Debts and nominees 107-02050040

Customers with a nominee must advise of any circumstance changes within their notification period.

If a nominee fails to advise a change in circumstances, which results in an incorrect payment:

• this error is taken to have been made by the customer, and
• any debts must be raised against the customer

See Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable.

Nominee arrangements cease on the date of death of the customer. Action payments made to former payment nominees after a customer’s date of death as an incorrect payment to a third party.

For incorrect payments made to a third party, see Actioning third party debts.

Raise the debt on the nominee as a third party debt where there is evidence:

• to support an incorrectly appointed nominee and
• they received the benefit of the funds

See Calculating Centrelink entitlements and gathering information when investigating debts.

Social Security Law and Family Assistance Law set out obligations for both correspondence and payment nominees. Nominees must act in the customer's best interests.

Nominee arrangements are subject to review. The agency's power to investigate has limits. The Australian Federal Police (AFP) may need to investigate.

Raise a third party debt when a court has determined that the nominee has:

• stolen
• fraudulently used, or
• misappropriated the customer's money

Refer these types of investigations to the AFP by the Intelligence and Investigations Branch.