{"id":"F2025L00454","name":"Social Security (Waiver of Debts – Legacy Product Conversions) Specification 2025","slug":"social-security-waiver-of-debts-legacy-product-conversions-specification-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442804,"registerId":"F2025L00454-fast-fetch-1775957738055","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Security (Waiver of Debts – Legacy Product Conversions) Specification 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-keywords: \"[SEC=OFFICIAL]\"\ntitle: DSS draft instrument - debt waiver\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nSocial Security (Waiver of Debts – Legacy Product Conversions) Specification 2025\n\nI, Amanda Rishworth, Minister for Social Services, make the following Specification.\n\nDated 26.03.2025       \n\nAmanda Rishworth\n\nMinister for Social Services\n\n \n\n \n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Classes of debts\n\n \n\n1  Name\n\n  This instrument is the Social Security (Waiver of Debts – Legacy Product Conversions) Specification 2025\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after the last day on which a resolution disallowing the Social Security (Waiver of Debts –Legacy Product Conversions) Specification 2025 or a provision of that instrument could be passed by either House of the Parliament as referred to in section 42 of the Legislation Act 2003. However, the provisions do not commence at all if that instrument or a provision of that instrument is disallowed or taken to have been disallowed on or before that last day.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under subsection 1237AB(1) of the Social Security Act 1991.\n\n4  Definitions\n\n  In this instrument:\n\nAct means the Social Security Act 1991.\n\nasset-test exempt income stream has the meanings given by sections 9A, 9B and 9BA of the Act.\n\n5  Classes of debts\n\n (1) For section 1237AB of the Act, a debt is in a specified class of debts if:\n\n1.     it is a debt due to the Commonwealth by a person under section 1223A of the Act; and\n2.     the debt did not arise because the person knowingly made a false or misleading statement, or knowingly provided false information to the Commonwealth; and\n3.     the debt arose because the whole of the asset-test exempt income stream was commuted in accordance with:\n  1.        regulation 1.08AA of the Retirement Savings Accounts Regulations 1997; or\n  2.      regulation 1.05AA of the Superannuation Industry (Supervision) Regulations 1994; or\n  3.    regulation 1.06C of the Superannuation Industry (Supervision) Regulations 1994.\n\n\n (2) For section 1237AB of the Act, a debt is in a specified class of debts if:\n\n1.     it is a debt due to the Commonwealth by a person under section 1223 of the Act; and\n2.     the debt did not arise because the person knowingly made a false or misleading statement, or knowingly provided false information to the Commonwealth; and\n3.     the debt arose because paragraph 9A(1)(c), paragraph 9B(1A)(c) or subparagraph 9BA(1)(a)(v) of the Act ceased to be satisfied in relation to an income stream; and\n4.     the only reason paragraph 9A(1)(c), paragraph 9B(1A)(c) or subparagraph 9BA(1)(a)(v) of the Act ceased to be satisfied in relation to the income stream is because the contract or governing rules of the income stream were changed to enable the income stream to be commuted in accordance with:\n  1.        regulation 1.08AA of the Retirement Savings Accounts Regulations 1997; or\n  2.      regulation 1.05AA of the Superannuation Industry (Supervision) Regulations 1994; or\n  3.    regulation 1.06C of the Superannuation Industry (Supervision) Regulations 1994.\n\n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument maintains a narrow, targeted scope consistent with its purpose. It specifically addresses debts arising from legacy product conversions under the 2017 and 2022 superannuation reforms, without expanding to other debt types or broader waiver powers."},"complexity_factors":["Heavy cross-referencing to external regulations (3 different superannuation regulations cited)","Nested conditional logic in section 5(2) requiring tracing through multiple statutory provisions (paragraphs 9A(1)(c), 9B(1A)(c), subparagraph 9BA(1)(a)(v))","Requires understanding of technical superannuation concepts: 'commutation', 'asset-test exempt income streams', 'governing rules'","Two separate but similar debt classes with subtly different trigger conditions (section 1223A vs section 1223 debts)","Dependent on understanding of 2017 and 2022 superannuation regulatory changes not explained in the instrument itself"],"plain_english_summary":"This instrument creates a special waiver for certain Centrelink debts that arose when older Australians converted legacy, asset-test‑exempt retirement income products into modern superannuation forms. It lets the government write off debts that resulted from those conversions so long as the conversion followed the specified superannuation regulations and the person did not knowingly provide false information.\n\nIt targets pensioners and social security recipients who were penalised by changed asset or income treatment after complying with those conversion rules."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"This instrument does not amend the Social Security Act; it exercises the specification power in s1237AB to identify which existing Commonwealth debts may be waived. It confines waiver eligibility to debts arising from legacy product conversions as described (instrument s5), so it clarifies and limits the class of debts for waiver rather than expanding the Act's substantive provisions."},"complexity_factors":["Cross-references to multiple provisions of the Social Security Act (ss1223A, 1223, 9A, 9B, 9BA) create layered eligibility tests (instrument s5(1)–(2)).","Dependence on three external regulations that authorise commutation (Retirement Savings Accounts reg 1.08AA; SIS regs 1.05AA and 1.06C) requires regulatory cross-checking (instrument s5(1)(3), s5(2)(4)).","Different legal bases for debts (s1223A versus s1223) mean distinct legislative pathways must be identified and applied (instrument s5(1)(1) vs s5(2)(1)).","An explicit exclusion where the person 'knowingly' provided false or misleading information imposes a fault-based evidential inquiry (instrument s5(1)(2), s5(2)(2)).","A causal test that the cessation of an entitlement was 'only' due to a contract/governing‑rules change to permit commutation requires factual and legal causation analysis (instrument s5(2)(3)–(4)).","Specification is made under ministerial power in s1237AB(1) of the Social Security Act, concentrating decision-making authority in the instrument (instrument s3).","Commencement is tied to the parliamentary disallowance period under the Legislation Act, adding timing and procedural dependence (instrument s2)."],"plain_english_summary":"This specification sets out which Commonwealth social security debts may be waived when they arose because a formerly asset-test exempt income stream was converted (commuted) under specific retirement/superannuation regulations, provided the person did not knowingly give false information. It applies to people whose income streams were changed to allow commutation; the debts covered may be written off by the Commonwealth, and the Minister uses the power in section 1237AB of the Social Security Act to specify eligible cases."}},"importantCases":[],"_links":{"self":"/api/acts/social-security-waiver-of-debts-legacy-product-conversions-specification-2025","history":"/api/acts/social-security-waiver-of-debts-legacy-product-conversions-specification-2025/history","analysis":"/api/acts/social-security-waiver-of-debts-legacy-product-conversions-specification-2025/analysis","conflicts":"/api/acts/social-security-waiver-of-debts-legacy-product-conversions-specification-2025/conflicts","importantCases":"/api/acts/social-security-waiver-of-debts-legacy-product-conversions-specification-2025/important-cases","documents":"/api/acts/social-security-waiver-of-debts-legacy-product-conversions-specification-2025/documents"}}