You can repay money for a Centrelink debt in full or set up a payment arrangement. We may recover money in other ways as well.
They have 12 years to recover the principal amount borrowed, but only 6 years to claim interest – from when court action started.
If you're not repaying your debt at a suitable rate, we may issue a Departure Prohibition Order. It'll stop you from leaving Australia until you either: pay your debt in full. enter into an acceptable payment arrangement.
Your debt may be waived where you have “special circumstances” and your debt did not occur because you or another person “knowingly” made a false statement to Centrelink or knowingly failed to comply with Social Security law. that you or your family has suffered.
You can dispute the debt or ask for a waiver of the debt, and appeal to an independent tribunal if Centrelink will not change or remove the debt. However, there can be risks involved in appealing Centrelink debts. Centrelink may do more investigations and review the period of the debt and the amount of the debt.
Six Year Limitation Period
For most debts, a creditor must begin court action to recover the debt within six years of the date you: Last made a payment. Admitted in writing that you owe the money.
Your Centrelink debts won't affect your credit rating.
Bank interest reviews. We check your bank account information is up to date. We do this to check we paid you the right payment and amount in the past.
Don't worry – Centrelink can't remove funds from your bank account. However, they do have several means by which they can recover overpayments. They'll send you a letter with an Account Payable explaining how much you owe them and why. This letter will also outline when your payment is due and how you can pay it.
Centrelink can commence legal proceedings against you at any time, as there is no longer a statute of limitations. If a commonwealth charge carries a maximum penalty of 6 months or less jail or if there is no jail penalty, then there is a one year statute of limitations that applies.
We can ask them to garnishee your tax refund. This means they will withhold or give us some or all of your tax refund or available credit. If we do, we'll send you a letter to let you know.
It is important to note that you cannot garnish a judgment debtor's Centrelink benefits to enforce the repayment of a judgment debt. If a judgment debtor's only income is Centrelink benefits, you cannot use this option to enforce a debt.
There's no time limit for the creditor to enforce the order. If the court order was made more than 6 years ago, the creditor has to get court permission before they can use bailiffs.
If eligible, we may be able to backdate your subsidy for up to 28 days.
Community Legal Centres (CLCs)
An online CLC Recommendation Service is available. Answer some questions about your situation and you will be directed to a suitable CLC. Tip: select 'I have a problem with Centrelink' at question 1. You can also call LawAccess NSW on 1300 888 529 for help finding a CLC.
If you leave Australia to live in another country, your payment will stop when you depart. If your travel is short term, your payment will stop when you depart, unless you're travelling for an approved reason. To get Special Benefit while you're overseas, you must travel for an approved reason.
One common type of fraud is providing false information, such as a fake name or address, to obtain Centrelink payments. Another type is undeclared income, where individuals fail to declare all of their income to Centrelink to receive additional benefits.
If you have defrauded Centrelink, you may be charged under section 134.2 – obtaining a financial advantage by deception. If you are found guilty, the maximum penalty is 10 years imprisonment. You may instead, or also, receive a fine between $10,000 and $100,000 and be made to repay the benefit to Centrelink.
Legally, there is nothing stopping you from leaving the country if you have debt, unless the Australian Taxation Office (ATO) issues a Departure Prohibition Order (DPO) against you.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit scores may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
A debt is the difference between the amount you were paid by Centrelink and the amount you should have been paid in a particular period. Most debts are caused by a change in circumstances, for example a change in your income, assets or family arrangements.
Debt forgiveness is an agreement between a creditor and debtor to cancel the obligation of a debt without receiving any payment from the borrower. In Canada, many creditors will agree to write off your debt if you are unable to make your debt payments.
Debt forgiveness happens when a lender forgives either all or some of a borrower's outstanding balance on their loan or credit account. For a creditor to erase a portion of the debt or the entirety of debt owed, typically the borrower must qualify for a special program.