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Administrative error waivers 107-05120010

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This document outlines when to waive a debt or the relevant part of a debt because of administrative error.

Waiving a debt and finalised 'no debt' (FND)

Waiving a debt is different from determining that a debt should be FND:

  • waiving a debt means that although there is a legally recoverable debt, Services Australia will not recover that debt
  • an FND determination means that there was no debt, or that the excess payment is not legally recoverable

Considering a waiver

This is one debt waiver provision to consider. Test all waiver provisions that apply to the customer's circumstances.

A decision to waive or not waive a debt can be made:

A debt may be waived partially or in full. A debt can occur at any time during a payment period. Only part of the debt may be subject to waiver. For the purpose of waiving some of a debt, administrative error must be the only cause of that part of the debt.

A debt waiver also applies to the recovery fee and interest charge applied to the debt.

Waiver due to administrative error

For a waiver to apply, all of the following must apply:

  • the debt was due solely to administrative error
  • the customer received the money in good faith, and
  • the debt is not raised until 6 weeks after the first payment that caused the debt

Good faith

Receiving a payment in good faith means the customer did not know or had no reason to know the payment or the rate was incorrect.

The decision of whether the customer received the payment in good faith must be based on the customer's state of mind at relevant times, based on the best evidence available. It is essential that staff consider all circumstances of a case.

The Resources page contains links to forms and examples.

Waiving Centrelink debts

Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable

Investigating administrative or computer error debts for Social Security payments

Financial Circumstance assessment for debt recovery

Recovery Fee applied to debts resulting from incorrect declaration of income

Effect of waiving a debt on the recovery fee

Actioning an undetermined debt on the Debt Management and Information System (DMIS)

General Centrelink debt recovery information

Special circumstances debt waivers

General notification provisions and exceptions

Debt ownership