6.7.1.50 Debts arising from prepayments & certain other payments

Summary

A debt may arise from prepayment of a person's (or their partner's) social security payment in the following circumstances:

  • The person receives a prepayment of their social security payment but fails to provide a statement under section 67 of the SS(Admin)Act reporting an anticipated change in circumstances that could affect their payment.
  • The person receives a prepayment of partner allowance and their partner fails to provide a statement under section 67 of the SS(Admin)Act reporting an anticipated change in circumstances that could affect their payment.
  • The person receives a prepayment of their social security payment that is more than the amount they are eligible to receive in the prepayment period.
  • The person and makes a statement under section 67 of the SS(Admin)Act estimating their income or anticipating a change of circumstances and receives a prepayment, but the person’s actual income or the circumstances that occur are different from those anticipated, resulting in an overpayment.

Examples include:

  • prepayments for early Christmas payments
  • crisis payments, and
  • prison release payments.

For a prepayment debt to exist the prepayment must have been made in accordance with SS(Admin)Act section 57.

Under SSAct subsection 1223AA(1A), the Secretary may determine that subsection 1223AA(1) or subsection 1223AA(1AA) does not apply in the special circumstances of the case, if it is appropriate to make such a decision.

For certain other payments, for example, CrP, a debt may arise where the person was not qualified for the payment or the amount was not payable to the person.

Act reference: SSAct section 1223AA Debts arising from prepayments and certain other payments

SS(Admin)Act section 67 Person who has made a claim

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