'Class of debt' waivers for national disasters between 2009 and 2011 107-05120050

The Secretary may waive debts arising under or as a result of the Social Security Act if they are included in a class of debts which has been specified by the Minister by legislative instrument.

Consider a class of debt waiver for customers adversely affected by:

• Severe damage to the customer's normal place of residence or serious injury attributable to the 2009 Victorian Bushfires - 29 January to 29 April 2009 inclusive
• Heavy rainfall, storm damage and associated flooding in Queensland that began in November 2010 and continued into January 2011
• Flooding in NSW determined to be a major disaster on 14 January 2011
• Flooding in Victoria determined to be a major disaster on 19 January 2011
• Severe weather, storm surges and flooding in Queensland that resulted from Tropical Cyclone Yasi
• A debt waiver may be granted for customers adversely affected by the late 2010 - early 2011 flooding or Cyclone Yasi

Consider all relevant waiver provisions if:

• a customer (or their advocate) requests it, or
• other factors indicate a waiver may apply

Look at the standard waiver provisions before 'class of debt' waivers. See links to Disallowable Instruments on the References page.

Waiver of a debt impacts the recovery fee and interest charge applied.

Note: the following are not eligible for waiver under this provision:

• Australian Government Disaster Recovery Payment (AGDRP) debts
• Public Governance, Performance and Accountability Act 2013 (PGPA) debts, including NZ Ex Gratia Assistance, Wage Assistance and Disaster Income Recovery Subsidy debts and
• Student Assistance Act debts

The PGPA replaced the Financial Management and Accountability Act 1997 (FMA) from 1 July 2014.

This debt waiver only applies to Social Security Act and Family Assistance Act payments administered by the Department of Social Services.

Where a decision is made to waive a debt or part of a debt that includes the 10% recovery fee:

• remove the fee, and
• recalculate the fee if only part of the debt is waived

See Effect of waiving a debt on the recovery fee.

The same waiver reasons and provisions that exist for debts, also apply for interest.

Debt Management Information System (DMIS) will refund the customer where an Interest Charge (IC) is subsequently waived or adjusted. Under existing legislation, the IC is also a debt. Manage recovery and over-recovery in the same way as existing over-recovered debts.

For more information, see Transfers and refunds.

If a finalised fully recovered (FRC) debt requires a waiver, Debt Staff must adjust the repayment history before coding the waiver.