Categories of debt raised under subsection 1223(1) 107-04020020

This document outlines information on when to raise a debt under subsection 1223(1) of the Social Security Act 1991.

Excess payment debt raising criteria

Subsection 1223(1) defines recoverable debt. Excess payment is a debt to the Commonwealth if a:

• social security payment is made, and
• person who obtains benefit of the payment was not entitled to that payment

This includes:

• received by an unauthorised third party, and
• incorrect payments as a result of a system or administrative error ('no-fault' debts)

A debt is recoverable when a person obtains benefit of the payment.

Notification rules

Creation of a new debt (the debt creation provisions) is subject to:

• notification rules
• qualification and
• payment requirements

In some cases, the notification rules may decide there is no basis for a debt. Example, customer receives an excess payment:

• due to a change in circumstances or event affecting their payment, and
• Services Australia did not inform the customer they needed to report their change in circumstances or event

No debt exists, as the customer was not advised to report the change to Services Australia.

Related links

Using the correct date of effect when raising debts

Create a new debt record manually on the Debt Management and Information System (DMIS)

Workload Management

Actioning an undetermined debt on the Debt Management and Information System (DMIS)

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

Administrative error waivers

Investigating administrative or computer error debts for Social Security payments

Storing scanned documents