Document ID: chunk:federal_register_of_legislation:C2004A04993:body:0:p16
Version: federal_register_of_legislation:C2004A04993
Segment Type: other
Provision Reference: 
Character Range: 38523–41056

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 offence that gave rise to a proportion of a debt; and

    (b) the court indicated in sentencing the debtor that it imposed a longer custodial sentence on the debtor because he or she was unable or unwilling to pay the debt;

the Secretary must waive the right to recover the proportion of the debt that arose in connection with the offence.

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

Waiver of small debt

"1237AAA.(1) The Secretary must waive the right to recover a debt if:

(a) the debt is, or is likely to be, less than $200; and

(b) it is not cost effective for the Commonwealth to take action to recover the debt.

"(2) Subsection (1) does not apply if the debt is at least $50 and could be recovered by deductions under section 1231 from a social security payment of the debtor.

SCHEDULE 3—continued

Waiver in relation to settlements

Settlement of civil action

"1237AAB.(1) If the Commonwealth has agreed to settle a civil action against a debtor for recovery of a debt for less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.

Settlement of proceedings before the AAT

"(2) If the Secretary has agreed to settle proceedings before the AAT relating to recovery of a debt on the basis that the debtor will pay less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.

Waiver where at least 80% of debt recovered and debtor cannot pay more

"(3) If:

    (a) the Commonwealth has recovered at least 80% of the original value of a debt from a debtor; and

    (b) the Commonwealth and the debtor agree that the recovery is in full satisfaction for the whole of the debt; and

    (c) the debtor cannot repay a greater proportion of the debt;

the Secretary must waive the remaining 20% or less of the value of the original debt.

Agreement for part-payment in satisfaction of outstanding debt

"(4) If the Secretary and a debtor agree that the debtor's debt will be fully satisfied if the debtor pays the Commonwealth an agreed amount less than the amount of the debt outstanding at the time of the agreement (the unpaid