6.7.2.70 Debt recovery by deductions from payments to third parties
Summary
Under section 1234A of SSAct, debts incurred under the following acts may be recovered by deductions from the social security payment of person who is not the debtor, with that person's consent:
- Social Security Act 1991
- Social Security Act 1947
- The Parts of the Social Security (Administration) Act 1999 related to income management (Parts 3AA and 3B)
- A New Tax System (Family Assistance) (Administration) Act 1999
- Farm Household Support Act 2014
- Paid Parental Leave Act 2010
- Student Assistance Act 1973 as in force before 1 July 1998
- The Part of Student Assistance Act 1973 as in force before 1 July 1998 that related to youth training allowances abolished after this date (Part 8)
- Data-matching Program (Assistance and Tax) Act 1990
- Social Security (Fares Allowance) Rules 1998
The consenting person may withdraw their consent and end the recovery by deductions arrangement at any time.
Repayment of money recovered from a bankrupt debtor
Where the consenting person is bankrupt and has an amount deducted from their social security payment, the amount deducted should be repaid to the person.
Act reference: SSAct section 1234A Deductions by consent from social security payment of person who is not a debtor