Document ID: chunk:federal_register_of_legislation:C2004A04993:body:0:p15
Version: federal_register_of_legislation:C2004A04993
Segment Type: other
Provision Reference: 
Character Range: 36086–38746

Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO WAIVER OF DEBTS

1. Section 1236A:

Repeal the section, substitute:

Application

"1236A.(1) Sections 1237, 1237A, 1237AA, 1237AAA, 1237AAB, 1237AAC and 1237AAD apply to:

(a) debts arising on or after 1 January 1996; and

(b) the amounts of debts arising before 1 January 1996 that were outstanding at the start of that day.

"(2) Section 1237AB applies to all debts, whenever incurred, owed to the Commonwealth and arising under this Act or under the Social Security Act 1947.".

2. Sections 1237 and 1237A:

Repeal the sections, substitute:

Power to waive Commonwealth's right to recover debt

Secretary's limited power to waive

"1237.(1) On behalf of the Commonwealth, the Secretary may waive the Commonwealth's right to recover the whole or a part of a debt from a debtor only in the circumstances described in section 1237A, 1237AA, 1237AAA, 1237AAB, 1237AAC or 1237AAD.

When waiver takes effect

"(2) A waiver takes effect:

    (a) on the day specified in the waiver (whether that day is before, after or on the day on which the decision to waive is made); or

    (b) if the waiver does not specify when it takes effect—on the day on which the decision to waive is made.

    Note: If the Secretary waives the Commonwealth's right to recover all or part of a debt, this is a permanent bar to recovery of the debt or part of the debt—the debt or part of the debt effectively ceases to exist.

Waiver of debt arising from error

Administrative error

"1237A.(1) The Secretary must waive the right to recover the proportion of a debt that is attributable solely to an administrative error made by the Commonwealth if the debtor received in good faith the payment or payments that gave rise to that proportion of the debt.

SCHEDULE 3—continued

   Note: Subsection (1) does not allow waiver of a part of a debt that was caused partly by administrative error and partly by one or more other factors (such as error by the debtor).

Underestimating value of property

"(2) If:

    (a) a debt arose because the debtor or the debtor's partner underestimated the value of particular property of the debtor or partner; and

    (b) the estimate was made in good faith; and

    (c) the value of the property was not able to be easily determined when the estimate was made;

the Secretary must waive the right to recover the proportion of the debt attributable to the underestimate.

Proportion of a debt

"(3) For the purposes of this section, a proportion of a debt may be 100% of the debt.

Waiver of debt relating to an offence

"1237AA.(1) If:

    (a) a debtor has been convicted of an