Waiver if there was an unclaimed entitlement to family payment or family allowance
(1) If:
(a) a debt arises from overpayments made to the debtor; and
(b) the debtor or the debtor's partner does not claim family payment or family allowance for the period when the overpayments were made; and
(c) an amount of family payment or family allowance would have been payable for the period when the overpayments were made if the debtor or the debtor's partner had lodged a claim;
the Secretary must waive the right to recover the debt to the extent set out in subsection (2).
(1A) If:
(a) a debt arises from overpayments to a youth allowance recipient (the debtor ); and
(b) the debtor would have been an FA child of another person for the period when the overpayments were made if the debtor had not been a youth allowance recipient; and
(c) an amount of family allowance would have been payable to the other person in respect of the debtor for the period when the overpayments were made if:
(i) the debtor had been an FA child of the other person for that period; and
(ii) the other person had lodged a claim;
the Secretary must waive the debt to the extent set out in subsection (2A).
Amount of debt Secretary must waive
(2) The Secretary must waive under subsection (1) the right to recover the amount of debt equal to the amount of family payment or family allowance that would have been payable to the debtor or the debtor's partner in the 3 - year period ending on the day the overpayment is stopped if:
(a) the overpayments had not been made to the debtor; and
(b) the debtor or the debtor's partner had lodged a claim for the payment.
(2A) The Secretary must waive under subsection (1A) the right to recover the amount of debt equal to the amount of family allowance that would have been payable to the other person in the 3 - year period ending on the day on which the overpayment is stopped if:
(a) the debtor had been an FA child of the person; and
(b) the other person had lodged a claim for family allowance.
Reference to amount of family allowance is a reference to minimum rate plus guardian allowance and large family supplement
(3) For the purposes of subsections (2) and (2A):
(a) an amount of family allowance is the minimum standard family allowance rate plus any guardian allowance that is payable plus any large family supplement that is payable; and
(b) an amount of family allowance does not include multiple birth allowance.
Waiver if there was an unclaimed entitlement to parenting allowance or parenting payment
(4) If:
(a) a debt arises from overpayments to the debtor; and
(b) the Secretary is satisfied that the overpayments did not result wholly or partly from the debtor or another person knowingly:
(i) making a false statement or false representation; or
(ii) failing or omitting to comply with a provision of this Act or the 1947 Act; and
(c) the debtor or the debtor's partner did not claim parenting allowance or parenting payment for the period (the overpayment period ) when the overpayments were made; and
(d) an amount of parenting allowance or parenting payment would have been payable for that period if the debtor or the debtor's partner had lodged a claim;
the Secretary must waive the right to recover the debt to the extent set out in subsection (5).
Waiver of amount equal to notional entitlement to parenting allowance or parenting payment (as the case requires)
(5) The Secretary must waive under subsection (4) the right to recover the amount of debt equal to the amount of parenting allowance or parenting payment (as the case requires) that would have been payable to the debtor or the debtor's partner during so much of the overpayment period as was not earlier than 3 years before the day on which the overpayment is stopped if:
(a) the overpayments had not been made to the debtor; and
(b) the debtor or the debtor's partner had lodged a claim for the allowance or payment (as the case requires).
Calculating the amount equal to notional entitlement to parenting allowance
(6) For the purposes of working out the amount of parenting allowance or parenting payment that would have been payable to the debtor or the debtor's partner, the rate of parenting allowance or parenting payment for the debtor or the debtor's partner:
(a) if the Secretary is satisfied that the rate would have been greater than the maximum basic component if parenting allowance or parenting payment had been claimed--is taken to have been that greater rate; or
(b) in any other case--is taken not to have exceeded the maximum basic component of parenting allowance specified at the relevant time in the Parenting Allowance Rate Calculator or the PP (Partnered) Rate Calculator (as the case requires).