7.3.2 Waiver of debts
This section contains information about the circumstances in which the recovery of debts (1.1.D.60) to the Commonwealth may be waived (1.1.W.10).
The recovery of a debt may be waived only under the specific circumstances that are covered in topics in this section.
Date of effect for waiving a debt
A debt waiver takes effect on the day:
- specified in the decision, or
- the day the decision is made if there is no date specified.
Act reference: FA(Admin)Act section 96 Power to waive Commonwealth's right to recover debt
Effect of waiver
When a decision has been made to waive a debt or part of a debt, no further recovery action on the waived amount can be taken.
Note: The decision to waive a debt is subject to review. If, upon review, the decision to waive the debt is set aside and substituted with a new decision, the (previously waived) debt may be recoverable.
If Centrelink's intention is to defer the recovery of a debt, the debt must be written-off instead.
Policy reference: FA Guide 7.3.1 Writing-off a debt