Waiver of a Small Debt


SSAct section 1237AAA permits the waiver of debts less than $200. It reflects the approach that the recovery of debts should be based on commercial considerations relating to the present value of the debt and the cost-effectiveness of recovery.

In determining whether it is cost-effective to pursue recovery, a number of factors must be considered, including:

  • the amount of the debt,
  • the total value of all the recipient's debts collectively,
  • the cost of any further recovery,
  • the cost, in terms of staff resources, in calculating and recording the debt and advising the recipient, and
  • the prospect for recovery.

SSAct subsection 1237AAA(2) provides that a debt less than $200 should not be waived where the amount of the debt is greater than $50 and could be recovered by deductions under SSAct section 1231.

Act reference: SSAct section 1237AAA Waiver of small debt

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