Commonwealth Numbered Acts

SOCIAL SECURITY (BUDGET AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1993 No. 121, 1993 - SECT 87

87. Section 1237 of the Principal Act is repealed and the following sections
are substituted: Application

"1236A. Sections 1237 and 1237A apply to all debts, whenever incurred, owed to
the Commonwealth and arising under this Act or under the Social Security Act
1947. Secretary must waive whole of a debt

"1237.(1) The Secretary may, on behalf of the Commonwealth, decide to waive
the Commonwealth's right to recover the whole of a debt from a person but only
in accordance with this section. Administrative error

"(2) The Secretary must waive if:

   (a)  the debt arose solely because of an administrative error made by the
        Commonwealth; and

   (b)  the person received in good faith the payment or payments that gave
        rise to the debt. Conviction of offence

"(3) The Secretary must waive if:

   (a)  a person is convicted of an offence; and

   (b)  in sentencing the court indicated that it imposed a longer custodial
        sentence on the person because the person was unable or unwilling to
        pay the debt. Valuing property

"(4) The Secretary must waive if:

   (a)  the debt arose because the person or the person's partner
        underestimated the value of particular property of the person or
        partner; and

   (b)  the estimate was made in good faith; and

   (c)  the value of the property was not able to be easily determined at the
        time when the estimate was made. Debt less than $200

"(5) The Secretary must waive if:

   (a)  the debt is, or is likely to be, less than $200; and

   (b)  it is not cost effective for the Commonwealth to take action to
        recover the debt. Date of effect of decision

"(6) A decision under subsection (1) takes effect:

   (a)  if no day is specified in the decision-on the day on which the
        decision is made; or

   (b)  if a day is specified in the decision-on the day so specified (whether
        that day is before, after or on the day on which the decision is
        made). Note: If the Secretary waives the Commonwealth's right to
        recover, this is a permanent bar to recovery of the debt-the debt
        effectively ceases to exist. Secretary must waive part of a debt

"1237A.(1) The Secretary may, on behalf of the Commonwealth, decide to waive
the Commonwealth's right to recover a part of a debt from a person but only in
accordance with this section. Settlement of civil action

"(2) If the Commonwealth has agreed to settle a civil action against the
person for recovery of the debt for less than the full amount of the debt, the
Secretary must waive the difference between the debt and the amount that is
the subject of the settlement. Recovery of part of debt in full satisfaction
for whole of debt

"(3) If:

   (a)  the Commonwealth has recovered at least 80% of the original value of
        the debt from the person; and

   (b)  the Commonwealth and the person agree that the recovery is in full
        satisfaction for the whole of the debt; and

   (c)  the person does not have the capacity to repay a greater proportion of
        the debt; the Secretary must waive the remaining 20% or less of the
        value of the original debt. No claim made for family payment or family
        allowance

"(4) If:

   (a)  a debt arises from overpayments made to the person; and

   (b)  the person or the person's partner does not claim family payment or
        family allowance during the period when the overpayments were made;
        and

   (c)  an amount of family payment or family allowance would have been
        payable during the period when the overpayments were made if the
        person or the person's partner had lodged a claim; the Secretary must
        waive the debt to the extent set out in subsection (5). Amount of debt
        Secretary must waive

"(5) The amount of debt the Secretary must waive under subsection (4) is equal
to the amount of family payment or family allowance which would have been
payable in the 3 year period ending on the day the overpayment is stopped if:

   (a)  the overpayments had not been made to the person; and

   (b)  the person or the person's partner had lodged a claim for the payment.
        Reference to amount of family payment or family allowance is a
        reference to basic rate of payment or allowance only

"(6) For the purposes of subsection (5), an amount of family payment does not
include multiple birth allowance, additional family payment or rent
assistance. And an amount of family allowance does not include multiple birth
allowance. Date of effect of decision

"(7) A decision of the Secretary under subsection (1) takes effect:

   (a)  if no day is specified in the decision-on the day on which the
        decision is made; or

   (b)  if a day is specified in the decision-on the day so specified (whether
        that day is before, after or on the day on which the decision is
        made). Note: If the Secretary waives the Commonwealth's right to
        recover, this is a permanent bar to recovery of part of the debt-the
        waived part of the debt effectively ceases to exist.".