7.2.4 Debt Recovery by Cash

Recovery by cash

An arrangement may be made with the debtor to recover an FA debt (1.1.D.60) by cash instalments. This is also known as a cash arrangement.

Acceptable cash repayment rates

Wherever possible, recovery of Centrelink reconciliation debt is undertaken through withholdings from FTB instalments or arrears. A cash repayment arrangement may be entered into in addition to withholdings, but should not be the only recovery method if withholding from FTB is an available option.

The following table outlines the acceptable cash repayment level for those who make a cash repayment arrangement.

Balance of overpayments Amount per fortnight
Up to $750 $30
$750 - $1,500 $60
Over $1,500 Any amount that repays the overpayment within 12 months.

The amount of the instalments is determined by Centrelink in consultation with the individual, taking into account the amount of debt and individual's circumstances. An instalment can be one payment, if the debtor has the means to repay the debt, or an agreed number of instalments that will enable full recovery at the earliest time possible.

Act reference: FA(Admin)Act section 91 Arrangement for payment of debt by instalments

Policy reference: FA Guide 7.2.2 Debt Recovery by Deduction

Last reviewed: 7 November 2016