No Time Limit on Debt Recovery


As of 1 January 2017, legal proceedings or any action to recover a social security debt can be commenced at any time. The former 6 year statute of limitations no longer applies.

A debt that was deemed irrecoverable at law prior to 1 January 2017 cannot be pursued, however, Centrelink can still accept voluntary repayments of the debt.

Even when a debt was deemed irrecoverable at law due to the former statute of limitations, the debt still exists. The debt may be waived where appropriate.

Act reference: SSAct section 1234B No time limit on debt recovery action

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