(1) Subject to subsection (2), each of the following:
(a) a debt under this Act as in force immediately before 20 March 2000;
(aaa) a debt under the social security law;
(b) an overpayment arising under an Act or scheme referred to in subsection 1228(2);
(ba) a debt incurred under another Act (whether before or after the commencement of this paragraph) for failing to repay part or all of an overpayment referred to in paragraph (b);
(bb) a debt described in subsection 1228(2A) or (2B);
(bc) an overpayment described in subsection 1228(3);
(c) a debt under subsection 11(6) of the Data - matching Program (Assistance and Tax) Act 1990 ;
(d) a debt or overpayment under the 1947 Act;
may be recovered by making deductions of amounts determined under subsection (1A):
(e) from any social security payments; or
(f) from any payments of arrears of social security payments; or
(g) partly from any social security payments and partly from any payments of arrears of social security payments.
(1A) The Secretary is to determine the amount of a deduction that is to be made from a particular payment, and may determine an amount that would reduce the payment to nil if:
(a) the deduction is to be made from a social security payment that is pension bonus or from a payment of arrears of social security payments; or
(b) the deduction is to be made from a social security payment that is not pension bonus and the person to whom the payment would, apart from the deduction, be made has consented to the amount of the deduction being an amount that would reduce the payment to nil.
(1AA) However, the Secretary:
(a) must not make a determination that would reduce a payment to nil if the reduction to nil would result in the person being in severe financial hardship; and
(b) must not make a determination that would reduce (including reduce to nil) an economic security strategy payment, essential medical equipment payment or training and learning bonus, unless the person to whom the payment or bonus:
(i) is to be made; or
(ii) would, apart from the deduction, be made;
has requested that the Secretary determine under this section the amount of a deduction that is to be made from the payment or bonus; and
(c) must not make a determination that would reduce (including reduce to nil) a payment of a student start - up loan.
(1B) If the person concerned elects in writing that this subsection is to apply in relation to him or her, the Secretary may decide under subsection (1A) that the amount by which each payment of the person's social security payment is to be reduced is such amount as results in reducing the payment to nil.
(2) The debt or overpayment must be deducted unless:
(a) the Secretary takes action under Part 5.4 (write off and waiver) in relation to the amount; or
(b) the amount is recovered by the Commonwealth under:
(i) another provision of this Chapter; or
(ii) Part 4 of the A New Tax System (Family Assistance) (Administration) Act 1999 .