Commonwealth Reciprocal Recovery Legislation Amendment Act 1994

Legislation au C2004A04744 Not in force Act

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Commonwealth Reciprocal Recovery
Legislation Amendment Act 1994

No. 68 of 1994

 

An Act to amend the Social Security Act 1991, the Student
Assistance Act 1973 and the Veterans’ Entitlements Act 1986
in relation to recovery of amounts by the Commonwealth

[Assented to 30 May 1994]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Commonwealth Reciprocal Recovery Legislation Amendment Act 1994.

Commencement

2.(1) Parts 1 and 3, other than paragraph 7(b), commence on the day on which this Act receives the Royal Assent.


(2) Part 2, paragraph 7(b) and Part 4 commence on 1 July 1994, immediately after the commencement of section 8 of the Social Security Legislation Amendment Act 1994.

 

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Principal Act

3. In this Part, “Principal Act” means the Social Security Act 19911.

General effect of Chapter

4. Section 1222 of the Principal Act is amended:

(a) by inserting after paragraph (1)(c) the following word and paragraph:

“; and (ca) debts incurred under other Acts for failing to repay part or all of overpayments referred to in paragraph (c);”;

(b) by omitting subsection (3) (but not the Note) and substituting the following subsection:

“(3) If a person:

(a) has received an overpayment under certain other Acts or schemes; or

(b) has incurred a debt under another Act (whether before or after the commencement of this paragraph) for failing to repay part or all of such an overpayment;

the amount of the overpayment or debt may be recoverable by means of deductions from the person’s social security payment.”.

Deductions from debtor’s pension, benefit or allowance

5. Section 1231 of the Principal Act is amended by omitting paragraph (1)(b) and substituting the following paragraphs:

“(b) an overpayment arising under an Act or scheme referred to in subsection 1228(2); or

(ba) a debt incurred under another Act (whether before or after the commencement of this paragraph) for failing to repay part or all of an overpayment referred to in paragraph (b);”.

 

PART 3—AMENDMENTS OF THE STUDENT ASSISTANCE ACT 1973

Principal Act

6. In this Part, “Principal Act” means the Student Assistance Act 19732.


Interpretation

7. Section 3 of the Principal Act is amended:

(a) by inserting “as currently or previously in force” after “provisions” in the definition of “late payment charge” in subsection (1);

(b) by inserting “or 1229A” after “1229” in paragraph (ba) of the definition of “late payment charge” in subsection (1);

(c) by omitting sub-subparagraph (aa)(ii)(B) of the definition of “Social Security or Veterans’ legislation overpayment” in subsection (1).

 

PART 4—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Principal Act

8. In this Part, “Principal Act” means the Veterans’ Entitlements Act 19863.

Service pension to be absolutely inalienable

9. Section 58G of the Principal Act is amended:

(a) by omitting from subsection (2) “205(2)(c)” and substituting “205(2)(e)”;

(b) by omitting from the Note “205(2)(c)” and substituting “205(2)(e)”.

Attendant allowance

10. Section 98 of the Principal Act is amended by adding at the end of subparagraph (4A)(b)(ii) “and debts” after “overpayments”.

Recovery of overpayments

11. Section 205 of the Principal Act is amended:

(a) by adding at the end of paragraph (1)(a) “or”;

(b) by adding at the end of paragraph (1)(b) “or”;

(c) by adding at the end of subsection (1) the following word and paragraphs:

“; or (e) a person has incurred a debt under another Act (whether before or after the commencement of this paragraph) for failing to repay part or all of an amount that has been paid as described in paragraph (b); or

(f) a person has incurred a debt under the Social Security Act 1991 (whether before or after the commencement of this paragraph) for failing to repay part or all of an amount that has been paid as described in paragraph (c) or (d).”;


(d) by omitting subsection (2) and substituting the following subsection:

“(2) If:

(a) an amount (‘overpayment’) has been paid as described in paragraph (1)(a), (b), (c) or (d) to a person; or

(b) a person has incurred a debt as described in paragraph (1)(e) or(f);

an amount not exceeding the amount of the overpayment or debt may (whether or not proceedings have been instituted in a court to recover the overpayment or debt) be recovered by deductions:

(c) from a pension, allowance or pecuniary benefit payable to that person under this Act; or

(d) from any amount that, because of the person’s death is to be dealt with in accordance with sections 123A to 123E (inclusive); or

(e) with the consent of another person, from any pension, allowance or other pecuniary benefit payable to that other person under this Act;

but the total amount recovered, whether by deduction or by proceedings in a court or both, is not to exceed the amount of the overpayment or debt.”;

(e) by adding at the end of the definition of “excluded amount” in subsection (8) the following word and paragraph:

“or (c) a recoverable amount arising because of a debt incurred as mentioned in paragraph (1)(e) or (f);”;

(f) by adding at the end of paragraph (a) of the definition of “recoverable amount” in subsection (8) “or”;

(g) by adding at the end of the definition of “recoverable amount” in subsection (8) the following word and paragraph:

“; or (d) if a debt of a kind referred to in paragraph (1)(e) or (f) has been incurred by a person—an amount equal to the amount of the debt.”.


NOTES

Social Security Act 1991

1. No. 46, 1991, as amended. For previous amendments, see Nos. 68, 69, 70, 73, 74, 115, 116, 141, 175, 194 and 208, 1991; Nos. 12, 69, 81, 94, 118, 133, 134, 138, 228, 229, 230, 233 and 241, 1992; and Nos. 25, 36, 61, 120 and 121, 1993; and No. 55, 1994.

Student Assistance Act 1973

2. No. 155, 1973, as amended. For previous amendments, see No. 26, 1982; Nos. 63, 72, 120 and 165, 1984; No. 137, 1985; No. 114, 1986; Nos. 125, 130 and 141, 1987; No. 35, 1988; Nos. 76 and 171, 1989; Nos. 70, 95 and 147, 1991; and No. 138, 1992.

Veterans’ Entitlements Act 1986

3. No. 27, 1986, as amended. For previous amendments see, No. 106, 1986 (as amended by Nos. 78 and 130, 1987); No. 130, 1986; No. 78, 1987 (as amended by No. 164, 1989); No. 88, 1987; No. 130, 1987 (as amended by No. 133, 1988); No. 13, 1988 (as amended by No. 83, 1989; and No. 73, 1991); Nos. 35 and 79, 1988; No. 134, 1988 (as amended by No. 164, 1989); No. 135, 1988 (as amended by Nos. 84 and 164, 1989; and No. 73, 1991); Nos. 59, 83, 84, 93 and 163, 1989; No. 164, 1989 (as amended by No. 56, 1990; and No. 73, 1991); Nos. 59, 83, 84, 93, 163, 1989; No. 164, 1989 (as amended by No. 56, 1990; and No. 73, 1991); Nos. 56, 84 and 119, 1990; No. 2, 1991 (as amended by No. 73, 1991); No. 72, 1991; No. 73, 1991 (as amended by No. 74, 1991); Nos. 74, 122, 175 and 208, 1991; Nos. 12, 51, 70, 94 and 228, 1992; and Nos. 27, 36 and 121, 1993.

[Minister’s second reading speech made in—

House of Representatives on 5 May 1994

Senate on 9 May 1994]

Overview

The Commonwealth Reciprocal Recovery Legislation Amendment Act 1994 was enacted by the Parliament of Australia to address the issue of the recovery of debts incurred under various Commonwealth Acts. The Act amends the Social Security Act 1991, the Student Assistance Act 1973, and the Veterans’ Entitlements Act 1986, enabling the Commonwealth to recover overpayments and associated debts through deductions from pensions, allowances, or benefits payable to the debtor under these Acts. This legislative amendment was designed to streamline and enhance the recovery process, ensuring that the Commonwealth could more effectively recoup funds lost due to overpayments. The policy objective behind this Act is to provide a more efficient mechanism for debt recovery, thereby reducing the financial burden on the Commonwealth and ensuring the integrity of social security, student assistance, and veterans' entitlements systems.

Scope and Application

The Commonwealth Reciprocal Recovery Legislation Amendment Act 1994 applies to individuals who have received overpayments under certain Acts or schemes and have incurred debts for failing to repay those overpayments. It primarily amends the Social Security Act 1991, the Student Assistance Act 1973, and the Veterans’ Entitlements Act 1986 to facilitate the recovery of these debts. The Act allows for the recovery of debts through deductions from social security payments, student assistance payments, and veterans’ pensions or allowances. This legislation has a national reach as it is enacted by the Commonwealth of Australia and applies across all states and territories. The amendments to these Acts mean that debts arising from overpayments under specified Acts can be recovered by deductions from payments under the amended Acts, ensuring that the total amount recovered does not exceed the amount of the overpayment or debt. The Act does not specify any exclusions or exemptions, but it does allow for the possibility of recovering debts through proceedings in a court, provided that the total amount recovered does not exceed the amount of the overpayment or debt.

Key Provisions

The Commonwealth Reciprocal Recovery Legislation Amendment Act 1994 (C2004A04744) introduces several significant amendments to the Social Security Act 1991, the Student Assistance Act 1973, and the Veterans’ Entitlements Act 1986. The Act facilitates the recovery of debts and overpayments by the Commonwealth through deductions from social security payments, student assistance, and veterans' pensions or benefits. Section 1222 of the Social Security Act 1991 is amended to include debts incurred for failing to repay overpayments under other Acts or schemes as recoverable amounts. Similarly, Section 1231 of the Social Security Act 1991 is revised to allow for deductions from social security payments for debts incurred under other Acts related to overpayments. The Act imposes obligations on debtors who have received overpayments or incurred debts under specified Acts to allow the Commonwealth to recover these amounts through deductions from their social security payments, student assistance, or veterans' benefits. These obligations include ensuring that the total amount recovered does not exceed the amount of the overpayment or debt. For example, under Section 205 of the Veterans’ Entitlements Act 1986, the Commonwealth can recover overpayments or debts from pensions, allowances, or pecuniary benefits payable to the debtor or, with consent, from another person's benefits. The Act also establishes potential consequences for non-compliance. While the Act does not explicitly list criminal offences, it allows for the recovery of overpayments and debts through deductions, which can be seen as a form of enforcement. Failure to comply with these provisions could lead to legal proceedings to enforce the recovery of the specified amounts. Additionally, the Act's amendments to the definition of "recoverable amount" in Section 8 of the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 provide clarity on what can be recovered and how, ensuring that the total amount recovered does not exceed the debt or overpayment. Although the Act does not specify maximum penalties for non-compliance, the authority to recover amounts through deductions serves as a significant deterrent.

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Social Security Law
Veterans’ Law
Education Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Enforcement Powers
Compliance Obligations
Reporting & Disclosure Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.