The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

7.3.2.30 Waiving a small debt

Summary

This topic provides information about waiving (1.1.W.10) the recovery of small debts (1.1.D.60) including:

  • waiver of small debts
  • debts not subject to the small debt waiver
  • when the small debt waiver applies, and
  • one-off waiver.

Waiver of small debts

Section 99 of the FA(Admin)Act provides that Services Australia must waive the right to recover an FA debt if the debt is, or is likely to be, less than the small debt waiver threshold referred to in section 1237AAA of the SSAct. This amount was $250 as at 20 March 2026.

The small debt waiver threshold is indexed on 1 July each year.

If Services Australia suspects fraud or serious non-compliance in relation to a debt waived under this section, the waiver does not prevent Services Australia from taking further appropriate action against the debtor or any other person.

Act reference: FA(Admin)Act section 99 Waiver of small debt

SSAct section 1237AAA Waiver of small debt

Policy reference: SS Guide 1.1.S.185 Small debt waiver threshold, 6.7.3.60 Waiver of a small debt

Debts not subject to the small debt waiver

The small debt waiver does not apply if the debt could be recovered by setting off against one or more CCS or ACCS payments.

Example: A customer currently in receipt of CCS has a $120 CCS debt. As the debt can be recovered by setting off against future CCS payments, the small debt waiver does not apply.

Act reference: FA(Admin)Act section 82 Methods of recovery, section 84A Setting off family assistance against debt owed, section 87A Setting off an approved provider against child care service payments

Policy reference: FA Guide 7.2.10 Debt recovery of CCS/ACCS by offsetting - prior to reconciliation

When the small debt waiver applies

Amendments made by Schedule 2, Part 2 of the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025 apply to:

  • FA debts under the small value debt waiver threshold raised on or after 20 March 2026, and
  • FA debts raised before 20 March 2026 but varied (for example, following a review) to below the small value debt waiver threshold on or after 20 March 2026.

If an FA debt that is varied after the commencement date of the provision (for example, following a review) and the debt amount is reduced to under the small debt waiver threshold, it will be waived.

Debts which are only under the small debt waiver threshold due to payments made towards that debt, or other waivers applied to the debt (for example, special circumstances waiver), are not eligible for the small debt waiver.

Act reference: Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025 Part 2 Item 13 Application of Amendments

One-off waiver

The Social Security and Other Legislation Amendment (Technical Changes No. 2) Act provides a one-off waiver of the Commonwealth's right to recover certain FA amounts that are recorded in Services Australia's systems immediately before 20 March 2026 that would be, or would likely be, a debt of less than $250 if that amount were to be raised as a debt under the FA(Admin)Act.

Note: CCS and ACCS are excluded and will be addressed through the reconciliation process.

Act reference: Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025 Schedule 2 Part 3 One-off waiver

Policy reference: FA Guide 6 Review & reconciliation

Last reviewed: