Debts where more than one person is liable for recovery 107-04020140

Payment responsibility for debts raised under the Social Security Act generally belongs to the customer who received the excess payment. This occurs even if another person encouraged or gained a benefit from the fraud.

However, for debts incurred on or after 1 January 1994, the customer and the other person are jointly and severally liable to repay the debt if:

• a person is liable to repay a debt under the Social Security Law, and
• another person is convicted of an offence in relation to that debt under sections 5, 7A or 86 of the Crimes Act 1914

Raise these debts under section 1224AB of the Social Security Act 1991.

When investigating these debts, be aware:

• prosecution is possible
• the Director of Public Prosecutions decides whether or not to prosecute
• any evidence gathered may assist in convicting a person involved in an offence
• if the court has made an order dividing the total debt between the parties. For example:
• Person A to repay $X, and
• Person B to repay $Y, once Person B's portion of the debt is paid (regardless of who pays it), Person B's liability ends

A co-debtor is a person involved in the primary debtor's action of committing an offence against the Social Security Act 1991, to obtain money. This is when both people are:

• convicted of the offence/s committed, and
• liable to repay all or part of the account, as directed by the judge

The primary debtor is the customer against whom the account was first raised. The co-debtor's account is a mirror image of the primary debtor's account.