6.7.3.100 Waiver of AoS debts
Summary
SSAct section 1061ZZGG states that if the assuree receives a recoverable social security payment (as specified in the Social Security (Assurances of Support) Determination 2018) during the assurance period, the assurer/s are jointly and severally liable to pay the Commonwealth the amount of the social security payment. The usual write off and waiver requirements apply to AoS debts and the following rules also apply.
If an assurer has given a security that meets the requirements of SSAct subsection 1061ZZGD(3) in connection with the assurance, part or all of the debt may be waived under the following SSAct sections:
- section 1237AAA Waiver of small debt (debts less than $200 that are not cost-effective to recover)
- section 1237AAB Waiver in relation to settlement, or
- section 1237AAD Waiver in special circumstances.
When considering whether a waiver under special circumstances (SSAct section 1237AAD) applies, the waiver must be considered on grounds other than one or more of the assurers being unaware of SSAct section 1061ZZGG, or of regulations made under the Migration Act 1958.
The debt amount that may be waived is equal to or less than the difference (if any) between the debt and the amount that can be recovered from the bond or security in order to reduce the debt.
Money recovered from the bond or security can only be used to reduce one AoS debt. It cannot be used to reduce any other debt.
If 2 or more assurers are jointly and severally liable for a debt, part or all of the debt may be waived under SSAct section 1237AAD (special circumstances).
SSAct section 1237AAD (special circumstances) may be applied to waive a debt amount equal to or less than the difference between the debt and any amounts that can be recovered from the bond or security and can be applied to reduce the debt AND the amount equal to or less than an amount that cannot be recovered from any of the assurers (where 2 or more assurers are jointly and severally liable) where BOTH of these circumstances apply.
Act reference: SSAct section 1237AAE Extra rules for waiver of assurance of support debts, section 1061ZZGG Liability to pay for social security payments
Policy Reference: SS Guide 6.7.3.10 Write off of debt, 6.7.3.20 Waiver of debt