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. Debt repayment by instalments


SSAct section 1234 provides that a person may enter into an arrangement to pay a debt in one or more instalments.

The Secretary may terminate or alter an arrangement entered into at the debtor's request, or after the Secretary gives the debtor 28 days' notice of the proposed termination or alteration. Alternatively, the Secretary may terminate or alter an arrangement without notice, if the Secretary is satisfied that the person has failed to disclose material information about their true capacity to repay the debt.

SSAct section 1234 does not apply to debts owned by other departments. These debts cannot be repaid in instalments, but can be recovered through deductions from a debtor's or a third party's payment.

Act reference: SSAct section 1234 Arrangement for payment of debt

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