7.3.5 Writing off debts
Centrelink may decide to write off (1.1.W.60), for a stated period or otherwise, a debt that is due to the Commonwealth under the PPLAct.
Centrelink may write off a debt only if:
- the debt is irrecoverable at law, or
- the debtor has no capacity to repay the debt, or
- the debtor's whereabouts are unknown after all reasonable efforts have been made to locate the debtor, or
- it is not cost effective for the Commonwealth to take action to recover the debt.