Recovery of Centrelink compensation debts 117-04000000

Compensation debts are either 'compensation payer debts' or 'customer debts'.

• Compensation payer debts are repaid directly to Services Australia in one lump sum
• For customer debts, the customer will negotiate the repayment of the debt with the Debt Recovery Team

The Compensation Recovery Team (CRT) are responsible for the recovery of compensation payer debts. Wherever possible, compensation payer debts should be recovered using the methods advised within the debt advice. If a compensation payer is required to repay the debt using Electronic Funds Transfer (EFT) they should be referred to the Debt Finance team - see Resources for contact requirements.

The CRT can take appropriate action if the debt is not fully repaid within 28 days.

There are special circumstances provisions in the Social Security Act 1991 that will allow Services Australia to reduce a compensation debt or preclusion period.

Legally recoverable compensation debts are subject to consideration for waiver. Test all waiver provisions that apply.

The waiver of a charge is dependent on the recoverable amount specified in the Recovery Notice under section 1184.

All compensation debt waiver decisions must be recorded in a DOC. See Minimum DOC standards for debt waivers.

Waivers, like any other decision, can be reviewed and changed.

Where a charge or an income debt has been recovered, the CRT will need to ensure the customer's Payment Summary is adjusted and sent to the customer.