6.7.3.80 Waiver of debt on the basis of notional entitlement

Summary

SSAct section 1237AAC mandates waiver where the debtor or the debtor's partner had an unclaimed entitlement to family payment (FP), family allowance, parenting allowance (PgA) or PP.

Waiver of family payments & family allowance

SSAct section 1237AAC(1) allows for waiver of both FP or family allowance if the debtor or the debtor's partner did not claim FP or family allowance for the overpayment period and the debtor or the debtor's partner would have been eligible for FP or family allowance had a claim been lodged.

The amount of FP or family allowance to be waived under SSAct section 1237AAC(1) is provided for in SSAct section 1237AAC(2) and section 1237AAC(2A). This section states that the Secretary must waive the right to recover the amount no greater than an amount equivalent to the debtor's (or the debtor's partner's) basic entitlement to FP or family allowance during a period of 3 years ending on the day the overpayment stopped.

The rate used to determine the amount of FP or family allowance is referred to in SSAct section 1237AAC(3).

Waiver of PgA & PP

SSAct section 1237AAC(4) allows for waiver of debts if the person has an unclaimed entitlement to PgA or PP. An additional requirement for PgA and PP is that the debt can only be waived IF the overpayment did not result wholly or partly from the debtor or the debtor's partner knowingly making a false statement, false representation or failing to comply with a provision of the act.

SSAct section 1237AAC(5) deals specifically with the amount that must be waived under SSAct section 1237AAC(4). This section states the Secretary must waive the right to recover the amount no greater than an amount equivalent to the debtor's (or the debtor's partner's) basic entitlement to PgA or PP during a period of 3 years ending on the day the overpayment stopped.

The rate used to determine the amount of PgA or PP is referred to in SSAct section 1237AAC(6).

Act reference: SSAct section 1237AAC Waiver where debtor or debtor's partner would have been entitled to an allowance

Last reviewed: 12 August 2019