7.3.4.40 Payment of Debt by Arrangement

Summary

Centrelink may enter into a debt payment arrangement with a person who owes a debt. A debt payment arrangement requires the debtor to pay the outstanding amount of the debt by part payments in accordance with the terms of the arrangement.

A debt payment arrangement operates from the day stated in the arrangement as the day on which the arrangement starts (regardless of the actual day the arrangement is entered into). If the debt payment arrangement does not state what day the arrangement starts, then it is taken to operate on and after the day on which it is entered into.

Centrelink may terminate or alter a debt payment arrangement:

  • at the debtor's request, or
  • after giving 28 days' notice to the debtor of the proposed termination or alteration, or
  • without notice, if Centrelink is satisfied that the debtor has failed to disclose material information about their true capacity to repay the debt.

Act reference: PPLAct section 190 Payment of debts by arrangement

Last reviewed: 6 February 2017