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6.3.4.60 Recovery from an authorised deposit-taking institution

Introduction

A debt that is recoverable by the Commonwealth arises in cases where an instalment of PLP or a PPL funding amount is paid to an ADI for the credit of an account kept with the ADI in the name of a person or persons, and:

  • the payment was intended to be paid to someone other than the person, or those persons, or
  • the payment was intended to be paid to the person, or one of those persons, but the person for whom the payment was intended dies before the payment was made.

Centrelink may recover these debts from the ADI. Any amount recovered by the Commonwealth from an ADI in this way reduces the amount of the debt.

Payment into an account of someone other than the intended recipient/s

If an instalment of PLP or a PPL funding amount is paid to an ADI for the credit of an account kept with the ADI, and the payments were intended for someone other than the person in whose name the account was kept, Centrelink may give a written notice to the ADI requiring it to pay back the lesser of the following amounts:

  • the amount of the instalment of PLP or PPL funding amount, or
  • the amount standing to the credit of the account when the notice is given to the ADI.

Death of intended recipient

If Centrelink has paid an instalment of PLP or PPL funding amount to the account of a person who has died, then Centrelink may issue the ADI with a written notice requiring the ADI to pay to the Commonwealth the lesser of:

  • the amount of the instalment of PLP or PPL funding amount, as stated in the notice, or
  • the amount standing to the credit of the account when the notice is given to the ADI.

If the notice relates to payment to a person who has died, Centrelink must inform the deceased estate in writing of the amount sought to be recovered from the deceased person's account, and reasons for the recovery action.

Offence for contravening notice

An ADI that refuses or fails to comply with a repayment notice is subject to a penalty of 300 penalty units.

Act reference: PPLAct section 192 Recovery from an ADI

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