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. When a debt is irrecoverable


A debt is taken to be irrecoverable at law if:

  • the debt cannot be recovered under the relevant debt recovery methods under the PPLAct, or
  • there is no proof of the debt capable of sustaining legal proceedings for its recovery, or
  • the debtor is discharged from bankruptcy or administration and the debt was incurred before the debtor became bankrupt or entered into administration, and was not incurred by fraud, or
  • the debtor has died leaving no estate or not enough funds in the debtor's estate to repay the debt.

Act reference: PPLAct section 193(3) When a debt is irrecoverable

Last reviewed: