Administrative error waivers 107-05120010

Waiving a debt is different from determining that a debt should be FND:

• waiving a debt means that although there is a legally recoverable debt, Services Australia will not recover that debt
• an FND determination means that there was no debt, or that the excess payment is not legally recoverable

This is one debt waiver provision to consider. Test all waiver provisions that apply to the customer's circumstances.

A decision to waive or not waive a debt can be made:

• before or after determining the debt
• before, during or after debt recovery
• if a customer (or their nominee) asks for one
• on referral or recommendation from a staff member unable to action debts

A debt may be waived partially or in full. A debt can occur at any time during a payment period. Only part of the debt may be subject to waiver. For the purpose of waiving some of a debt, administrative error must be the only cause of that part of the debt.

A debt waiver also applies to the Recovery Fee and interest charge applied to the debt.

Social Security Act 1991 or Student assistance Act 1973

For a waiver to apply, all of the following criteria must apply, the:

• payment causing the debt was due solely to administrative error
• customer received the money in good faith, and
• debt is not raised within 6 weeks from the later of:
  • the date the first incorrect payment was delivered to the customer, or
  • from the end of the relevant notification period if the customer met their notification obligations

Family Assistance (Administration) Act 1999 debts

For a waiver to apply, all of the following criteria must apply, the:

• payment causing the debt was due solely to administrative error
• customer received the payment in good faith and recovery of the debt would cause the customer severe financial hardship, or
• customer received the payment in good faith and the debt has been raised after the later of:
  • the end of the next financial year following the one that included the eligibility period or event, or
  • 13 weeks from the day of the payment

Paid Parental Leave Act 2010 debts

For a waiver to apply, all of the following criteria must apply, the:

• payment causing the debt is due solely to administrative error, and
• debtor received the payment(s) in good faith, and
• debtor would suffer severe financial hardship if it were not waived.

Receiving a payment in good faith means the customer did not know or had no reason to know the payment or the rate was incorrect.

The decision of whether the customer received the payment in good faith must be based on the customer's state of mind at relevant times, based on the best evidence available. It is essential that staff consider all circumstances of a case.

The Debt Assist workflow:

• can only be used to waive undetermined debts in full
• cannot be used for Child Care Subsidy (CCS) debts

For partial waivers or determined debts, use the Debt Action and Debt Recovery scripts in Customer First/Customer Record.

Delegated Authority

Delegations are based on the debt balance to be waived. Employees who have delegated powers:

• are responsible for those powers
• are accountable for the decisions they make
• must check the Act that the decision is being made under

See Centrelink Services, Delegations and Authorisations for the appropriate debt waiver delegation levels and Delegations of managing debt.