523Circumstances for waiver—settlements between Commonwealth and debtors

523  Circumstances for waiver—settlements between Commonwealth and debtors

Civil actions

 (1) If the Commonwealth has agreed to settle a civil action against a debtor in relation to a recoverable amount for recovery of an amount that is less than the full amount of the recoverable amount, the System Governor must waive the right to recover the difference between the recoverable amount and the amount that is the subject of the settlement.

Proceedings before the Administrative Review Tribunal

 (2) If the System Governor has agreed to settle proceedings before the Administrative Review Tribunal relating to recovery of a recoverable amount on the basis that a debtor in relation to the recoverable amount will pay less than the full amount of the recoverable amount, the System Governor must waive the right to recover the difference between the recoverable amount and the amount that is the subject of the settlement.

Agreement after recovery of at least 80% of recoverable amount

 (3) If:

 (a) the Commonwealth has recovered at least 80% of the original value of a recoverable amount from a debtor in relation to the recoverable amount; and

 (b) the Commonwealth and the debtor agree that the recovery is in full satisfaction for the whole of the recoverable amount; and

 (c) the debtor cannot repay a greater proportion of the recoverable amount;

the System Governor must waive the remaining 20% or less of the value of the original recoverable amount.

Agreement for payment of present value of unpaid amount

 (4) If the System Governor and a debtor in relation to a recoverable amount agree that the recoverable amount will be fully satisfied if the debtor pays the Commonwealth an amount (the agreed amount) that is less than the amount of the recoverable amount outstanding at the time of the agreement (the unpaid amount), the System Governor must waive the right to recover the difference between the unpaid amount and the agreed amount.

 (5) The System Governor must not make an agreement described in subsection (4) unless the System Governor is satisfied that the agreed amount is at least the present value of the unpaid amount if it is repaid in instalments of amounts, and at times, determined by the System Governor.

 (6) For the purposes of subsection (5), the present value of the unpaid amount is the amount worked out in accordance with the method prescribed by the rules.