7.16.1.1 — A debt is normally written off where it is not possible or cost effective to recover it. Write-off action may be taken where it is considered that action to recover an overpayment should stop without affecting the Commonwealth's right to recover at a later date. Write-off action should only be taken if all appropriate recovery action has been taken and recovery is not possible. The authority to write-off a debt arising under, or as a result of the VEA must be determined under paragraph 206(1) [2] VEA.
7.16.1.2 — Before an amount can be written off, the delegated officer must be satisfied on the following points:
7.16.1.3 — The circumstances in which a delegate may exercise the discretion to write-off the whole, or part, of a debt are as follows:
7.16.1.4 — Before an amount is written off, an acknowledgment of the debt should be obtained where possible.
7.16.1.5 — Unless a case is irrecoverable at law, the debtor's circumstances should be reviewed every 12 months, or more frequently as appropriate, in case the debtor's capacity to repay improves.
7.16.1.6 — A written off debt can be re-raised at any time where a debtor's capacity to repay improves. For example, when the debtor lodges a successful claim for income support or receives a lump sum from an estate, recovery action should commence. However, any such recovery action is constrained by the 6-year statute of limitations contained in subsection 206(2) [2] VEA.
Note:For more information refer to this manual's Section 7.3 Statute of Limitations at the beginning of this chapter.
7.16.1.7 — In certain cases where the departmental delegate for particular reasons has accepted a partial repayment and written off a portion of the debt because it is not possible or cost effective to pursue full repayment, the debtor may request a Deed of Release to be signed by both parties. The Deed of Release is a release from all liability and effectively prevents both parties from taking any further action in relation to the debt. The delegation to sign a Deed of Release is at the Director level.
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/24198%23comment-form
[2] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea