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 1 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