The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

7.1.2 FA debts - individuals & ACOs

Introduction

This section covers information on FA (1.1.F.02) debts (1.1.D.60) for an individual (1.1.I.90) or an ACO (1.1.A.80) including:

  • recoverable debts that relate to FTB, FTB advances, SIFS and SBP
  • recoverable debts that relate to CCS and ACCS
  • debts that relate to all FA payments.

Debts arising in respect of FTB, SIFS & SBP

The following table shows the types of recoverable debts that relate to FTB, SIFS and SBP.

If the debt occurred because the individual was … then the amount of the recoverable debt is the … FA(Admin)Act reference
not entitled to payment for a particular period or event full amount of the payment paid for that period or event. section 71(1) No entitlement to amount
paid an amount that was greater than their correct entitlement difference between their correct entitlement and the amount they were paid. section 71(2) Overpayment

Debts arising in respect of FTB advances

The following table shows the types of recoverable debts that relate to FTB advances only.

If the overpayment occurred because the individual … then the amount of the recoverable debt is the … FA(Admin)Act reference
was not entitled to FTB Part A on the advance assessment day (1.1.A.55) based on their actual circumstances full amount of the advance paid to the individual. section 71A(1) No entitlement to advance.
was paid an advance amount that was greater than their correct advance amount based on their actual circumstances difference between the correct advance amount and the advance amount that was actually paid. section 71A(2) Overpayment
ceased to be entitled to FTB Part A by instalments during an advance repayment period the amount of unrepaid advance from when the individual's entitlement to FTB Part A ceased. section 71A(3) Debt arising during the repayment period for a FTB advance
is not currently entitled to FTB Part A, the repayment period for a previous advance has expired and, due to a variation in FTB Part A entitlement during the advance repayment period, the FTB Part A rate was insufficient to recover the repayments the amount of the advance left unrepaid as a result of the variation. section 71A(4) Debt arising due to variation or review after the repayment period for a FTB advance has expired
is subject to a non-lodger determination (6.4.3.20) affecting an advance repayment period the amount of the advance left unrepaid as a result of the determination*. section 71A(5) Debt arising due to variation under subsection 28(2) or (6)
at the discretion of the secretary, has an FTB Part A rate that is insufficient to cover the reduction, i.e. FTB Part A rate is below the base rate for one child under 18 the amount of unrepaid advance from when the discretion is applied. section 71A(7) Debt arising due to determination under clause 45 of Schedule 1 to the Family Assistance Act

* If the individual's non-lodger status is subsequently resolved, the advance debt is taken to never have occurred and normal reconciliation processes apply.

Act reference: FA(Admin)Act section 3(1)-'family tax benefit advance', section 3(1)-'advance assessment day', section 3(1)-'FTB advance debt', section 35C Amount of FTB advance, section 71A Debts arising in respect of FTB advances

Policy reference: FA Guide 1.2.8.10 FTB advance payments - details, 3.1.11 Advance payment of FTB Part A

Recoverable debts in respect of CCS & ACCS

The following table shows the types of recoverable debts that relate to CCS and ACCS.

If the overpayment occurred because the individual … then the amount of the recoverable debt is the … FA(Admin)Act reference
was not entitled to a payment for one or more sessions of care full amount of the payment paid for one or more sessions of care. section 71B Debts in respect of CCS or ACCS-no entitlement
was paid an amount for one or more sessions of care that was greater than their correct entitlement difference between their correct entitlement and the amount they were paid. section 71C Debts in respect of CCS or ACCS-overpayment
  • knowingly made a false statement or misrepresentation to an approved provider (1.1.A.90) or a Centrelink officer, and
  • was paid an amount of ACCS (child wellbeing) that was greater than their correct entitlement
 difference between their correct entitlement (1.1.E.30) and the amount they were paid. section 71E Debts in respect of ACCS (child wellbeing) for provider-individual at fault

Debts incurred under the child care benefit (CCB) and child care rebate (CCR) arrangements may be transferred to be treated as CCS debts.

AAT stay orders

If, as a result of an individual applying to the AAT second review for a review of a decision, the AAT orders that the amount of FA paid to the individual was more than they were entitled to, the difference is a recoverable debt.

Note: This provision does not apply if the Secretary made the application for review.

Act reference: FA(Admin)Act section 73 Debts arising from AAT stay orders, section 128 Application for AAT second review

Individual other than the payee obtains payment from a cheque

If an amount of FA is paid by cheque, the amount of the cheque is a debt due by the individual who obtained the value of the cheque if:

  • an individual other than the payee obtains possession of the cheque
  • the payee has not endorsed the cheque, and
  • the individual obtains value for it.

Individual convicted of assisting a debtor to breach FA law

Both the individual and the other individual are jointly and severally liable to repay the debt if:

  • FA was overpaid to the individual because they breached a provision of the FA law, and
  • another individual is convicted of assisting the individual to breach FA law.

Consideration should be given to any views expressed in the criminal court hearing about the responsibility of the individual to repay the debt.

Act reference: FA(Admin)Act section 75 Debts arising from conviction of person for involvement in contravention of family assistance law by debtor

Criminal Code Act 1995 section 11.2 Complicity and common purpose, section 11.4 Incitement, section 11.5 Conspiracy

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