Debts resulting from internal transfers and clearances 107-02020010

This document outlines information regarding debts which may arise when a customer's Centrelink payment type changes, or from transfer between Commonwealth departments or agencies.

Benefit transfers

Benefit transfers occur when:

customers transfer between payments (including payments made by other Commonwealth departments or agencies)
the partner of a benefit, allowance or pension customer commences receiving a payment in their own right
benefit, allowance or pension customers commence living together as a couple

A debt occurs, as specified in section 90 of the Social Security (Administration) Act 1999 when:

a customer's original payment continues beyond the automatic termination date following a transfer to another payment

Department of Veterans' Affairs (DVA)

Many pensioners receive payments from DVA. Transfers from Centrelink payments to DVA payments come under:

the automatic termination provision in section 90 and
the multiple entitlement exclusion provisions in section 47(1) and 47(3) of the Social Security (Administration) Act 1999

The transfer will result in a recoverable social security debt.

Note: this procedure is not to be used in the following cases:

for assessments that do not involve a transfer
to record an adjustment to arrears for benefit transfers from one payment type to another in the same system

The Resources page contains information on automatic termination debts and clearances between Centrelink and the DVA.

Operational Information

Debts resulting from internal transfers and clearances 107-02020010

Benefit transfers

Department of Veterans' Affairs (DVA)

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