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.

6.7.3.60 Waiver of a small debt

Summary

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

Last reviewed: 3 January 2023

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