Commonwealth Numbered Acts Commonwealth Numbered Acts(1) If the Commonwealth has agreed to settle a civil action against a debtor for recovery of a debt for less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.
Settlement of proceedings before the AAT
(2) If the Secretary has agreed to settle proceedings before the AAT relating to recovery of a debt on the basis that the debtor will pay less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.
Waiver where at least 80% of debt recovered and debtor cannot pay more
(3) If:
(b) the Commonwealth and the debtor agree that the recovery is in full satisfaction for the whole of the debt; and
(c) the debtor cannot repay a greater proportion of the debt;
Agreement for part-payment in satisfaction of outstanding debt
(4) If the Secretary and a debtor agree that the debtor's debt will be fully satisfied if the debtor pays the Commonwealth an agreed amount less than the amount of the debt outstanding at the time of the agreement (the unpaid amount ), the Secretary must waive the right to recover the difference between the unpaid amount and the agreed amount.
Limits on agreement to accept part-payment in satisfaction of outstanding debt
(5) The Secretary must not make an agreement described in subsection (4) unless the Secretary is satisfied that:
(b) the agreed amount is at least the present value of the unpaid amount repaid in instalments whose amount and timing is determined by the Secretary; and
(c) it would take at least a year to recover the unpaid amount under Part 2 if subsection (4) did not apply.
(6) For the purposes of subsection (5), the present value of the unpaid amount is the amount worked out in accordance with the following formula:
where:
annual repayment is the amount of the debt that the Secretary believes would be recovered under Part 2 in a year if subsection (4) did not apply in relation to the debt.
interest is the annual rate of interest specified by the Minister by determination in writing.
rp (repayment period) is the number of years needed to repay the unpaid amount if repayments equal to the annual repayment were made each year.
Determination is a disallowable instrument
(7) A determination for the purposes of the definition of interest in subsection (6) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .