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.

6.7.3.80 Waiver of debt on the basis of notional entitlement

Summary

If a debt arises from overpayments made to a recipient, the debt must be waived if the debtor or their partner had an unclaimed entitlement to family payment (FP), family allowance (FA), parenting allowance (PgA) or PP in the period when the overpayments were made.

Under SSAct section 1237AAC(2A) the amount of the debt waived must be equal to the amount of the unclaimed entitlement that would have been payable in the 3 years prior to the end of the debt period.

Waiver of FPs & FA

SSAct section 1237AAC(1) allows for waiver of both FP or FA if the debtor or the debtor's partner did not claim FP or FA for the overpayment period and the debtor or the debtor's partner would have been eligible for FP or FA had a claim been lodged.

Additionally, a debt raised for overpayments of YA must be waived if the debtor would have been an FA child of another person had they not been receiving YA, AND if FA would have been payable to the other person during the debt period if they had lodged a claim.

The amount of the debt to be waived must be equal to the debtor's or the debtor's partner's basic entitlement to FP or FA in the 3-year period ending on the day the overpayment stopped.

The rate used to determine the amount of FP or FA is referred to in SSAct section 1237AAC(3).

Waiver of PgA & PP

SSAct section 1237AAC(4) allows for waiver of debts if the debtor or their partner has an unclaimed entitlement to PgA or PP. An additional requirement for PgA and PP is that the debt can only be waived IF the overpayment did not result wholly or partly from the debtor or the debtor's partner knowingly making a false statement, false representation or failing to comply with a provision of the act.

The amount of the debt to be waived must be equal to the debtor's or the debtor's partner's basic entitlement to PgA or PP during the 3-year period ending on the day the overpayment stopped.

The rate used to determine the amount of PgA or PP is referred to in SSAct section 1237AAC(6).

Act reference: SSAct section 1237AAC Waiver where debtor or debtor's partner would have been entitled to an allowance

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