Raising Pension Bonus Scheme (PBS) debts 107-04020180
This document outlines information about Pension Bonus Scheme (PBS) debts and when they can be recovered.
PBS payment
The Pension Bonus Scheme (PBS) provides a tax free lump sum bonus for customers who choose to work past Age Pension age. They must also defer from claiming an Age Pension.
The assessment of the Bonus is part of the claim for Age Pension. The amount of Pension Bonus Payment (PBP) payable depends on the rate of Age Pension at grant. See Section 93H of the Social Security Act 1991. The References page has a link.
PBS debts due to administrative error
Raise a PBS when:
- calculation of the Pension Bonus Payment (PBP) was incorrect at date of grant, and
- it was due to admin or computer error
Consider waiving the debt under the administrative error provisions.
PBS debts due to fraud or misrepresentation
Debts of PBP are recoverable when they result from:
- contravention of the social security law
- a false statement
- misrepresentation
Note: breach of social security law does not have to be intentional to raise the debt. The customer error may not have been deliberate.
Other excess Pension Bonus Payments
The PBP paid may be too high. For example, there is a grant of Age Pension, then some time later, there is a retrospective grant of a Comparable Foreign Payment.
If the PBP was not made due to error, fraud or misrepresentation, the excess payment is not a PBP debt because:
- the customer had entitlement to the PBP at the time of payment
- PBP payment is a one-off payment
There is no ongoing requirement on the customer to provide information relating to income and assets.
Finalise this type of excess PBP as no debt.
Pension Bonus Top-up
No negative Pension Bonus Top-up exits if a customer's rate of Age Pension:
- was correct at the date of grant, and
- reduced within 13 weeks of grant due to income or assets
The References page contains links to the Social Security Act 1991.
Related links
Non recovery of Centrelink debts, finalised 'no debt'
Finalised no debt (FND) or 'zeroing' debts that are not legally recoverable
Create a new debt record manually on the Debt Management and Information System (DMIS)
Qualification and assessment of Pension Bonus Payment (PBP)