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Effect of bankruptcy on Financial Supplement Loan (FSL) prior to transfer to the Australian Taxation Office (ATO) 102-15010050

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The Student Financial Supplement Scheme (SFSS) closed from 1 January 2004. Since December 2005 all outstanding Financial Supplement Loans (FSL) have been transferred to the Australian Taxation Office (ATO) for recovery.

This page contains a table of information for Service Officers to use to assist customers with enquiries about the effect of bankruptcy on repayment of the Financial Supplement Loan (FSL).

FSL customers who declare bankruptcy

Step

Action

1

Customer declares bankruptcy + Read more ...

Advise the customer that as all loans have been transferred to the Australian Taxation Office (ATO) that they should visit the ATO website, see Effect of bankruptcy on Financial Supplement loan (FSL) after transfer to the Australian Taxation Office (ATO).

  • In relation to loans that were administered by Centrelink (now Services Australia) during the contract period:
  • Financial Supplement loan (FSL) remains repayable even if the customer is declared bankrupt

FSL debt cannot be reduced or discharged due to bankruptcy.

Note: for the purpose of FSL, the customer is not required to advise Services Australia that they are declared bankrupt.

2

Recording details + Read more ...

Record details of advice given on a DOC.