What powers does Centrelink have to recover a debt?

Centrelink has a wide range of powers to recover social security debts, including the power to:

Is there a limitation period in which Centrelink must take action for a debt?

Since 1 January 2017 there has been no time limit on Centrelink recovering a debt [see Social Security Act 1991 (Cth) s 1234B; similar provisions are contained in other relevant legislation]. Previously Centrelink had 6 years from the date that they ought to have been reasonably aware of the debt to take recovery action.

What happens if a person becomes bankrupt?

If a person with a Centrelink debt becomes bankrupt, Centrelink cannot use its garnishee power or commence a court action for debt. The position in respect of deductions from social security payments is less clear. Advisors and people owing money should seek advice if this situation arises. Bankruptcy does not extinguish debts which arose through fraud.

How is a person notified of a Centrelink debt?

Centrelink must give a person written notice containing specific information relating to the debt. That notice must include information relating to:

See Social Security Act 1991 (Cth) s 1229.