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.

1.1.D.50 Debt, debtor

Definition: debt

Generally, if a person has been paid more PLP than was payable to them, the excess amount is a debt due to the Commonwealth. If an employer is paid PPL funding amounts (1.1.P.180) and an equivalent amount is not paid as PLP instalments (1.1.I.80), the amount not paid is a debt due to the Commonwealth by the employer.

If a trustee (1.1.T.100) of a complying superannuation fund (1.1.C.141) or provider (1.1.P.275) of an RSA (1.1.R.50) does not credit a PPLSC or an underpaid amount (1.1.U.05) to an account of a person within 28 days of receiving the amount, the amount not credited is a debt due to the Commonwealth.

If the Commissioner of Taxation (1.1.C.125) pays a PPLSC that was not payable for the person or the amount paid is more than the correct amount, the amount overpaid (1.1.A.75) is a debt due to the Commonwealth by the superannuation provider or the person’s legal personal representative.

Note: Not all debts are recoverable. Depending on the circumstance, some debts may not be recoverable, they may be waived or written off.

Definition: debtor

A debtor is a person who owes a debt to the Commonwealth.

Act reference: PPLAct Part 4-3 Division 2 Main debts recoverable under this Act, section 193 When debts can be written off, Part 4-3 Division 7 Waiver of debts, section 201 Overseas application of debts, section 115P Recovery of overpayment of PPL superannuation contribution, section 115G Return of PPL superannuation contribution that cannot be credited to account, section 115L Return of underpaid amount that cannot be credited to account

Policy reference: PPL Guide 6.3 Debt recovery, 9.2.3 Return of a PPLSC or underpaid amount, 9.2.4 PPLSC overpayments

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