94Waiver in relation to settlements

#### 94 Waiver in relation to settlements (1) If the Commonwealth has agreed to settle a civil action against a debtor for recovery of a debt for less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement. (2) If: (a) the Commonwealth has recovered at least 80% of the original value of a debt from a debtor; and (b) the Commonwealth and the debtor agree that the recovery is in full satisfaction for the whole of the debt; and (c) the debtor cannot repay a greater proportion of the debt; the Secretary must waive the remaining 20% or less of the value of the original debt. (3) If the Secretary and a debtor agree that the debtor’s debt will be fully satisfied if the debtor pays the Commonwealth an agreed amount that is less than the amount of the debt outstanding at the time of the agreement (the unpaid amount), the Secretary must waive the right to recover the difference between the unpaid amount and the agreed amount. (4) The Secretary must not make an agreement described in subsection (3) unless the Secretary 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 Secretary. (5) For the purposes of subsection (4), the present value of the unpaid amount is the amount worked out in accordance with the method prescribed by the rules.