18.104.22.168 Waiver of small debts
Centrelink must waive the debt if:
- the debt is, or is likely to be, less than $200, and
- it is not cost effective for the Commonwealth to take action to recover the debt.
Exception: If the debt is $50 or more and could be recovered by deduction or setting off in relation to a payment to which the debtor is entitled under another Act, Centrelink will take action to recover the debt.
In determining whether it is cost effective to pursue the recovery of a debt the following factors should be considered:
- the amount of the debt,
- the cost of any further investigation,
- the cost of recovery in terms of staff resources, calculating and recording the debt and advising the debtor, and
- the prospect for recovery.
Act reference: PPLAct section 197 Waiver of debts-small debts