal as Secretary, Department of Social Services and FTXB).

The Court considered the meaning of the term ‘first earned, derived or received’ and accepted my preferred construction of the legislation.

All debt activity involving the assessment of employment income for social security recipients prior to 7 December 2020 was paused pending the Court’s judgement. Now there is certainty to the legal position, assessment activities will re-commence in line with the Court’s decision and my obligations as Secretary.

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 Information about income apportionment - Managing your money - Services Australia(Opens external website).

Michael Lye
Secretary

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