10.21.7.20 Overpayments Resulting from Arrears of Swiss Benefits
Overpayments
SSAct section 1228A allows for a debt to be raised against individuals who have been overpaid a benefit by one State as a result of the grant of a benefit by the other State. Recovery of a debt can be by cash refund, by withholding from future entitlements, or by withholding a portion of the arrears payable by the other State.
The recovery from future entitlements would generally only apply when:
- the arrears are insufficient to fully recover the overpayment, or
- the arrears have been released directly to the recipient.
Arrears
When the grant of a Swiss benefit includes arrears for a past period, any Australian income tested benefit received during the period the arrears covers may need to be reassessed. The Australian pension is reassessed as if the arrears had been paid and received from the grant of the Swiss benefit, or the date of grant of Australian benefit, whichever is the later. This determines whether the person has received more Australian benefit than their correct entitlement. See 10.1.8.10.
Act reference: SS(IntAgree)Act Schedule 20 Switzerland
SSAct section 1228A Comparable foreign payment debt recovery
Policy reference: SS Guide 4.3.6.10 Income from overseas payments - general rules, 10.1.8.10 Arrears of Foreign Payment