A New Tax System (Family Assistance) (Administration) Act 1999

PART 4 - OVERPAYMENTS AND DEBT RECOVERY  

Division 4 - Non-recovery of debts  

SECTION 97   Waiver of debt arising from error  

97(1)    
The Secretary must waive the right to recover the proportion (the administrative error proportion ) of a debt that is attributable solely to an administrative error made by the Commonwealth if subsection (2) or (3) applies to that proportion of the debt.

97(2)    
The Secretary must waive the administrative error proportion of a debt if:

(a) the debtor received in good faith the payment or payments that gave rise to the administrative error proportion of the debt; and

(b) the person would suffer severe financial hardship if it were not waived.

97(3)    
The Secretary must waive the administrative error proportion of a debt if:

(a) the payment or payments were made in respect of the debtor's eligibility for family assistance for a period or event (the eligibility period or event ) that occurs in an income year; and

(b) the debt is raised after the end of:

(i) the debtor's next income year after the one in which the eligibility period or event occurs; or

(ii) the period of 13 weeks starting on the day on which the payment that gave rise to the debt was made;

(c) the debtor received in good faith the payment or payments that gave rise to the administrative error proportion of the debt.

97(4)    
For the purposes of this section, the administrative error proportion of the debt may be 100% of the debt.