6.3.6 Disability & Carer Overpayments
An overpayment of CP occurs for the period that a care receiver's (1.1.C.20) (and any other person included in the care receiver income test) estimated income was used when evidence shows that:
- the income was underestimated, AND
- the actual taxable income of the care receiver (and any other person included in the care receiver income test) is more than the income limit.
CP overpayments arising this way are NOT a debt (1.1.D.40) due to the Commonwealth UNLESS there is some definite indication of the CP recipient being involved in the care receiver's (and any other person included in the care receiver income test) financial affairs. If the carer can show that it was NOT reasonable for them to know of the circumstances that led to the overpayment, no debt should be raised.
Example: A carer (1.1.C.40) could reasonably be expected to be involved in the care receiver's financial circumstances if they:
- are the nominee for the care receiver, AND/OR
- have enduring power of attorney for the care receiver, AND/OR
- have had all dealings on behalf of the care receiver with the delegate.
Act reference: SSAct section 8(1)-'income', section 23(1)-'taxable income', section 198A Income test, section 198B Taxable income, section 1223(1B) Some carer payment overpayments are not debts, section 1223(1C) Some carer payment overpayments are debts if carer knew about care receiver's affairs
Policy reference: SS Guide 3.6.4 CP - Qualification & Payability