7.2.6 Debt Recovery by Legal Proceedings
Recovery by legal proceedings
A debt (1.1.D.60) may be recovered by legal proceedings in some circumstances. A recommendation is obtained from the Director of Public Prosecutions as to whether legal action is appropriate.
If a debt is recoverable by legal proceedings, then the debt is recoverable by the Commonwealth in a court of competent jurisdiction.
Act reference: FA(Admin)Act section 88 Legal proceedings
Policy reference: FA Guide 7.2.1 Debt Recovery - General Provisions
When an individual is convicted of an offence, the court may issue a Reparation Order for the amount covered by the charges. This is an order that the individual must repay the money to the Commonwealth.
Reparation Orders may not always cover the full amount of the debt.
When an individual is prosecuted for an indictable offence and the individual holds assets acquired as a result of committing the offence, the court may issue a Forfeiture Order. The order provides that the assets become the property of the Commonwealth. The Commonwealth cannot dispose of the assets until the individual has been convicted of the offence/s and the appeal period has elapsed.