Permanent write off of Centrelink debts 107-05130020

For general write off information, see Writing off Centrelink debts, which includes:

• things to consider before writing off a debt, and
• write off definition

A permanent write off indicates that even though there is a legal debt, the debt is irrecoverable at law.

Only apply permanent write off in the following circumstances:

• there is insufficient proof of the debt for it to be recovered through legal proceedings
• the debtor is discharged from bankruptcy, and:
• the debt was incurred before the customer became bankrupt, and
• was not incurred by means of fraud
• the debtor has died leaving no estate or insufficient funds in the estate to repay the debt, or
• recovery action cannot take place because the debt meets the criteria for 6 year limitation write off

In certain circumstances, Services Australia can reverse a permanent write off. For example, restarting recovery of a debt if further funds come from the estate.

Note: this instruction also applies to Income Management Debts.

Some permanently written off family assistance reconciliation debts may still be subject to recovery by offsetting from family assistance lump sum payments and/or tax refunds.

The debt recovery script does not apply to debts managed within Process Direct. See Recovering Child Care Subsidy (CCS) debts in Process Direct.