Debts arising from prepayments & certain other payments


SSAct section 1223AA deals with debts arising from prepayments and certain other payments.

Examples include:

  • prepayments for early Christmas payments
  • crisis payments, and
  • prison release payments.

For a prepayment debt to exist the prepayment must have been made in accordance with SS(Admin)Act section 57.

SSAct subsection 1223AA(1A) allows the Secretary to determine that a prepayment debt does not arise under SSAct subsection 1223AA(1) or subsection 1223AA(1AA) if the Secretary is satisfied that, in the special circumstances of the case, it is appropriate to make such a decision.

Debts may also occur under SSAct subsection 1223AA(1BA) where a person estimates their income or anticipates a change of circumstances for prepayment purposes and consequently the estimates of incomes are different or the change in circumstances does not occur which results in the person receiving more than they were entitled to.

For certain other payments, for example, CrP, a debt may arise where the person was not qualified for the payment or the amount was not payable to the person.

Act reference: SSAct section 1223AA Debts arising from prepayments and certain other payments

Last reviewed: 12 August 2019