18.104.22.168 Waiver of a Small Debt
SSAct section 1237AAA permits the waiver of debts less than $200. It reflects the approach that the recovery of debts should be based on commercial considerations relating to the present value of the debt and the cost-effectiveness of recovery.
In determining whether it is cost-effective to pursue recovery, a number of factors must be considered, including:
- the amount of the debt,
- the total value of all the recipient's debts collectively,
- the cost of any further recovery,
- the cost, in terms of staff resources, in calculating and recording the debt and advising the recipient, and
- the prospect for recovery.
SSAct subsection 1237AAA(2) provides that a debt less than $200 should not be waived where the amount of the debt is greater than $50 and could be recovered by deductions under SSAct section 1231.
Act reference: SSAct section 1237AAA Waiver of small debt