Actioning third party debts 107-04010100

If a third party receives a payment they are not entitled to, they are responsible for repaying this amount. This includes when Centrelink payment/s have been incorrectly paid to a third party's account, including a joint account.

If attempts to request a refund from the financial institution have not been successful in recalling payment/s made to an incorrect bank account or recipient, at the end of the 28 day review period the system will generate a debt on the customer’s record.

Investigation of the debt is required to confirm who received the funds, which will determine the liable party/parties for raising the debt.

If the agency pays Paid Parental Leave (PPL) funds intended for an employer into an incorrect account, see Delivery of Parental Leave Pay (PPL).

See the Resources page for Debt and Compensation (DCP) Branch and Payment Assurance Operations (PAO) contact details.

If the customer’s payment destination has been updated without their consent, this may be an indicator of fraud. See Identity fraud.

No action is required from the agency if money is sent to the customer’s correct account but was later withdrawn/transferred by a third party without authority. This needs to be pursued by the estate. See Requesting refunds and raising debts for deceased customer.

CCS request for refunds are completed manually. See Reissue a payment or cheque at a customer's request.