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An arrangement may be made with the debtor to recover a FA debt (1.1.D.60) by cash instalments. This is also known as a cash arrangement.
Wherever possible, recovery of FAO reconciliation debt is undertaken through withholdings from FTB instalments or arrears. A cash repayment arrangement may be entered into in addition to withholdings, but should not be the only recovery method if withholding from FTB is an available option.
The following table outlines the acceptable cash repayment level for those who make a cash repayment arrangement.
|
Balance of overpayments |
Amount per fortnight |
|
Up to $750 |
$30 |
|
$750 - $1,500 |
$60 |
|
Over $1,500 |
Any amount that repays the overpayment within 12 months. |
The amount of the instalments is determined by FAO in consultation with the recipient, taking into account the amount of debt and person's circumstances. An instalment can be one payment, if the debtor has the means to repay the debt, or an agreed number of instalments that will enable full recovery at the earliest time possible.
Act reference: FA(Admin)Act section 91 Arrangements for payment of debt by instalments
Policy reference: FA Guide 7.2.2 Debt Recovery by Deduction
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Last reviewed: 3 January 2012
