Income Apportionment Resolution Scheme Determination 2025

Contents

Part 1—Preliminary 3

1 Name ...................................................3

2 Commencement.............................................3

3 Authority.................................................3

4 Simplified outline of instrument...................................3

5 Definitions................................................4

6 Other Act relevant to scheme.....................................5

Part 2—Specific entitlement and exclusion criteria 5

7 Entitlement criteria...........................................5

8 Exclusion criteria............................................5

Part 3—Resolution payment amounts 6

9 Amount of resolution payment....................................6

Part 4—Application process, decisions and offers and refusals 7

Division 1—Applications 7

10 Applications..............................................7

11 Additional information........................................8

Division 2—Decisions 9

12 Decision on application........................................9

13 Debts of less than $2,000.......................................9

Division 3—Offers and refusals 10

14 Offer..................................................10

15 Refusal.................................................11

Division 4—Extensions 12

16 Extensions...............................................12

Division 5—Accepting an offer and payment 12

17 Accepting an offer..........................................12

18 Methods of payment.........................................13

Division 6—Related provision 13

19 Deemed rejection and acceptance after initial rejection....................13

Part 5—Review 14

Division 1—Review on Secretary’s initiative 14

20 Internal review on Secretary’s initiative.............................14

Division 2—Review on application 15

21 Internal review on application...................................15

22 Limited review............................................16

23 Decision on review.........................................16

24 Withdrawal of application for review...............................17

Division 3—Related provisions 17

25 Effect of review on previous offer or refusal...........................17

26 Acceptance of offer may cease to have effect..........................18

Part 6—Miscellaneous 18

27 Approved forms...........................................18

28 Payment nominees and correspondence nominees.......................18

29 Other agents.............................................19

30 Deceased estates...........................................19

31 Debt recovery.............................................20

Schedule 1—Eligible Debt Reason Codes 21

Part 1—Preliminary

1 Name

This instrument is the Income Apportionment Resolution Scheme Determination 2025.

2 Commencement

(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.

<table cellspacing="0" cellpadding="0" style="margin-left:5.35pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:407.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement information</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 3</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Provisions</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Date/Details</span></p></td></tr></thead><tbody><tr><td style="width:95.65pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1. The whole of this instrument</span></p></td><td style="width:209pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The later of:</span></p><ol class="awlist1" style="margin:0pt; padding-left:0pt"><li class="paragraph" style="margin-left:36pt; text-indent:-18pt; font-size:10pt"><span style="width:6.9pt; font:7pt 'Times New Roman'; display:inline-block"></span><span>the day after this instrument is registered; and</span></li><li class="paragraph" style="margin-left:36pt; text-indent:-18pt"><span style="width:5.17pt; font:7pt 'Times New Roman'; display:inline-block"></span><span style="font-size:10pt">30 January 2026.</span></li></ol></td><td style="width:81.45pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span></span></p></td></tr></tbody></table>

Note: 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.

(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.

3 Authority

This instrument is made under item 3 of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

4 Simplified outline of instrument

This instrument sets out provisions for and in relation to the Income Apportionment Resolution Scheme established by force of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

The scheme provides for the payment to a person of an amount of reparation (to be called a resolution payment) if they owe or owed a debt to the Commonwealth under the social security law, the repealed Farm Household Support Act 1992, the family assistance law or the Veterans’ Entitlements Act 1986, and that debt satisfies specified criteria including that the debt arose (whether wholly or partly, or directly or indirectly) because certain work income (whether of the person or a partner of the person) was calculated based on an income apportionment method over a particular period.

A person wishing to participate in the scheme will need to make an application in accordance with the provisions of this instrument and, if the Secretary so decides under the scheme, an offer will be made to the person which the person may decide to accept or reject. The acceptance of an offer will need to be in accordance with this instrument. If an effective acceptance of an offer is lodged under the scheme, the Commonwealth will be released and forever discharged from all liability in relation to a claim that arises as a result (whether directly or indirectly) of how relevant work income was calculated. A person will be able to have a payment nominee or correspondence nominee act on their behalf.

The instrument also provides for the review of decisions under the scheme and for related matters.

5 Definitions

(1) In this instrument:

acceptance period has the meaning given by paragraph 14(2)(h).

Amendment Act means the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

approved form means a form approved under section 27.

correspondence nominee see section 123A of the Social Security (Administration) Act 1999.

effective acceptance means an acceptance that complies with section 17.

payment nominee see section 123A of the Social Security (Administration) Act 1999.

prescribed Act means:

an Act that forms part of the social security law; or
the repealed Farm Household Support Act 1992; or
an Act that forms part of the family assistance law; or
the Veterans’ Entitlements Act 1986.

prescribed income apportionment method means a method described in paragraph 2(2)(d) of Schedule 3.

relevant debt in relation to an entitlement under Schedule 3, means a debt that is referred to in subitem 2(2) of Schedule 3.

Schedule 3 means Schedule 3 to the Amendment Act.

scheme means the Income Apportionment Resolution Scheme established by force of Schedule 3.

(2) An expression used in the Social Security Act 1991 or in Schedule 3 and in this instrument has the same respective meaning in this instrument as it has in that Act or that Schedule.

6 Other Act relevant to scheme

For paragraph 3(1)(a) of Schedule 3, the Veterans’ Entitlements Act 1986 is an Act for the purposes of subparagraph 2(2)(a)(iv) of Schedule 3.

Part 2—Specific entitlement and exclusion criteria

7 Entitlement criteria

(1) For paragraph 3(1)(f) of Schedule 3, a person is entitled to be paid a resolution payment in relation to a particular relevant debt if it is reasonably likely that the debt is attributable to a prescribed income apportionment method. (2) Subsection (1) applies subject to the person also meeting the criteria at paragraphs 2(2)(a) to (c) of Schedule 3 and the other provisions of this instrument in relation to the debt.

Note: The effect of this section is to qualify the entitlement criterion in paragraph 2(2)(d) of Schedule 3.

8 Exclusion criteria

Purposes of this section

For paragraph 3(1)(f) of Schedule 3, this section specifies criteria that mean a person is not entitled to be paid a resolution payment in relation to a particular relevant debt.

Note: The effect of subsection (1) is to specify exclusion criteria that operate even if the person otherwise satisfies the entitlement criteria.

Person not entitled to be paid under scheme on certain grounds

A person is not entitled to be paid a resolution payment in relation to the debt if the debt is attributable (whether wholly or partly) to fraud that has been found or determined to have been committed in or as a result of criminal proceedings brought under a law of the Commonwealth.

(3) A person is not entitled to be paid a resolution payment in relation to the debt if, before the commencement of this instrument: (a) the debt to the Commonwealth was reviewed; and (b) a new decision was made in relation to the debt; and (c) it was decided or found that the debt to the Commonwealth: (i) did not exist or was equal to zero; or (ii) arose wholly for a reason other than the use of a prescribed income apportionment method. (4) Subparagraph (3)(c)(ii) does not apply if the debt: (a) related to the employment income of the person or of a partner of the person; and (b) was reviewed during a period beginning on 1 October 2020 and ending immediately before the commencement of this instrument. (5) A person is not entitled to be paid a resolution payment in relation to the debt if it has been waived in full by the Commonwealth before 30 January 2026. (6) A person is not entitled to be paid a resolution payment in relation to the debt if it is reasonably likely that the debt is attributable (whether wholly or partly, or directly or indirectly) to the determination of Division 2 work income of the person, or of a partner of the person, using a prescribed income apportionment method and any of the following circumstances apply: (a) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was at or above pension age over one or more periods wholly occurring before 20 September 2009; (b) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was below pension age over one or more periods wholly occurring before 20 September 2003; (c) the debt relates (whether directly or indirectly) to the payment of benefit PP (partnered).

Note: Section 18 of the Social Security Act 1991 defines benefit PP (partnered) as parenting payment whose rate is worked out under the Benefit PP (Partnered) Rate Calculator in section 1068B of that Act.

Part 3—Resolution payment amounts

9 Amount of resolution payment

(1) For paragraph 3(1)(g) of Schedule 3, the amount of a resolution payment that a person is entitled to be paid in relation to a particular relevant debt of the person is the amount specified in Column 2 of the table which corresponds to the value of the debt that applies under Column 1 (the debt value). (2) Subject to subsection (3), the debt value of a particular relevant debt of the person is the amount that is recorded in the records of Services Australia as at 30 January 2026.

Note: Services Australia was previously known as the Human Services Department and subsection 23(1) of the Social Security Act 1991 defines the Human Services Department as Services Australia.

The debt value of a debt does not include any amount that has been waived in relation to the debt. Any payment by, or on behalf of, a person to reduce the amount of a debt of the person is not to be taken into account in determining the debt value of the debt.

Part 4—Application process, decisions and offers and refusals

Division 1—Applications

10 Applications

Period for making application (1) Subject to subsection (7), a person may make an application for a resolution payment only during the period: (a) starting on 30 January 2026; and (b) ending on 29 January 2027. Requirements for application (2) For paragraph 3(1)(d) of Schedule 3, an application for a resolution payment in relation to a particular relevant debt: (a) must be made by: (i) submitting an application to the Secretary in the approved form; or (ii) making an application to the Secretary orally (whether in person, by telephone or by other means approved by the Secretary); and (b) must contain, or be accompanied by, any information specified by the approved form.

Note: Another person may act for and on behalf of a person who is, or may be, entitled to a resolution payment. See sections 28 (Payment nominees and correspondence nominees), 29 (Other agents) and 30 (Deceased estates).

(3) If a person makes an oral application under subparagraph (2)(a)(ii), the Secretary must: (a) make a written record of the details of the application; and (b) note on the record the date on which the application is made. Combined applications (4) The application may relate to more than one relevant debt. (5) If the application relates to more than one relevant debt, the application is taken to be a separate application for a resolution payment in relation to each relevant debt. One application per relevant debt (6) A person may not make more than one application in respect of a particular relevant debt. Extension of time to make application (7) On a person’s request, the Secretary may allow a person to make an application after 29 January 2027 and before 30 January 2028 if the Secretary is satisfied that special circumstances exist that make it appropriate to do so. (8) If the Secretary decides that special circumstances do not exist, the Secretary must give the person making the request under subsection (7) written notice of the decision and the reasons for the decision. (9) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

11 Additional information

For paragraph 3(1)(e) of Schedule 3, the Secretary may request a person to provide such additional information or documents as the Secretary may reasonably require to make a decision on the person’s application in relation to a particular relevant debt.

(2) A request under subsection (1): (a) may be made in any manner approved by the Secretary; and (b) must specify: (i) that the request is being made under this section; and (ii) if the person’s application relates to more than one relevant debt, the particular relevant debt to which the request relates; and (iii) the nature of the information or document that is requested; and (iv) how the person is to provide the information or document; and (v) the officer (or class of officer) (if any) to whom the information or document is to be provided; and (vi) the period of at least 14 days from the date of the request (the response period) within which the person is to provide the information or document; and (c) inform the person that, in relation to the particular relevant debt: (i) the Secretary may decide not to take any further action in relation to the application until the request is complied with; and (ii) the Secretary may decide the person is not entitled to be paid a resolution payment if the request is not complied with within the response period. (3) The Secretary may decide not to take any further action in relation to a person’s application in relation to a particular relevant debt until the person has complied with any request under subsection (1) in relation to the debt.

Division 2—Decisions

12 Decision on application

For paragraph 3(1)(h) of Schedule 3, a decision on an application under section 10 is to be made by the Secretary.

Notes: A power to make a decision may be delegated under section 234 of the Social Security (Administration) Act 1999.

Note: See also section 13 of this instrument.

(2) In relation to each relevant debt in a person’s application, the Secretary must, depending on the outcome of the assessment of the debt having regard to the requirements of the scheme: (a) decide that the person is entitled to be paid a resolution payment and include in the decision the amount of the payment; or (b) decide that the person is not entitled to be paid a resolution payment. (3) This section does not require the Secretary to make a decision in relation to a relevant debt while the Secretary is waiting for the person to comply with a request under subsection 11(1) in relation to the debt.

Note: A request under section 11 must specify the period within which the person is to provide the requested information or document.

(4) In relation to a relevant debt, if a person does not comply with a request under subsection 11(1) within the response period specified under subparagraph 11(2)(b)(vi), the Secretary may make a decision under paragraph (2)(b) on the basis that the person has failed to provide sufficient information to show that the person is entitled to be paid a resolution payment.

13 Debts of less than $2,000

(1) This section limits section 6A of the Social Security (Administration) Act 1999 and applies in relation to a particular relevant debt in a person’s application only if, in the records of Services Australia, the debt reason code assigned to the debt matches an eligible debt reason code.

Note: Manual assessment otherwise applies.

(2) For subparagraph 3(1)(h)(ii) of Schedule 3 but subject to subsection (3), in relation to each relevant debt in a person’s application, a computer program arranged by the Secretary may be used only to make a decision that the person is entitled to be paid a resolution payment under the scheme and the amount of the payment if all of the following circumstances apply: (a) the debt value of the debt under section 9 is less than $2,000; (b) the debt is taken to be reasonably likely to be attributable to a prescribed income apportionment method; (c) the records of Services Australia do not include a record that the person has been prosecuted for fraud under a law of the Commonwealth in relation to a benefit or payment under a prescribed Act; (d) the person meets the other requirements of the scheme. (3) Despite subsection (2), a computer program may not be used to make a decision in relation to a relevant debt in a person’s application if the application is made: (a) after 29 January 2027, unless the Secretary is satisfied under subsection 10(7) that special circumstances exist; or (b) by a correspondence nominee; or (c) by another person acting as the lawful representative of the person in relation to whom the application is made; or (d) by a personal representative acting under section 30. (4) For paragraph (2)(b), the debt is taken to be reasonably likely to be attributable to a prescribed income apportionment method only if, in the records of Services Australia, the debt reason code assigned to the debt matches an eligible debt reason code. (5) A decision under this section is taken to be a decision of the Secretary. (6) This section does not apply if the application is for the review of a decision under Part 5. (7) In this section:

eligible debt reason code means a code listed in column 2 of the table in Schedule 1.

Division 3—Offers and refusals

14 Offer

(1) For subparagraph 3(1)(h)(iv) and paragraph 3(1)(i) of Schedule 3, if a decision is made under section 12 or 13 that a person is entitled to a resolution payment in relation to a particular relevant debt, the Secretary must, by written notice to the person, make an offer to pay the resolution payment in the amount determined in relation to the debt under section 9. (2) The notice must do the following:

specify the date of the offer;
if the person’s application under section 10 relates to more than one relevant debt, specify the particular relevant debt to which the offer relates;

(c) include the decision that the person is entitled to be paid the resolution payment and explain the reasons for the decision;
(d) include the amount of the resolution payment and the reasons for the determination of that amount;
(e) set out the options for the payment of the resolution payment, which may include how a resolution payment may be applied to reduce the outstanding amount of another debt of the person due to the Commonwealth under a prescribed Act;
(f) inform the person that they may consider obtaining independent advice about whether or not to accept the offer;
(g) explain how to accept or reject the offer;
(h) inform the person that the offer is only open for acceptance for the period of 56 days from the date of the offer (the acceptance period), unless the person is granted an extension of the acceptance period;
(i) explain the effect of the effective acceptance of the offer to be paid the resolution payment, as provided by subitem 2(5) of Schedule 3 or, if an agent is acting on behalf of the person, as provided by subitem 2(6) of Schedule 3;
(j) inform the person that they do not have to accept the offer and that, if the person does not accept the offer by the end of the acceptance period, the offer will expire and be taken to be rejected at that time unless the person is granted an extension of the acceptance period;
(k) inform the person that they may apply for an extension of the acceptance period and explain how to make that application;
(l) inform the person that they may apply for a review of the amount of the resolution payment within 56 days from the date of the offer and explain how to make that application;
(m) inform the person that they may only make one application for a resolution payment in respect of a particular relevant debt.

Note: For the purposes of paragraph (l), requirements for an application for internal review are set out in section 21.

(3) Subsection (2) does not limit the matters that may be dealt with or included in the notice.

Note: For example, if an application relates to more than one relevant debt, the notice may include offers in relation to more than one debt.

(4) The notice may be combined with a notice under section 15.

15 Refusal

(1) For subparagraph 3(1)(h)(iv) of Schedule 3, if a decision is made under section 12 that a person is not entitled to be paid a resolution payment in relation to a particular relevant debt, the Secretary must, by written notice to the person, refuse the application in relation to the debt. (2) The notice must do the following:

specify the date of the refusal;
if the person’s application under section 10 relates to more than one relevant debt, specify the particular relevant debt to which the refusal relates;

(c) include the decision that the person is not entitled to be paid a resolution payment and the reasons for the decision;
(d) inform the person that they may, within a period of 56 days from the date of the refusal (the designated period), apply for a review of the decision and explain how to make that application;
(e) inform the person that they may apply for an extension of the designated period and explain how to make that application.

Note: For the purposes of paragraph (d), requirements for an application for internal review are set out in section 21.

(3) Subsection (2) does not limit the matters that may be dealt with or included in the notice.

Note: For example, if an application relates to more than one relevant debt, the notice may include refusals in relation to more than one debt.

(4) The notice may be combined with a notice under section 14.

Division 4—Extensions

16 Extensions

(1) For paragraph 3(1)(r) of Schedule 3, in relation to a relevant debt, the Secretary may, on application made in accordance with the requirements set out in a notice under section 14 or 15, extend, by 28 days or such longer period as may be decided by the Secretary: (a) the acceptance period for an offer; or (b) the period for applying for a review mentioned in the notice.

The Secretary may grant an extension only if the Secretary considers that special circumstances exist that make it appropriate to do so. The Secretary must give the person who made the application written notice of the Secretary’s decision and the reasons for it. If the Secretary decides that special circumstances do not exist, the notice under subsection (3) must inform the person that they may, within 28 days from the date of the notice, apply for a review of the decision and explain how to make that application. A person may:

(a) make more than one application for an extension of time; and
(b) make an application for an extension of time even if the time specified in paragraph (1)(a) or (b) (as the case may be) has expired.

Division 5—Accepting an offer and payment

17 Accepting an offer

For paragraph 3(1)(j) of Schedule 3, a person who wants to lodge an effective acceptance of an offer for the payment of a resolution payment in relation to a relevant debt must do so in accordance with this section.

(2) The acceptance must: (a) be in the approved form; and (b) if there is more than one relevant debt in relation to which there is an offer, specify which offer is accepted; and (c) be signed in a manner approved by the Secretary; and (d) be lodged with the Secretary: (i) by the end of the acceptance period for the offer (or any extension of that period granted under section 16) unless the Secretary accepts the acceptance under subsection 19(3); and (ii) in accordance with any other requirements set out in the notice under section 14. (3) The acceptance must include, or be accompanied by: (a) an acknowledgement that the person understands the effect of accepting the offer; and (b) an election in the approved form about how the resolution payment should be paid or applied, taking into account subsection 18(2).

18 Methods of payment

(1) This section applies if a person lodges an effective acceptance on their own behalf or on behalf of another person in relation to a relevant debt. (2) For paragraph 3(1)(m) of Schedule 3 and subject to subsection (3), the resolution payment in relation to the debt must, according to the person’s election under paragraph 17(3)(b) be: (a) paid to the bank account nominated in the election; or (b) applied to reduce the outstanding amount of a debt of the person due to the Commonwealth under any prescribed Act.

Note: A payment nominee (see section 28) may nominate the payment nominee’s bank account.

(3) The Secretary may direct that the whole or a part of the resolution payment be paid in a different way to that provided for by the election. If the Secretary gives a direction, the relevant amount must be paid in accordance with the direction.

Division 6—Related provision

19 Deemed rejection and acceptance after initial rejection

For paragraph 3(1)(l) of Schedule 3 and subject to subsections (2) and (3), if a person does not lodge an effective acceptance of an offer in relation to a relevant debt before the end of the acceptance period for the offer, the person is taken to have rejected the offer. If the Secretary extends the acceptance period for an offer in relation to the debt one or more times under section 16, the person is taken to have rejected the offer if the person has not lodged an effective acceptance of the offer before the end of the final extended acceptance period.

(3) The Secretary may, on a person’s request, accept an effective acceptance of an offer: (a) after the end of the acceptance period for the offer if the Secretary considers that special circumstances exist that make it appropriate to do so; or (b) after an initial rejection of the offer if: (i) the person decides to accept the offer after further consideration of the matter; and (ii) the Secretary considers that special circumstances exist that make it appropriate to do so. (4) If the Secretary decides that special circumstances do not exist, the Secretary must give the person making the request under subsection (3) written notice of the decision and the reasons for the decision. (5) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

Part 5—Review

Division 1—Review on Secretary’s initiative

20 Internal review on Secretary’s initiative

(1) For paragraph 3(1)(n) of Schedule 3, the Secretary may, on the Secretary’s own initiative, review a decision made on an application for a resolution payment under this instrument. (2) Without limiting subsection (1), the Secretary may review a decision after a person has accepted an offer to be paid a resolution payment if: (a) it appears to the Secretary that an error has been made in the decision regarding an entitlement or other matter under Schedule 3 or this instrument; or (b) it appears that the person is not entitled for any reason to receive all or part of the resolution payment; or (c) the Secretary has received further information that is relevant to the decision on the application, an entitlement or other matter under Schedule 3 or this instrument; or (d) the Secretary is satisfied that there is some other reasonable ground on which to initiate the review despite the acceptance of the offer. (3) On a review, the Secretary may: (a) affirm the decision; or (b) vary the decision; or (c) set aside the decision and substitute a new decision. (4) The Secretary must give the person in relation to whom the decision is made written notice of the decision and the reasons for the decision. (5) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application. (6) If the decision on the review is that a person is entitled to a resolution payment of a particular amount in relation to a relevant debt: (a) unless subsection 25(3) applies, the notice under subsection (4) must comply with subsection 14(2) (other than paragraph 14(2)(l)); and (b) sections 16 to 19 apply in relation to the person and the debt.

Division 2—Review on application

21 Internal review on application

(1) For paragraph 3(1)(n) of Schedule 3, a person may apply to the Secretary to review a decision made under any of the following provisions: (a) section 12 or 13; (b) subsection 10(7), 16(1) or 19(3); (c) section 20; (d) subsection (3) of this section. (2) Subject to subsection (3), in the case of an application for the review of a decision under section 12, 13 or 20: (a) if the decision that was made resulted in an offer under section 14, the application must be made: (i) before the end of the acceptance period for the offer or, if the Secretary extends the acceptance period one or more times under subsection 16(1), before the end of the final extended acceptance period; and (ii) before the offer is accepted; and (b) if the decision that was made resulted in a refusal under section 15, the application must be made before the end of the designated period under section 15 or, if the Secretary extends the designated period one or more times under subsection 16(1), before the end of the final extended designated period.

The Secretary may allow a person to apply for a review after the end of a period applying under subsection (2) if the Secretary considers that special circumstances exist that make it appropriate to do so. The application must be made by:

submitting an application to the Secretary in the approved form; or
making an application to the Secretary orally (whether in person, by telephone or by other means approved by the Secretary).

If a person makes an oral application under paragraph (4)(b), the Secretary must:

make a written record of the details of the application; and
note on the record the date on which the application is made.

(6) If the Secretary decides that special circumstances do not exist for subsection (3), the Secretary must give the person who wishes to apply for review written notice of the decision and the reasons for the decision. (7) The notice under subsection (6) must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

22 Limited review

(1) The review under this Division of a decision under section 12, 13 or 20 is limited to: (a) whether a debt owed to the Commonwealth gives rise to an entitlement under the scheme; or (b) whether the amount of a resolution payment set out in an offer under section 14, or decided under subsection 20(3), is in accordance with section 9. (2) The review under this Division of a decision under subsection 10(7), 16(1), 19(3) or 21(3) is limited to whether special circumstances exist that make it appropriate for the Secretary to take the action mentioned in the relevant subsection.

23 Decision on review

The Secretary must conduct the review as soon as is reasonably practicable after the application for review has been made. On a review, the Secretary may:

in the case of a review of a decision under section 12 or 20 – affirm or vary the decision or set aside the decision and substitute a new decision; and
in the case of a review of a decision under section 13 as to whether the amount of a resolution payment set out in an offer under section 14 is in accordance with section 9 – affirm or vary the decision or set aside the decision and substitute a new decision; and
in the case of a review of a decision under subsection 10(7) – decide whether or not to allow an application to be made under that subsection; and
in the case of a review of a decision under subsection 16(1) – decide whether or not to grant an extension under that subsection; and
in the case of a review of a decision under subsection 19(3) – decide whether or not to accept an effective acceptance of an offer under that subsection; and
in the case of a review of a decision under subsection 21(3) – decide whether or not to allow an application to be made under that subsection.

The person who conducts the review on behalf of the Secretary must not be the person who made the decision to which the review relates. The person who conducts the review must give the applicant written notice of the decision on the review and the reasons for the decision. If the decision on the review is that a person is entitled to a resolution payment of a particular amount in relation to a relevant debt:

(a) unless subsection 25(3) applies, the notice under subsection (4) must comply with subsection 14(2) (other than paragraph 14(2)(l)); and
(b) sections 16 to 19 apply in relation to the person and the debt; and
(c) sections 20 and 21 do not apply in relation to the decision.

If the decision on the review is that a person is not entitled to a resolution payment, sections 20 and 21 do not apply in relation to the decision.

24 Withdrawal of application for review

(1) Subject to subsection (2), a person who has applied for a review may withdraw the application by: (a) submitting a written notice to the Secretary in the approved form; or (b) contacting the Secretary and withdrawing the application orally (whether in person, by telephone or by other means approved by the Secretary). (2) The application may only be withdrawn before a decision is made under subsection 23(2). (3) If a person orally withdraws an application under paragraph (1)(b), the Secretary must: (a) make a written record of the details of the withdrawal; and (b) note on the record the date on which the withdrawal is made. (4) If the application is withdrawn, the application is taken never to have been made.

Division 3—Related provisions

25 Effect of review on previous offer or refusal

This section applies if, in relation to a relevant debt:

the Secretary decides to review a decision that resulted in:

(i) an offer under section 14 for which there has not been an effective acceptance (a previous offer); or
(ii) a refusal under section 15 (a previous refusal); or

a person applies for a review of a decision that resulted in:

(i) a previous offer; or
(ii) a previous refusal.

The effect of the previous offer or previous refusal is suspended pending the outcome of the review. If, on review, the Secretary affirms the decision that resulted in the previous offer or previous refusal:

the previous offer or previous refusal becomes current again from the date of the notice of the review decision; and
for the previous offer – the number of days remaining in the acceptance period is taken to be 56 days from the date of the notice of the review decision.

(4) If, on review, the Secretary substitutes a new decision for the decision that resulted in the previous offer or previous refusal, the previous offer or previous refusal ceases to be in force. (5) If a person withdraws an application for review: (a) the previous offer or previous refusal becomes current again from the time of the withdrawal; and (b) for the previous offer – at the time of the withdrawal, the number of days remaining in the acceptance period is taken to be the number of days that remained immediately before the application was made.

26 Acceptance of offer may cease to have effect

For paragraph 3(1)(k) of Schedule 3, if it is decided on a review under this Part that a person is not entitled for any reason to receive all or part of a resolution payment in relation to a relevant debt, any effective acceptance of an offer in relation the debt by or on behalf of the person ceases to be in force on and from the date of the review decision.

Part 6—Miscellaneous

27 Approved forms

The Secretary may, in writing, approve one or more forms for the purposes of a provision of this instrument that provides for something to be done in an approved form.

28 Payment nominees and correspondence nominees

For paragraph 3(1)(q) of Schedule 3, Part 3A of the Administration Act applies as if:

a resolution payment were a relevant payment within the meaning of Part 3A of the Administration Act; and a person who is, or may be, entitled to be paid a resolution payment under the scheme (a principal) were a benefit recipient for Division 4 of Part 3A of the Administration Act.

In order to avoid doubt, it is declared as follows:

if, immediately before commencement, a person is the payment nominee of a principal, the person continues as the payment nominee of the principal for the purposes of the operation of the scheme on and from commencement; if, immediately before commencement, a person is the correspondence nominee of a principal, the person continues as the correspondence nominee of the principal for the purposes of the operation of the scheme on and from commencement; a person appointed as the payment nominee of a principal on or after commencement, is the payment nominee of the principal for the purposes of the social security law including the operation of the scheme; a person appointed as the correspondence nominee of a principal on or after commencement, is the correspondence nominee of the principal for the purposes of the social security law including the operation of the scheme.

Note 1: Section 123E of the Administration Act provides for the suspension and revocation of nominee appointments. Any suspension or revocation under that section will be effective immediately for the purposes of the scheme.

Note 2: Section 123B(b) of the Administration Act provides for the Secretary to direct that a payment be made to a payment nominee while Division 4 of Part 3A of the Administration Act does not provide for a correspondence nominee to receive payment. Also, paragraph 17(3)(b) of this instrument requires an election to be provided about how a resolution payment should be applied.

(3) In this section:

Administration Act means the Social Security (Administration) Act 1999.

commencement means the commencement of this instrument.

29 Other agents

(1) For paragraph 3(1)(q) of Schedule 3, section 28 does not limit who may act for or on behalf of a person who is, or may be, entitled to be paid a resolution payment under the scheme (a principal).

Note: For example, a person may be authorised to act under a power of attorney or court order.

(2) In connection with subsection (1), if a person (the agent) acts, or purports to act, for or on behalf of a principal: (a) the Secretary may require the production of specified evidence or other information with respect to the agent’s authority to act for or on behalf of the principal; and (b) Part 3A of the Social Security (Administration) Act 1999 (Part 3A), other than Division 2, applies as if: (i) the agent were a nominee within the meaning of Part 3A; and (ii) a resolution payment were a relevant payment within the meaning of Part 3A; and (iii) the principal were a benefit recipient for Division 4 of Part 3A.

30 Deceased estates

(1) For paragraph 3(1)(q) of Schedule 3, the personal representative of a person who is, or may be, entitled to be paid a resolution payment under the scheme and who has died may: (a) lodge an application for a resolution payment as if the person was still alive and the personal representative was acting on the person’s behalf; and (b) accept or reject an offer as if the person was still alive and the personal representative was acting on the person’s behalf; and (c) take any other step under this instrument as if the person was still alive and the personal representative was acting on the person’s behalf. (2) In this section:

personal representative means the executor or administrator of the estate of a deceased person.

31 Debt recovery

(1) This section applies to a debt due to the Commonwealth under item 5 of Schedule 3. (2) For paragraph 3(1)(o) of Schedule 3, the debt will be treated as if it were a debt arising under the Social Security Act 1991 and recoverable under Chapter 5 of that Act. (3) For paragraph 3(1)(n) of Schedule 3, Parts 4 and 4A of the Social Security (Administration) Act 1999 apply in relation to a decision made under Chapter 5 of the Social Security Act 1991 in relation to the debt.

Schedule 1—Eligible Debt Reason Codes

Note: See section 13.

1 Name

This instrument is the Income Apportionment Resolution Scheme Determination 2025.

2 Commencement

(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.

<table cellspacing="0" cellpadding="0" style="margin-left:5.35pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:407.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement information</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 3</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Provisions</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Date/Details</span></p></td></tr></thead><tbody><tr><td style="width:95.65pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1. The whole of this instrument</span></p></td><td style="width:209pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The later of:</span></p><ol class="awlist1" style="margin:0pt; padding-left:0pt"><li class="paragraph" style="margin-left:36pt; text-indent:-18pt; font-size:10pt"><span style="width:6.9pt; font:7pt 'Times New Roman'; display:inline-block"></span><span>the day after this instrument is registered; and</span></li><li class="paragraph" style="margin-left:36pt; text-indent:-18pt"><span style="width:5.17pt; font:7pt 'Times New Roman'; display:inline-block"></span><span style="font-size:10pt">30 January 2026.</span></li></ol></td><td style="width:81.45pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span></span></p></td></tr></tbody></table>

Note: 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.

(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.

3 Authority

This instrument is made under item 3 of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

4 Simplified outline of instrument

This instrument sets out provisions for and in relation to the Income Apportionment Resolution Scheme established by force of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

The scheme provides for the payment to a person of an amount of reparation (to be called a resolution payment) if they owe or owed a debt to the Commonwealth under the social security law, the repealed Farm Household Support Act 1992, the family assistance law or the Veterans’ Entitlements Act 1986, and that debt satisfies specified criteria including that the debt arose (whether wholly or partly, or directly or indirectly) because certain work income (whether of the person or a partner of the person) was calculated based on an income apportionment method over a particular period.

A person wishing to participate in the scheme will need to make an application in accordance with the provisions of this instrument and, if the Secretary so decides under the scheme, an offer will be made to the person which the person may decide to accept or reject. The acceptance of an offer will need to be in accordance with this instrument. If an effective acceptance of an offer is lodged under the scheme, the Commonwealth will be released and forever discharged from all liability in relation to a claim that arises as a result (whether directly or indirectly) of how relevant work income was calculated. A person will be able to have a payment nominee or correspondence nominee act on their behalf.

The instrument also provides for the review of decisions under the scheme and for related matters.

5 Definitions

(1) In this instrument:

acceptance period has the meaning given by paragraph 14(2)(h).

Amendment Act means the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

approved form means a form approved under section 27.

correspondence nominee see section 123A of the Social Security (Administration) Act 1999.

effective acceptance means an acceptance that complies with section 17.

payment nominee see section 123A of the Social Security (Administration) Act 1999.

prescribed Act means:

an Act that forms part of the social security law; or
the repealed Farm Household Support Act 1992; or
an Act that forms part of the family assistance law; or
the Veterans’ Entitlements Act 1986.

prescribed income apportionment method means a method described in paragraph 2(2)(d) of Schedule 3.

relevant debt in relation to an entitlement under Schedule 3, means a debt that is referred to in subitem 2(2) of Schedule 3.

Schedule 3 means Schedule 3 to the Amendment Act.

scheme means the Income Apportionment Resolution Scheme established by force of Schedule 3.

(2) An expression used in the Social Security Act 1991 or in Schedule 3 and in this instrument has the same respective meaning in this instrument as it has in that Act or that Schedule.

6 Other Act relevant to scheme

For paragraph 3(1)(a) of Schedule 3, the Veterans’ Entitlements Act 1986 is an Act for the purposes of subparagraph 2(2)(a)(iv) of Schedule 3.

Contents

Part 1—Preliminary 3

1 Name ...................................................3

2 Commencement.............................................3

3 Authority.................................................3

4 Simplified outline of instrument...................................3

5 Definitions................................................4

6 Other Act relevant to scheme.....................................5

Part 2—Specific entitlement and exclusion criteria 5

7 Entitlement criteria...........................................5

8 Exclusion criteria............................................5

Part 3—Resolution payment amounts 6

9 Amount of resolution payment....................................6

Part 4—Application process, decisions and offers and refusals 7

Division 1—Applications 7

10 Applications..............................................7

11 Additional information........................................8

Division 2—Decisions 9

12 Decision on application........................................9

13 Debts of less than $2,000.......................................9

Division 3—Offers and refusals 10

14 Offer..................................................10

15 Refusal.................................................11

Division 4—Extensions 12

16 Extensions...............................................12

Division 5—Accepting an offer and payment 12

17 Accepting an offer..........................................12

18 Methods of payment.........................................13

Division 6—Related provision 13

19 Deemed rejection and acceptance after initial rejection....................13

Part 5—Review 14

Division 1—Review on Secretary’s initiative 14

20 Internal review on Secretary’s initiative.............................14

Division 2—Review on application 15

21 Internal review on application...................................15

22 Limited review............................................16

23 Decision on review.........................................16

24 Withdrawal of application for review...............................17

Division 3—Related provisions 17

25 Effect of review on previous offer or refusal...........................17

26 Acceptance of offer may cease to have effect..........................18

Part 6—Miscellaneous 18

27 Approved forms...........................................18

28 Payment nominees and correspondence nominees.......................18

29 Other agents.............................................19

30 Deceased estates...........................................19

31 Debt recovery.............................................20

Schedule 1—Eligible Debt Reason Codes 21

Part 1—Preliminary

1 Name

This instrument is the Income Apportionment Resolution Scheme Determination 2025.

2 Commencement

(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.

<table cellspacing="0" cellpadding="0" style="margin-left:5.35pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:407.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement information</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 3</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Provisions</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Date/Details</span></p></td></tr></thead><tbody><tr><td style="width:95.65pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1. The whole of this instrument</span></p></td><td style="width:209pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The later of:</span></p><ol class="awlist1" style="margin:0pt; padding-left:0pt"><li class="paragraph" style="margin-left:36pt; text-indent:-18pt; font-size:10pt"><span style="width:6.9pt; font:7pt 'Times New Roman'; display:inline-block"></span><span>the day after this instrument is registered; and</span></li><li class="paragraph" style="margin-left:36pt; text-indent:-18pt"><span style="width:5.17pt; font:7pt 'Times New Roman'; display:inline-block"></span><span style="font-size:10pt">30 January 2026.</span></li></ol></td><td style="width:81.45pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span></span></p></td></tr></tbody></table>

Note: 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.

(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.

3 Authority

This instrument is made under item 3 of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

4 Simplified outline of instrument

This instrument sets out provisions for and in relation to the Income Apportionment Resolution Scheme established by force of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

The scheme provides for the payment to a person of an amount of reparation (to be called a resolution payment) if they owe or owed a debt to the Commonwealth under the social security law, the repealed Farm Household Support Act 1992, the family assistance law or the Veterans’ Entitlements Act 1986, and that debt satisfies specified criteria including that the debt arose (whether wholly or partly, or directly or indirectly) because certain work income (whether of the person or a partner of the person) was calculated based on an income apportionment method over a particular period.

A person wishing to participate in the scheme will need to make an application in accordance with the provisions of this instrument and, if the Secretary so decides under the scheme, an offer will be made to the person which the person may decide to accept or reject. The acceptance of an offer will need to be in accordance with this instrument. If an effective acceptance of an offer is lodged under the scheme, the Commonwealth will be released and forever discharged from all liability in relation to a claim that arises as a result (whether directly or indirectly) of how relevant work income was calculated. A person will be able to have a payment nominee or correspondence nominee act on their behalf.

The instrument also provides for the review of decisions under the scheme and for related matters.

5 Definitions

(1) In this instrument:

acceptance period has the meaning given by paragraph 14(2)(h).

Amendment Act means the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

approved form means a form approved under section 27.

correspondence nominee see section 123A of the Social Security (Administration) Act 1999.

effective acceptance means an acceptance that complies with section 17.

payment nominee see section 123A of the Social Security (Administration) Act 1999.

prescribed Act means:

an Act that forms part of the social security law; or
the repealed Farm Household Support Act 1992; or
an Act that forms part of the family assistance law; or
the Veterans’ Entitlements Act 1986.

prescribed income apportionment method means a method described in paragraph 2(2)(d) of Schedule 3.

relevant debt in relation to an entitlement under Schedule 3, means a debt that is referred to in subitem 2(2) of Schedule 3.

Schedule 3 means Schedule 3 to the Amendment Act.

scheme means the Income Apportionment Resolution Scheme established by force of Schedule 3.

(2) An expression used in the Social Security Act 1991 or in Schedule 3 and in this instrument has the same respective meaning in this instrument as it has in that Act or that Schedule.

6 Other Act relevant to scheme

For paragraph 3(1)(a) of Schedule 3, the Veterans’ Entitlements Act 1986 is an Act for the purposes of subparagraph 2(2)(a)(iv) of Schedule 3.

Part 2—Specific entitlement and exclusion criteria

7 Entitlement criteria

(1) For paragraph 3(1)(f) of Schedule 3, a person is entitled to be paid a resolution payment in relation to a particular relevant debt if it is reasonably likely that the debt is attributable to a prescribed income apportionment method. (2) Subsection (1) applies subject to the person also meeting the criteria at paragraphs 2(2)(a) to (c) of Schedule 3 and the other provisions of this instrument in relation to the debt.

Note: The effect of this section is to qualify the entitlement criterion in paragraph 2(2)(d) of Schedule 3.

8 Exclusion criteria

Purposes of this section

For paragraph 3(1)(f) of Schedule 3, this section specifies criteria that mean a person is not entitled to be paid a resolution payment in relation to a particular relevant debt.

Note: The effect of subsection (1) is to specify exclusion criteria that operate even if the person otherwise satisfies the entitlement criteria.

Person not entitled to be paid under scheme on certain grounds

A person is not entitled to be paid a resolution payment in relation to the debt if the debt is attributable (whether wholly or partly) to fraud that has been found or determined to have been committed in or as a result of criminal proceedings brought under a law of the Commonwealth.

(3) A person is not entitled to be paid a resolution payment in relation to the debt if, before the commencement of this instrument: (a) the debt to the Commonwealth was reviewed; and (b) a new decision was made in relation to the debt; and (c) it was decided or found that the debt to the Commonwealth: (i) did not exist or was equal to zero; or (ii) arose wholly for a reason other than the use of a prescribed income apportionment method. (4) Subparagraph (3)(c)(ii) does not apply if the debt: (a) related to the employment income of the person or of a partner of the person; and (b) was reviewed during a period beginning on 1 October 2020 and ending immediately before the commencement of this instrument. (5) A person is not entitled to be paid a resolution payment in relation to the debt if it has been waived in full by the Commonwealth before 30 January 2026. (6) A person is not entitled to be paid a resolution payment in relation to the debt if it is reasonably likely that the debt is attributable (whether wholly or partly, or directly or indirectly) to the determination of Division 2 work income of the person, or of a partner of the person, using a prescribed income apportionment method and any of the following circumstances apply: (a) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was at or above pension age over one or more periods wholly occurring before 20 September 2009; (b) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was below pension age over one or more periods wholly occurring before 20 September 2003; (c) the debt relates (whether directly or indirectly) to the payment of benefit PP (partnered).

Note: Section 18 of the Social Security Act 1991 defines benefit PP (partnered) as parenting payment whose rate is worked out under the Benefit PP (Partnered) Rate Calculator in section 1068B of that Act.

Part 3—Resolution payment amounts

9 Amount of resolution payment

(1) For paragraph 3(1)(g) of Schedule 3, the amount of a resolution payment that a person is entitled to be paid in relation to a particular relevant debt of the person is the amount specified in Column 2 of the table which corresponds to the value of the debt that applies under Column 1 (the debt value). (2) Subject to subsection (3), the debt value of a particular relevant debt of the person is the amount that is recorded in the records of Services Australia as at 30 January 2026.

Note: Services Australia was previously known as the Human Services Department and subsection 23(1) of the Social Security Act 1991 defines the Human Services Department as Services Australia.

The debt value of a debt does not include any amount that has been waived in relation to the debt. Any payment by, or on behalf of, a person to reduce the amount of a debt of the person is not to be taken into account in determining the debt value of the debt.

Part 4—Application process, decisions and offers and refusals

Division 1—Applications

10 Applications

Period for making application (1) Subject to subsection (7), a person may make an application for a resolution payment only during the period: (a) starting on 30 January 2026; and (b) ending on 29 January 2027. Requirements for application (2) For paragraph 3(1)(d) of Schedule 3, an application for a resolution payment in relation to a particular relevant debt: (a) must be made by: (i) submitting an application to the Secretary in the approved form; or (ii) making an application to the Secretary orally (whether in person, by telephone or by other means approved by the Secretary); and (b) must contain, or be accompanied by, any information specified by the approved form.

Note: Another person may act for and on behalf of a person who is, or may be, entitled to a resolution payment. See sections 28 (Payment nominees and correspondence nominees), 29 (Other agents) and 30 (Deceased estates).

(3) If a person makes an oral application under subparagraph (2)(a)(ii), the Secretary must: (a) make a written record of the details of the application; and (b) note on the record the date on which the application is made. Combined applications (4) The application may relate to more than one relevant debt. (5) If the application relates to more than one relevant debt, the application is taken to be a separate application for a resolution payment in relation to each relevant debt. One application per relevant debt (6) A person may not make more than one application in respect of a particular relevant debt. Extension of time to make application (7) On a person’s request, the Secretary may allow a person to make an application after 29 January 2027 and before 30 January 2028 if the Secretary is satisfied that special circumstances exist that make it appropriate to do so. (8) If the Secretary decides that special circumstances do not exist, the Secretary must give the person making the request under subsection (7) written notice of the decision and the reasons for the decision. (9) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

11 Additional information

For paragraph 3(1)(e) of Schedule 3, the Secretary may request a person to provide such additional information or documents as the Secretary may reasonably require to make a decision on the person’s application in relation to a particular relevant debt.

(2) A request under subsection (1): (a) may be made in any manner approved by the Secretary; and (b) must specify: (i) that the request is being made under this section; and (ii) if the person’s application relates to more than one relevant debt, the particular relevant debt to which the request relates; and (iii) the nature of the information or document that is requested; and (iv) how the person is to provide the information or document; and (v) the officer (or class of officer) (if any) to whom the information or document is to be provided; and (vi) the period of at least 14 days from the date of the request (the response period) within which the person is to provide the information or document; and (c) inform the person that, in relation to the particular relevant debt: (i) the Secretary may decide not to take any further action in relation to the application until the request is complied with; and (ii) the Secretary may decide the person is not entitled to be paid a resolution payment if the request is not complied with within the response period. (3) The Secretary may decide not to take any further action in relation to a person’s application in relation to a particular relevant debt until the person has complied with any request under subsection (1) in relation to the debt.

Division 2—Decisions

12 Decision on application

For paragraph 3(1)(h) of Schedule 3, a decision on an application under section 10 is to be made by the Secretary.

Notes: A power to make a decision may be delegated under section 234 of the Social Security (Administration) Act 1999.

Note: See also section 13 of this instrument.

(2) In relation to each relevant debt in a person’s application, the Secretary must, depending on the outcome of the assessment of the debt having regard to the requirements of the scheme: (a) decide that the person is entitled to be paid a resolution payment and include in the decision the amount of the payment; or (b) decide that the person is not entitled to be paid a resolution payment. (3) This section does not require the Secretary to make a decision in relation to a relevant debt while the Secretary is waiting for the person to comply with a request under subsection 11(1) in relation to the debt.

Note: A request under section 11 must specify the period within which the person is to provide the requested information or document.

(4) In relation to a relevant debt, if a person does not comply with a request under subsection 11(1) within the response period specified under subparagraph 11(2)(b)(vi), the Secretary may make a decision under paragraph (2)(b) on the basis that the person has failed to provide sufficient information to show that the person is entitled to be paid a resolution payment.

13 Debts of less than $2,000

(1) This section limits section 6A of the Social Security (Administration) Act 1999 and applies in relation to a particular relevant debt in a person’s application only if, in the records of Services Australia, the debt reason code assigned to the debt matches an eligible debt reason code.

Note: Manual assessment otherwise applies.

(2) For subparagraph 3(1)(h)(ii) of Schedule 3 but subject to subsection (3), in relation to each relevant debt in a person’s application, a computer program arranged by the Secretary may be used only to make a decision that the person is entitled to be paid a resolution payment under the scheme and the amount of the payment if all of the following circumstances apply: (a) the debt value of the debt under section 9 is less than $2,000; (b) the debt is taken to be reasonably likely to be attributable to a prescribed income apportionment method; (c) the records of Services Australia do not include a record that the person has been prosecuted for fraud under a law of the Commonwealth in relation to a benefit or payment under a prescribed Act; (d) the person meets the other requirements of the scheme. (3) Despite subsection (2), a computer program may not be used to make a decision in relation to a relevant debt in a person’s application if the application is made: (a) after 29 January 2027, unless the Secretary is satisfied under subsection 10(7) that special circumstances exist; or (b) by a correspondence nominee; or (c) by another person acting as the lawful representative of the person in relation to whom the application is made; or (d) by a personal representative acting under section 30. (4) For paragraph (2)(b), the debt is taken to be reasonably likely to be attributable to a prescribed income apportionment method only if, in the records of Services Australia, the debt reason code assigned to the debt matches an eligible debt reason code. (5) A decision under this section is taken to be a decision of the Secretary. (6) This section does not apply if the application is for the review of a decision under Part 5. (7) In this section:

eligible debt reason code means a code listed in column 2 of the table in Schedule 1.

Division 3—Offers and refusals

14 Offer

(1) For subparagraph 3(1)(h)(iv) and paragraph 3(1)(i) of Schedule 3, if a decision is made under section 12 or 13 that a person is entitled to a resolution payment in relation to a particular relevant debt, the Secretary must, by written notice to the person, make an offer to pay the resolution payment in the amount determined in relation to the debt under section 9. (2) The notice must do the following:

specify the date of the offer;
if the person’s application under section 10 relates to more than one relevant debt, specify the particular relevant debt to which the offer relates;

(c) include the decision that the person is entitled to be paid the resolution payment and explain the reasons for the decision;
(d) include the amount of the resolution payment and the reasons for the determination of that amount;
(e) set out the options for the payment of the resolution payment, which may include how a resolution payment may be applied to reduce the outstanding amount of another debt of the person due to the Commonwealth under a prescribed Act;
(f) inform the person that they may consider obtaining independent advice about whether or not to accept the offer;
(g) explain how to accept or reject the offer;
(h) inform the person that the offer is only open for acceptance for the period of 56 days from the date of the offer (the acceptance period), unless the person is granted an extension of the acceptance period;
(i) explain the effect of the effective acceptance of the offer to be paid the resolution payment, as provided by subitem 2(5) of Schedule 3 or, if an agent is acting on behalf of the person, as provided by subitem 2(6) of Schedule 3;
(j) inform the person that they do not have to accept the offer and that, if the person does not accept the offer by the end of the acceptance period, the offer will expire and be taken to be rejected at that time unless the person is granted an extension of the acceptance period;
(k) inform the person that they may apply for an extension of the acceptance period and explain how to make that application;
(l) inform the person that they may apply for a review of the amount of the resolution payment within 56 days from the date of the offer and explain how to make that application;
(m) inform the person that they may only make one application for a resolution payment in respect of a particular relevant debt.

Note: For the purposes of paragraph (l), requirements for an application for internal review are set out in section 21.

(3) Subsection (2) does not limit the matters that may be dealt with or included in the notice.

Note: For example, if an application relates to more than one relevant debt, the notice may include offers in relation to more than one debt.

(4) The notice may be combined with a notice under section 15.

15 Refusal

(1) For subparagraph 3(1)(h)(iv) of Schedule 3, if a decision is made under section 12 that a person is not entitled to be paid a resolution payment in relation to a particular relevant debt, the Secretary must, by written notice to the person, refuse the application in relation to the debt. (2) The notice must do the following:

specify the date of the refusal;
if the person’s application under section 10 relates to more than one relevant debt, specify the particular relevant debt to which the refusal relates;

(c) include the decision that the person is not entitled to be paid a resolution payment and the reasons for the decision;
(d) inform the person that they may, within a period of 56 days from the date of the refusal (the designated period), apply for a review of the decision and explain how to make that application;
(e) inform the person that they may apply for an extension of the designated period and explain how to make that application.

Note: For the purposes of paragraph (d), requirements for an application for internal review are set out in section 21.

(3) Subsection (2) does not limit the matters that may be dealt with or included in the notice.

Note: For example, if an application relates to more than one relevant debt, the notice may include refusals in relation to more than one debt.

(4) The notice may be combined with a notice under section 14.

Division 4—Extensions

16 Extensions

(1) For paragraph 3(1)(r) of Schedule 3, in relation to a relevant debt, the Secretary may, on application made in accordance with the requirements set out in a notice under section 14 or 15, extend, by 28 days or such longer period as may be decided by the Secretary: (a) the acceptance period for an offer; or (b) the period for applying for a review mentioned in the notice.

The Secretary may grant an extension only if the Secretary considers that special circumstances exist that make it appropriate to do so. The Secretary must give the person who made the application written notice of the Secretary’s decision and the reasons for it. If the Secretary decides that special circumstances do not exist, the notice under subsection (3) must inform the person that they may, within 28 days from the date of the notice, apply for a review of the decision and explain how to make that application. A person may:

(a) make more than one application for an extension of time; and
(b) make an application for an extension of time even if the time specified in paragraph (1)(a) or (b) (as the case may be) has expired.

Division 5—Accepting an offer and payment

17 Accepting an offer

For paragraph 3(1)(j) of Schedule 3, a person who wants to lodge an effective acceptance of an offer for the payment of a resolution payment in relation to a relevant debt must do so in accordance with this section.

(2) The acceptance must: (a) be in the approved form; and (b) if there is more than one relevant debt in relation to which there is an offer, specify which offer is accepted; and (c) be signed in a manner approved by the Secretary; and (d) be lodged with the Secretary: (i) by the end of the acceptance period for the offer (or any extension of that period granted under section 16) unless the Secretary accepts the acceptance under subsection 19(3); and (ii) in accordance with any other requirements set out in the notice under section 14. (3) The acceptance must include, or be accompanied by: (a) an acknowledgement that the person understands the effect of accepting the offer; and (b) an election in the approved form about how the resolution payment should be paid or applied, taking into account subsection 18(2).

18 Methods of payment

(1) This section applies if a person lodges an effective acceptance on their own behalf or on behalf of another person in relation to a relevant debt. (2) For paragraph 3(1)(m) of Schedule 3 and subject to subsection (3), the resolution payment in relation to the debt must, according to the person’s election under paragraph 17(3)(b) be: (a) paid to the bank account nominated in the election; or (b) applied to reduce the outstanding amount of a debt of the person due to the Commonwealth under any prescribed Act.

Note: A payment nominee (see section 28) may nominate the payment nominee’s bank account.

(3) The Secretary may direct that the whole or a part of the resolution payment be paid in a different way to that provided for by the election. If the Secretary gives a direction, the relevant amount must be paid in accordance with the direction.

Division 6—Related provision

19 Deemed rejection and acceptance after initial rejection

For paragraph 3(1)(l) of Schedule 3 and subject to subsections (2) and (3), if a person does not lodge an effective acceptance of an offer in relation to a relevant debt before the end of the acceptance period for the offer, the person is taken to have rejected the offer. If the Secretary extends the acceptance period for an offer in relation to the debt one or more times under section 16, the person is taken to have rejected the offer if the person has not lodged an effective acceptance of the offer before the end of the final extended acceptance period.

(3) The Secretary may, on a person’s request, accept an effective acceptance of an offer: (a) after the end of the acceptance period for the offer if the Secretary considers that special circumstances exist that make it appropriate to do so; or (b) after an initial rejection of the offer if: (i) the person decides to accept the offer after further consideration of the matter; and (ii) the Secretary considers that special circumstances exist that make it appropriate to do so. (4) If the Secretary decides that special circumstances do not exist, the Secretary must give the person making the request under subsection (3) written notice of the decision and the reasons for the decision. (5) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

Part 5—Review

Division 1—Review on Secretary’s initiative

20 Internal review on Secretary’s initiative

(1) For paragraph 3(1)(n) of Schedule 3, the Secretary may, on the Secretary’s own initiative, review a decision made on an application for a resolution payment under this instrument. (2) Without limiting subsection (1), the Secretary may review a decision after a person has accepted an offer to be paid a resolution payment if: (a) it appears to the Secretary that an error has been made in the decision regarding an entitlement or other matter under Schedule 3 or this instrument; or (b) it appears that the person is not entitled for any reason to receive all or part of the resolution payment; or (c) the Secretary has received further information that is relevant to the decision on the application, an entitlement or other matter under Schedule 3 or this instrument; or (d) the Secretary is satisfied that there is some other reasonable ground on which to initiate the review despite the acceptance of the offer. (3) On a review, the Secretary may: (a) affirm the decision; or (b) vary the decision; or (c) set aside the decision and substitute a new decision. (4) The Secretary must give the person in relation to whom the decision is made written notice of the decision and the reasons for the decision. (5) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application. (6) If the decision on the review is that a person is entitled to a resolution payment of a particular amount in relation to a relevant debt: (a) unless subsection 25(3) applies, the notice under subsection (4) must comply with subsection 14(2) (other than paragraph 14(2)(l)); and (b) sections 16 to 19 apply in relation to the person and the debt.

Division 2—Review on application

21 Internal review on application

(1) For paragraph 3(1)(n) of Schedule 3, a person may apply to the Secretary to review a decision made under any of the following provisions: (a) section 12 or 13; (b) subsection 10(7), 16(1) or 19(3); (c) section 20; (d) subsection (3) of this section. (2) Subject to subsection (3), in the case of an application for the review of a decision under section 12, 13 or 20: (a) if the decision that was made resulted in an offer under section 14, the application must be made: (i) before the end of the acceptance period for the offer or, if the Secretary extends the acceptance period one or more times under subsection 16(1), before the end of the final extended acceptance period; and (ii) before the offer is accepted; and (b) if the decision that was made resulted in a refusal under section 15, the application must be made before the end of the designated period under section 15 or, if the Secretary extends the designated period one or more times under subsection 16(1), before the end of the final extended designated period.

The Secretary may allow a person to apply for a review after the end of a period applying under subsection (2) if the Secretary considers that special circumstances exist that make it appropriate to do so. The application must be made by:

submitting an application to the Secretary in the approved form; or
making an application to the Secretary orally (whether in person, by telephone or by other means approved by the Secretary).

If a person makes an oral application under paragraph (4)(b), the Secretary must:

make a written record of the details of the application; and
note on the record the date on which the application is made.

(6) If the Secretary decides that special circumstances do not exist for subsection (3), the Secretary must give the person who wishes to apply for review written notice of the decision and the reasons for the decision. (7) The notice under subsection (6) must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

22 Limited review

(1) The review under this Division of a decision under section 12, 13 or 20 is limited to: (a) whether a debt owed to the Commonwealth gives rise to an entitlement under the scheme; or (b) whether the amount of a resolution payment set out in an offer under section 14, or decided under subsection 20(3), is in accordance with section 9. (2) The review under this Division of a decision under subsection 10(7), 16(1), 19(3) or 21(3) is limited to whether special circumstances exist that make it appropriate for the Secretary to take the action mentioned in the relevant subsection.

23 Decision on review

The Secretary must conduct the review as soon as is reasonably practicable after the application for review has been made. On a review, the Secretary may:

in the case of a review of a decision under section 12 or 20 – affirm or vary the decision or set aside the decision and substitute a new decision; and
in the case of a review of a decision under section 13 as to whether the amount of a resolution payment set out in an offer under section 14 is in accordance with section 9 – affirm or vary the decision or set aside the decision and substitute a new decision; and
in the case of a review of a decision under subsection 10(7) – decide whether or not to allow an application to be made under that subsection; and
in the case of a review of a decision under subsection 16(1) – decide whether or not to grant an extension under that subsection; and
in the case of a review of a decision under subsection 19(3) – decide whether or not to accept an effective acceptance of an offer under that subsection; and
in the case of a review of a decision under subsection 21(3) – decide whether or not to allow an application to be made under that subsection.

The person who conducts the review on behalf of the Secretary must not be the person who made the decision to which the review relates. The person who conducts the review must give the applicant written notice of the decision on the review and the reasons for the decision. If the decision on the review is that a person is entitled to a resolution payment of a particular amount in relation to a relevant debt:

(a) unless subsection 25(3) applies, the notice under subsection (4) must comply with subsection 14(2) (other than paragraph 14(2)(l)); and
(b) sections 16 to 19 apply in relation to the person and the debt; and
(c) sections 20 and 21 do not apply in relation to the decision.

If the decision on the review is that a person is not entitled to a resolution payment, sections 20 and 21 do not apply in relation to the decision.

24 Withdrawal of application for review

(1) Subject to subsection (2), a person who has applied for a review may withdraw the application by: (a) submitting a written notice to the Secretary in the approved form; or (b) contacting the Secretary and withdrawing the application orally (whether in person, by telephone or by other means approved by the Secretary). (2) The application may only be withdrawn before a decision is made under subsection 23(2). (3) If a person orally withdraws an application under paragraph (1)(b), the Secretary must: (a) make a written record of the details of the withdrawal; and (b) note on the record the date on which the withdrawal is made. (4) If the application is withdrawn, the application is taken never to have been made.

Division 3—Related provisions

25 Effect of review on previous offer or refusal

This section applies if, in relation to a relevant debt:

the Secretary decides to review a decision that resulted in:

(i) an offer under section 14 for which there has not been an effective acceptance (a previous offer); or
(ii) a refusal under section 15 (a previous refusal); or

a person applies for a review of a decision that resulted in:

(i) a previous offer; or
(ii) a previous refusal.

The effect of the previous offer or previous refusal is suspended pending the outcome of the review. If, on review, the Secretary affirms the decision that resulted in the previous offer or previous refusal:

the previous offer or previous refusal becomes current again from the date of the notice of the review decision; and
for the previous offer – the number of days remaining in the acceptance period is taken to be 56 days from the date of the notice of the review decision.

(4) If, on review, the Secretary substitutes a new decision for the decision that resulted in the previous offer or previous refusal, the previous offer or previous refusal ceases to be in force. (5) If a person withdraws an application for review: (a) the previous offer or previous refusal becomes current again from the time of the withdrawal; and (b) for the previous offer – at the time of the withdrawal, the number of days remaining in the acceptance period is taken to be the number of days that remained immediately before the application was made.

26 Acceptance of offer may cease to have effect

For paragraph 3(1)(k) of Schedule 3, if it is decided on a review under this Part that a person is not entitled for any reason to receive all or part of a resolution payment in relation to a relevant debt, any effective acceptance of an offer in relation the debt by or on behalf of the person ceases to be in force on and from the date of the review decision.

Part 6—Miscellaneous

27 Approved forms

The Secretary may, in writing, approve one or more forms for the purposes of a provision of this instrument that provides for something to be done in an approved form.

28 Payment nominees and correspondence nominees

For paragraph 3(1)(q) of Schedule 3, Part 3A of the Administration Act applies as if:

a resolution payment were a relevant payment within the meaning of Part 3A of the Administration Act; and a person who is, or may be, entitled to be paid a resolution payment under the scheme (a principal) were a benefit recipient for Division 4 of Part 3A of the Administration Act.

In order to avoid doubt, it is declared as follows:

if, immediately before commencement, a person is the payment nominee of a principal, the person continues as the payment nominee of the principal for the purposes of the operation of the scheme on and from commencement; if, immediately before commencement, a person is the correspondence nominee of a principal, the person continues as the correspondence nominee of the principal for the purposes of the operation of the scheme on and from commencement; a person appointed as the payment nominee of a principal on or after commencement, is the payment nominee of the principal for the purposes of the social security law including the operation of the scheme; a person appointed as the correspondence nominee of a principal on or after commencement, is the correspondence nominee of the principal for the purposes of the social security law including the operation of the scheme.

Note 1: Section 123E of the Administration Act provides for the suspension and revocation of nominee appointments. Any suspension or revocation under that section will be effective immediately for the purposes of the scheme.

Note 2: Section 123B(b) of the Administration Act provides for the Secretary to direct that a payment be made to a payment nominee while Division 4 of Part 3A of the Administration Act does not provide for a correspondence nominee to receive payment. Also, paragraph 17(3)(b) of this instrument requires an election to be provided about how a resolution payment should be applied.

(3) In this section:

Administration Act means the Social Security (Administration) Act 1999.

commencement means the commencement of this instrument.

29 Other agents

(1) For paragraph 3(1)(q) of Schedule 3, section 28 does not limit who may act for or on behalf of a person who is, or may be, entitled to be paid a resolution payment under the scheme (a principal).

Note: For example, a person may be authorised to act under a power of attorney or court order.

(2) In connection with subsection (1), if a person (the agent) acts, or purports to act, for or on behalf of a principal: (a) the Secretary may require the production of specified evidence or other information with respect to the agent’s authority to act for or on behalf of the principal; and (b) Part 3A of the Social Security (Administration) Act 1999 (Part 3A), other than Division 2, applies as if: (i) the agent were a nominee within the meaning of Part 3A; and (ii) a resolution payment were a relevant payment within the meaning of Part 3A; and (iii) the principal were a benefit recipient for Division 4 of Part 3A.

30 Deceased estates

(1) For paragraph 3(1)(q) of Schedule 3, the personal representative of a person who is, or may be, entitled to be paid a resolution payment under the scheme and who has died may: (a) lodge an application for a resolution payment as if the person was still alive and the personal representative was acting on the person’s behalf; and (b) accept or reject an offer as if the person was still alive and the personal representative was acting on the person’s behalf; and (c) take any other step under this instrument as if the person was still alive and the personal representative was acting on the person’s behalf. (2) In this section:

personal representative means the executor or administrator of the estate of a deceased person.

31 Debt recovery

(1) This section applies to a debt due to the Commonwealth under item 5 of Schedule 3. (2) For paragraph 3(1)(o) of Schedule 3, the debt will be treated as if it were a debt arising under the Social Security Act 1991 and recoverable under Chapter 5 of that Act. (3) For paragraph 3(1)(n) of Schedule 3, Parts 4 and 4A of the Social Security (Administration) Act 1999 apply in relation to a decision made under Chapter 5 of the Social Security Act 1991 in relation to the debt.

Schedule 1—Eligible Debt Reason Codes

Note: See section 13.

7 Entitlement criteria

(1) For paragraph 3(1)(f) of Schedule 3, a person is entitled to be paid a resolution payment in relation to a particular relevant debt if it is reasonably likely that the debt is attributable to a prescribed income apportionment method. (2) Subsection (1) applies subject to the person also meeting the criteria at paragraphs 2(2)(a) to (c) of Schedule 3 and the other provisions of this instrument in relation to the debt.

Note: The effect of this section is to qualify the entitlement criterion in paragraph 2(2)(d) of Schedule 3.

8 Exclusion criteria

Purposes of this section

For paragraph 3(1)(f) of Schedule 3, this section specifies criteria that mean a person is not entitled to be paid a resolution payment in relation to a particular relevant debt.

Note: The effect of subsection (1) is to specify exclusion criteria that operate even if the person otherwise satisfies the entitlement criteria.

Person not entitled to be paid under scheme on certain grounds

A person is not entitled to be paid a resolution payment in relation to the debt if the debt is attributable (whether wholly or partly) to fraud that has been found or determined to have been committed in or as a result of criminal proceedings brought under a law of the Commonwealth.

(3) A person is not entitled to be paid a resolution payment in relation to the debt if, before the commencement of this instrument: (a) the debt to the Commonwealth was reviewed; and (b) a new decision was made in relation to the debt; and (c) it was decided or found that the debt to the Commonwealth: (i) did not exist or was equal to zero; or (ii) arose wholly for a reason other than the use of a prescribed income apportionment method. (4) Subparagraph (3)(c)(ii) does not apply if the debt: (a) related to the employment income of the person or of a partner of the person; and (b) was reviewed during a period beginning on 1 October 2020 and ending immediately before the commencement of this instrument. (5) A person is not entitled to be paid a resolution payment in relation to the debt if it has been waived in full by the Commonwealth before 30 January 2026. (6) A person is not entitled to be paid a resolution payment in relation to the debt if it is reasonably likely that the debt is attributable (whether wholly or partly, or directly or indirectly) to the determination of Division 2 work income of the person, or of a partner of the person, using a prescribed income apportionment method and any of the following circumstances apply: (a) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was at or above pension age over one or more periods wholly occurring before 20 September 2009; (b) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was below pension age over one or more periods wholly occurring before 20 September 2003; (c) the debt relates (whether directly or indirectly) to the payment of benefit PP (partnered).

Note: Section 18 of the Social Security Act 1991 defines benefit PP (partnered) as parenting payment whose rate is worked out under the Benefit PP (Partnered) Rate Calculator in section 1068B of that Act.

Contents

Part 1—Preliminary 3

1 Name ...................................................3

2 Commencement.............................................3

3 Authority.................................................3

4 Simplified outline of instrument...................................3

5 Definitions................................................4

6 Other Act relevant to scheme.....................................5

Part 2—Specific entitlement and exclusion criteria 5

7 Entitlement criteria...........................................5

8 Exclusion criteria............................................5

Part 3—Resolution payment amounts 6

9 Amount of resolution payment....................................6

Part 4—Application process, decisions and offers and refusals 7

Division 1—Applications 7

10 Applications..............................................7

11 Additional information........................................8

Division 2—Decisions 9

12 Decision on application........................................9

13 Debts of less than $2,000.......................................9

Division 3—Offers and refusals 10

14 Offer..................................................10

15 Refusal.................................................11

Division 4—Extensions 12

16 Extensions...............................................12

Division 5—Accepting an offer and payment 12

17 Accepting an offer..........................................12

18 Methods of payment.........................................13

Division 6—Related provision 13

19 Deemed rejection and acceptance after initial rejection....................13

Part 5—Review 14

Division 1—Review on Secretary’s initiative 14

20 Internal review on Secretary’s initiative.............................14

Division 2—Review on application 15

21 Internal review on application...................................15

22 Limited review............................................16

23 Decision on review.........................................16

24 Withdrawal of application for review...............................17

Division 3—Related provisions 17

25 Effect of review on previous offer or refusal...........................17

26 Acceptance of offer may cease to have effect..........................18

Part 6—Miscellaneous 18

27 Approved forms...........................................18

28 Payment nominees and correspondence nominees.......................18

29 Other agents.............................................19

30 Deceased estates...........................................19

31 Debt recovery.............................................20

Schedule 1—Eligible Debt Reason Codes 21

Part 1—Preliminary

1 Name

This instrument is the Income Apportionment Resolution Scheme Determination 2025.

2 Commencement

(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.

<table cellspacing="0" cellpadding="0" style="margin-left:5.35pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:407.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement information</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 3</span></p></td></tr><tr><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Provisions</span></p></td><td style="width:209pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement</span></p></td><td style="width:81.45pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Date/Details</span></p></td></tr></thead><tbody><tr><td style="width:95.65pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1. The whole of this instrument</span></p></td><td style="width:209pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The later of:</span></p><ol class="awlist1" style="margin:0pt; padding-left:0pt"><li class="paragraph" style="margin-left:36pt; text-indent:-18pt; font-size:10pt"><span style="width:6.9pt; font:7pt 'Times New Roman'; display:inline-block"></span><span>the day after this instrument is registered; and</span></li><li class="paragraph" style="margin-left:36pt; text-indent:-18pt"><span style="width:5.17pt; font:7pt 'Times New Roman'; display:inline-block"></span><span style="font-size:10pt">30 January 2026.</span></li></ol></td><td style="width:81.45pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span></span></p></td></tr></tbody></table>

Note: 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.

(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.

3 Authority

This instrument is made under item 3 of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

4 Simplified outline of instrument

This instrument sets out provisions for and in relation to the Income Apportionment Resolution Scheme established by force of Schedule 3 to the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

The scheme provides for the payment to a person of an amount of reparation (to be called a resolution payment) if they owe or owed a debt to the Commonwealth under the social security law, the repealed Farm Household Support Act 1992, the family assistance law or the Veterans’ Entitlements Act 1986, and that debt satisfies specified criteria including that the debt arose (whether wholly or partly, or directly or indirectly) because certain work income (whether of the person or a partner of the person) was calculated based on an income apportionment method over a particular period.

A person wishing to participate in the scheme will need to make an application in accordance with the provisions of this instrument and, if the Secretary so decides under the scheme, an offer will be made to the person which the person may decide to accept or reject. The acceptance of an offer will need to be in accordance with this instrument. If an effective acceptance of an offer is lodged under the scheme, the Commonwealth will be released and forever discharged from all liability in relation to a claim that arises as a result (whether directly or indirectly) of how relevant work income was calculated. A person will be able to have a payment nominee or correspondence nominee act on their behalf.

The instrument also provides for the review of decisions under the scheme and for related matters.

5 Definitions

(1) In this instrument:

acceptance period has the meaning given by paragraph 14(2)(h).

Amendment Act means the Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025.

approved form means a form approved under section 27.

correspondence nominee see section 123A of the Social Security (Administration) Act 1999.

effective acceptance means an acceptance that complies with section 17.

payment nominee see section 123A of the Social Security (Administration) Act 1999.

prescribed Act means:

an Act that forms part of the social security law; or
the repealed Farm Household Support Act 1992; or
an Act that forms part of the family assistance law; or
the Veterans’ Entitlements Act 1986.

prescribed income apportionment method means a method described in paragraph 2(2)(d) of Schedule 3.

relevant debt in relation to an entitlement under Schedule 3, means a debt that is referred to in subitem 2(2) of Schedule 3.

Schedule 3 means Schedule 3 to the Amendment Act.

scheme means the Income Apportionment Resolution Scheme established by force of Schedule 3.

(2) An expression used in the Social Security Act 1991 or in Schedule 3 and in this instrument has the same respective meaning in this instrument as it has in that Act or that Schedule.

6 Other Act relevant to scheme

For paragraph 3(1)(a) of Schedule 3, the Veterans’ Entitlements Act 1986 is an Act for the purposes of subparagraph 2(2)(a)(iv) of Schedule 3.

Part 2—Specific entitlement and exclusion criteria

7 Entitlement criteria

(1) For paragraph 3(1)(f) of Schedule 3, a person is entitled to be paid a resolution payment in relation to a particular relevant debt if it is reasonably likely that the debt is attributable to a prescribed income apportionment method. (2) Subsection (1) applies subject to the person also meeting the criteria at paragraphs 2(2)(a) to (c) of Schedule 3 and the other provisions of this instrument in relation to the debt.

Note: The effect of this section is to qualify the entitlement criterion in paragraph 2(2)(d) of Schedule 3.

8 Exclusion criteria

Purposes of this section

For paragraph 3(1)(f) of Schedule 3, this section specifies criteria that mean a person is not entitled to be paid a resolution payment in relation to a particular relevant debt.

Note: The effect of subsection (1) is to specify exclusion criteria that operate even if the person otherwise satisfies the entitlement criteria.

Person not entitled to be paid under scheme on certain grounds

A person is not entitled to be paid a resolution payment in relation to the debt if the debt is attributable (whether wholly or partly) to fraud that has been found or determined to have been committed in or as a result of criminal proceedings brought under a law of the Commonwealth.

(3) A person is not entitled to be paid a resolution payment in relation to the debt if, before the commencement of this instrument: (a) the debt to the Commonwealth was reviewed; and (b) a new decision was made in relation to the debt; and (c) it was decided or found that the debt to the Commonwealth: (i) did not exist or was equal to zero; or (ii) arose wholly for a reason other than the use of a prescribed income apportionment method. (4) Subparagraph (3)(c)(ii) does not apply if the debt: (a) related to the employment income of the person or of a partner of the person; and (b) was reviewed during a period beginning on 1 October 2020 and ending immediately before the commencement of this instrument. (5) A person is not entitled to be paid a resolution payment in relation to the debt if it has been waived in full by the Commonwealth before 30 January 2026. (6) A person is not entitled to be paid a resolution payment in relation to the debt if it is reasonably likely that the debt is attributable (whether wholly or partly, or directly or indirectly) to the determination of Division 2 work income of the person, or of a partner of the person, using a prescribed income apportionment method and any of the following circumstances apply: (a) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was at or above pension age over one or more periods wholly occurring before 20 September 2009; (b) the debt relates (whether directly or indirectly) to the payment of a pension to the person who was below pension age over one or more periods wholly occurring before 20 September 2003; (c) the debt relates (whether directly or indirectly) to the payment of benefit PP (partnered).

Note: Section 18 of the Social Security Act 1991 defines benefit PP (partnered) as parenting payment whose rate is worked out under the Benefit PP (Partnered) Rate Calculator in section 1068B of that Act.

Part 3—Resolution payment amounts

9 Amount of resolution payment

(1) For paragraph 3(1)(g) of Schedule 3, the amount of a resolution payment that a person is entitled to be paid in relation to a particular relevant debt of the person is the amount specified in Column 2 of the table which corresponds to the value of the debt that applies under Column 1 (the debt value). (2) Subject to subsection (3), the debt value of a particular relevant debt of the person is the amount that is recorded in the records of Services Australia as at 30 January 2026.

Note: Services Australia was previously known as the Human Services Department and subsection 23(1) of the Social Security Act 1991 defines the Human Services Department as Services Australia.

The debt value of a debt does not include any amount that has been waived in relation to the debt. Any payment by, or on behalf of, a person to reduce the amount of a debt of the person is not to be taken into account in determining the debt value of the debt.

Part 4—Application process, decisions and offers and refusals

Division 1—Applications

10 Applications

Period for making application (1) Subject to subsection (7), a person may make an application for a resolution payment only during the period: (a) starting on 30 January 2026; and (b) ending on 29 January 2027. Requirements for application (2) For paragraph 3(1)(d) of Schedule 3, an application for a resolution payment in relation to a particular relevant debt: (a) must be made by: (i) submitting an application to the Secretary in the approved form; or (ii) making an application to the Secretary orally (whether in person, by telephone or by other means approved by the Secretary); and (b) must contain, or be accompanied by, any information specified by the approved form.

Note: Another person may act for and on behalf of a person who is, or may be, entitled to a resolution payment. See sections 28 (Payment nominees and correspondence nominees), 29 (Other agents) and 30 (Deceased estates).

(3) If a person makes an oral application under subparagraph (2)(a)(ii), the Secretary must: (a) make a written record of the details of the application; and (b) note on the record the date on which the application is made. Combined applications (4) The application may relate to more than one relevant debt. (5) If the application relates to more than one relevant debt, the application is taken to be a separate application for a resolution payment in relation to each relevant debt. One application per relevant debt (6) A person may not make more than one application in respect of a particular relevant debt. Extension of time to make application (7) On a person’s request, the Secretary may allow a person to make an application after 29 January 2027 and before 30 January 2028 if the Secretary is satisfied that special circumstances exist that make it appropriate to do so. (8) If the Secretary decides that special circumstances do not exist, the Secretary must give the person making the request under subsection (7) written notice of the decision and the reasons for the decision. (9) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

11 Additional information

For paragraph 3(1)(e) of Schedule 3, the Secretary may request a person to provide such additional information or documents as the Secretary may reasonably require to make a decision on the person’s application in relation to a particular relevant debt.

(2) A request under subsection (1): (a) may be made in any manner approved by the Secretary; and (b) must specify: (i) that the request is being made under this section; and (ii) if the person’s application relates to more than one relevant debt, the particular relevant debt to which the request relates; and (iii) the nature of the information or document that is requested; and (iv) how the person is to provide the information or document; and (v) the officer (or class of officer) (if any) to whom the information or document is to be provided; and (vi) the period of at least 14 days from the date of the request (the response period) within which the person is to provide the information or document; and (c) inform the person that, in relation to the particular relevant debt: (i) the Secretary may decide not to take any further action in relation to the application until the request is complied with; and (ii) the Secretary may decide the person is not entitled to be paid a resolution payment if the request is not complied with within the response period. (3) The Secretary may decide not to take any further action in relation to a person’s application in relation to a particular relevant debt until the person has complied with any request under subsection (1) in relation to the debt.

Division 2—Decisions

12 Decision on application

For paragraph 3(1)(h) of Schedule 3, a decision on an application under section 10 is to be made by the Secretary.

Notes: A power to make a decision may be delegated under section 234 of the Social Security (Administration) Act 1999.

Note: See also section 13 of this instrument.

(2) In relation to each relevant debt in a person’s application, the Secretary must, depending on the outcome of the assessment of the debt having regard to the requirements of the scheme: (a) decide that the person is entitled to be paid a resolution payment and include in the decision the amount of the payment; or (b) decide that the person is not entitled to be paid a resolution payment. (3) This section does not require the Secretary to make a decision in relation to a relevant debt while the Secretary is waiting for the person to comply with a request under subsection 11(1) in relation to the debt.

Note: A request under section 11 must specify the period within which the person is to provide the requested information or document.

(4) In relation to a relevant debt, if a person does not comply with a request under subsection 11(1) within the response period specified under subparagraph 11(2)(b)(vi), the Secretary may make a decision under paragraph (2)(b) on the basis that the person has failed to provide sufficient information to show that the person is entitled to be paid a resolution payment.

13 Debts of less than $2,000

(1) This section limits section 6A of the Social Security (Administration) Act 1999 and applies in relation to a particular relevant debt in a person’s application only if, in the records of Services Australia, the debt reason code assigned to the debt matches an eligible debt reason code.

Note: Manual assessment otherwise applies.

(2) For subparagraph 3(1)(h)(ii) of Schedule 3 but subject to subsection (3), in relation to each relevant debt in a person’s application, a computer program arranged by the Secretary may be used only to make a decision that the person is entitled to be paid a resolution payment under the scheme and the amount of the payment if all of the following circumstances apply: (a) the debt value of the debt under section 9 is less than $2,000; (b) the debt is taken to be reasonably likely to be attributable to a prescribed income apportionment method; (c) the records of Services Australia do not include a record that the person has been prosecuted for fraud under a law of the Commonwealth in relation to a benefit or payment under a prescribed Act; (d) the person meets the other requirements of the scheme. (3) Despite subsection (2), a computer program may not be used to make a decision in relation to a relevant debt in a person’s application if the application is made: (a) after 29 January 2027, unless the Secretary is satisfied under subsection 10(7) that special circumstances exist; or (b) by a correspondence nominee; or (c) by another person acting as the lawful representative of the person in relation to whom the application is made; or (d) by a personal representative acting under section 30. (4) For paragraph (2)(b), the debt is taken to be reasonably likely to be attributable to a prescribed income apportionment method only if, in the records of Services Australia, the debt reason code assigned to the debt matches an eligible debt reason code. (5) A decision under this section is taken to be a decision of the Secretary. (6) This section does not apply if the application is for the review of a decision under Part 5. (7) In this section:

eligible debt reason code means a code listed in column 2 of the table in Schedule 1.

Division 3—Offers and refusals

14 Offer

(1) For subparagraph 3(1)(h)(iv) and paragraph 3(1)(i) of Schedule 3, if a decision is made under section 12 or 13 that a person is entitled to a resolution payment in relation to a particular relevant debt, the Secretary must, by written notice to the person, make an offer to pay the resolution payment in the amount determined in relation to the debt under section 9. (2) The notice must do the following:

specify the date of the offer;
if the person’s application under section 10 relates to more than one relevant debt, specify the particular relevant debt to which the offer relates;

(c) include the decision that the person is entitled to be paid the resolution payment and explain the reasons for the decision;
(d) include the amount of the resolution payment and the reasons for the determination of that amount;
(e) set out the options for the payment of the resolution payment, which may include how a resolution payment may be applied to reduce the outstanding amount of another debt of the person due to the Commonwealth under a prescribed Act;
(f) inform the person that they may consider obtaining independent advice about whether or not to accept the offer;
(g) explain how to accept or reject the offer;
(h) inform the person that the offer is only open for acceptance for the period of 56 days from the date of the offer (the acceptance period), unless the person is granted an extension of the acceptance period;
(i) explain the effect of the effective acceptance of the offer to be paid the resolution payment, as provided by subitem 2(5) of Schedule 3 or, if an agent is acting on behalf of the person, as provided by subitem 2(6) of Schedule 3;
(j) inform the person that they do not have to accept the offer and that, if the person does not accept the offer by the end of the acceptance period, the offer will expire and be taken to be rejected at that time unless the person is granted an extension of the acceptance period;
(k) inform the person that they may apply for an extension of the acceptance period and explain how to make that application;
(l) inform the person that they may apply for a review of the amount of the resolution payment within 56 days from the date of the offer and explain how to make that application;
(m) inform the person that they may only make one application for a resolution payment in respect of a particular relevant debt.

Note: For the purposes of paragraph (l), requirements for an application for internal review are set out in section 21.

(3) Subsection (2) does not limit the matters that may be dealt with or included in the notice.

Note: For example, if an application relates to more than one relevant debt, the notice may include offers in relation to more than one debt.

(4) The notice may be combined with a notice under section 15.

15 Refusal

(1) For subparagraph 3(1)(h)(iv) of Schedule 3, if a decision is made under section 12 that a person is not entitled to be paid a resolution payment in relation to a particular relevant debt, the Secretary must, by written notice to the person, refuse the application in relation to the debt. (2) The notice must do the following:

specify the date of the refusal;
if the person’s application under section 10 relates to more than one relevant debt, specify the particular relevant debt to which the refusal relates;

(c) include the decision that the person is not entitled to be paid a resolution payment and the reasons for the decision;
(d) inform the person that they may, within a period of 56 days from the date of the refusal (the designated period), apply for a review of the decision and explain how to make that application;
(e) inform the person that they may apply for an extension of the designated period and explain how to make that application.

Note: For the purposes of paragraph (d), requirements for an application for internal review are set out in section 21.

(3) Subsection (2) does not limit the matters that may be dealt with or included in the notice.

Note: For example, if an application relates to more than one relevant debt, the notice may include refusals in relation to more than one debt.

(4) The notice may be combined with a notice under section 14.

Division 4—Extensions

16 Extensions

(1) For paragraph 3(1)(r) of Schedule 3, in relation to a relevant debt, the Secretary may, on application made in accordance with the requirements set out in a notice under section 14 or 15, extend, by 28 days or such longer period as may be decided by the Secretary: (a) the acceptance period for an offer; or (b) the period for applying for a review mentioned in the notice.

The Secretary may grant an extension only if the Secretary considers that special circumstances exist that make it appropriate to do so. The Secretary must give the person who made the application written notice of the Secretary’s decision and the reasons for it. If the Secretary decides that special circumstances do not exist, the notice under subsection (3) must inform the person that they may, within 28 days from the date of the notice, apply for a review of the decision and explain how to make that application. A person may:

(a) make more than one application for an extension of time; and
(b) make an application for an extension of time even if the time specified in paragraph (1)(a) or (b) (as the case may be) has expired.

Division 5—Accepting an offer and payment

17 Accepting an offer

For paragraph 3(1)(j) of Schedule 3, a person who wants to lodge an effective acceptance of an offer for the payment of a resolution payment in relation to a relevant debt must do so in accordance with this section.

(2) The acceptance must: (a) be in the approved form; and (b) if there is more than one relevant debt in relation to which there is an offer, specify which offer is accepted; and (c) be signed in a manner approved by the Secretary; and (d) be lodged with the Secretary: (i) by the end of the acceptance period for the offer (or any extension of that period granted under section 16) unless the Secretary accepts the acceptance under subsection 19(3); and (ii) in accordance with any other requirements set out in the notice under section 14. (3) The acceptance must include, or be accompanied by: (a) an acknowledgement that the person understands the effect of accepting the offer; and (b) an election in the approved form about how the resolution payment should be paid or applied, taking into account subsection 18(2).

18 Methods of payment

(1) This section applies if a person lodges an effective acceptance on their own behalf or on behalf of another person in relation to a relevant debt. (2) For paragraph 3(1)(m) of Schedule 3 and subject to subsection (3), the resolution payment in relation to the debt must, according to the person’s election under paragraph 17(3)(b) be: (a) paid to the bank account nominated in the election; or (b) applied to reduce the outstanding amount of a debt of the person due to the Commonwealth under any prescribed Act.

Note: A payment nominee (see section 28) may nominate the payment nominee’s bank account.

(3) The Secretary may direct that the whole or a part of the resolution payment be paid in a different way to that provided for by the election. If the Secretary gives a direction, the relevant amount must be paid in accordance with the direction.

Division 6—Related provision

19 Deemed rejection and acceptance after initial rejection

For paragraph 3(1)(l) of Schedule 3 and subject to subsections (2) and (3), if a person does not lodge an effective acceptance of an offer in relation to a relevant debt before the end of the acceptance period for the offer, the person is taken to have rejected the offer. If the Secretary extends the acceptance period for an offer in relation to the debt one or more times under section 16, the person is taken to have rejected the offer if the person has not lodged an effective acceptance of the offer before the end of the final extended acceptance period.

(3) The Secretary may, on a person’s request, accept an effective acceptance of an offer: (a) after the end of the acceptance period for the offer if the Secretary considers that special circumstances exist that make it appropriate to do so; or (b) after an initial rejection of the offer if: (i) the person decides to accept the offer after further consideration of the matter; and (ii) the Secretary considers that special circumstances exist that make it appropriate to do so. (4) If the Secretary decides that special circumstances do not exist, the Secretary must give the person making the request under subsection (3) written notice of the decision and the reasons for the decision. (5) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

Part 5—Review

Division 1—Review on Secretary’s initiative

20 Internal review on Secretary’s initiative

(1) For paragraph 3(1)(n) of Schedule 3, the Secretary may, on the Secretary’s own initiative, review a decision made on an application for a resolution payment under this instrument. (2) Without limiting subsection (1), the Secretary may review a decision after a person has accepted an offer to be paid a resolution payment if: (a) it appears to the Secretary that an error has been made in the decision regarding an entitlement or other matter under Schedule 3 or this instrument; or (b) it appears that the person is not entitled for any reason to receive all or part of the resolution payment; or (c) the Secretary has received further information that is relevant to the decision on the application, an entitlement or other matter under Schedule 3 or this instrument; or (d) the Secretary is satisfied that there is some other reasonable ground on which to initiate the review despite the acceptance of the offer. (3) On a review, the Secretary may: (a) affirm the decision; or (b) vary the decision; or (c) set aside the decision and substitute a new decision. (4) The Secretary must give the person in relation to whom the decision is made written notice of the decision and the reasons for the decision. (5) The notice must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application. (6) If the decision on the review is that a person is entitled to a resolution payment of a particular amount in relation to a relevant debt: (a) unless subsection 25(3) applies, the notice under subsection (4) must comply with subsection 14(2) (other than paragraph 14(2)(l)); and (b) sections 16 to 19 apply in relation to the person and the debt.

Division 2—Review on application

21 Internal review on application

(1) For paragraph 3(1)(n) of Schedule 3, a person may apply to the Secretary to review a decision made under any of the following provisions: (a) section 12 or 13; (b) subsection 10(7), 16(1) or 19(3); (c) section 20; (d) subsection (3) of this section. (2) Subject to subsection (3), in the case of an application for the review of a decision under section 12, 13 or 20: (a) if the decision that was made resulted in an offer under section 14, the application must be made: (i) before the end of the acceptance period for the offer or, if the Secretary extends the acceptance period one or more times under subsection 16(1), before the end of the final extended acceptance period; and (ii) before the offer is accepted; and (b) if the decision that was made resulted in a refusal under section 15, the application must be made before the end of the designated period under section 15 or, if the Secretary extends the designated period one or more times under subsection 16(1), before the end of the final extended designated period.

The Secretary may allow a person to apply for a review after the end of a period applying under subsection (2) if the Secretary considers that special circumstances exist that make it appropriate to do so. The application must be made by:

submitting an application to the Secretary in the approved form; or
making an application to the Secretary orally (whether in person, by telephone or by other means approved by the Secretary).

If a person makes an oral application under paragraph (4)(b), the Secretary must:

make a written record of the details of the application; and
note on the record the date on which the application is made.

(6) If the Secretary decides that special circumstances do not exist for subsection (3), the Secretary must give the person who wishes to apply for review written notice of the decision and the reasons for the decision. (7) The notice under subsection (6) must inform the person that they may, within 28 days after the date of the notice, apply for a review of the decision and explain how to make that application.

22 Limited review

(1) The review under this Division of a decision under section 12, 13 or 20 is limited to: (a) whether a debt owed to the Commonwealth gives rise to an entitlement under the scheme; or (b) whether the amount of a resolution payment set out in an offer under section 14, or decided under subsection 20(3), is in accordance with section 9. (2) The review under this Division of a decision under subsection 10(7), 16(1), 19(3) or 21(3) is limited to whether special circumstances exist that make it appropriate for the Secretary to take the action mentioned in the relevant subsection.

23 Decision on review

The Secretary must conduct the review as soon as is reasonably practicable after the application for review has been made. On a review, the Secretary may:

in the case of a review of a decision under section 12 or 20 – affirm or vary the decision or set aside the decision and substitute a new decision; and
in the case of a review of a decision under section 13 as to whether the amount of a resolution payment set out in an offer under section 14 is in accordance with section 9 – affirm or vary the decision or set aside the decision and substitute a new decision; and
in the case of a review of a decision under subsection 10(7) – decide whether or not to allow an application to be made under that subsection; and
in the case of a review of a decision under subsection 16(1) – decide whether or not to grant an extension under that subsection; and
in the case of a review of a decision under subsection 19(3) – decide whether or not to accept an effective acceptance of an offer under that subsection; and
in the case of a review of a decision under subsection 21(3) – decide whether or not to allow an application to be made under that subsection.

The person who conducts the review on behalf of the Secretary must not be the person who made the decision to which the review relates. The person who conducts the review must give the applicant written notice of the decision on the review and the reasons for the decision. If the decision on the review is that a person is entitled to a resolution payment of a particular amount in relation to a relevant debt:

(a) unless subsection 25(3) applies, the notice under subsection (4) must comply with subsection 14(2) (other than paragraph 14(2)(l)); and
(b) sections 16 to 19 apply in relation to the person and the debt; and
(c) sections 20 and 21 do not apply in relation to the decision.

If the decision on the review is that a person is not entitled to a resolution payment, sections 20 and 21 do not apply in relation to the decision.

24 Withdrawal of application for review

(1) Subject to subsection (2), a person who has applied for a review may withdraw the application by: (a) submitting a written notice to the Secretary in the approved form; or (b) contacting the Secretary and withdrawing the application orally (whether in person, by telephone or by other means approved by the Secretary). (2) The application may only be withdrawn before a decision is made under subsection 23(2). (3) If a person orally withdraws an application under paragraph (1)(b), the Secretary must: (a) make a written record of the details of the withdrawal; and (b) note on the record the date on which the withdrawal is made. (4) If the application is withdrawn, the application is taken never to have been made.

Division 3—Related provisions

25 Effect of review on previous offer or refusal

This section applies if, in relation to a relevant debt:

the Secretary decides to review a decision that resulted in:

(i) an offer under section 14 for which there has not been an effective acceptance (a previous offer); or
(ii) a refusal under section 15 (a previous refusal); or

a person applies for a review of a decision that resulted in:

(i) a previous offer; or
(ii) a previous refusal.

The effect of the previous offer or previous refusal is suspended pending the outcome of the review. If, on review, the Secretary affirms the decision that resulted in the previous offer or previous refusal:

the previous offer or previous refusal becomes current again from the date of the notice of the review decision; and
for the previous offer – the number of days remaining in the acceptance period is taken to be 56 days from the date of the notice of the review decision.

(4) If, on review, the Secretary substitutes a new decision for the decision that resulted in the previous offer or previous refusal, the previous offer or previous refusal ceases to be in force. (5) If a person withdraws an application for review: (a) the previous offer or previous refusal becomes current again from the time of the withdrawal; and (b) for the previous offer – at the time of the withdrawal, the number of days remaining in the acceptance period is taken to be the number of days that remained immediately before the application was made.

26 Acceptance of offer may cease to have effect

For paragraph 3(1)(k) of Schedule 3, if it is decided on a review under this Part that a person is not entitled for any reason to receive all or part of a resolution payment in relation to a relevant debt, any effective acceptance of an offer in relation the debt by or on behalf of the person ceases to be in force on and from the date of the review decision.

Part 6—Miscellaneous

27 Approved forms

The Secretary may, in writing, approve one or more forms for the purposes of a provision of this instrument that provides for something to be done in an approved form.

28 Payment nominees and correspondence nominees

For paragraph 3(1)(q) of Schedule 3, Part 3A of the Administration Act applies as if:

a resolution payment were a relevant payment within the meaning of Part 3A of the Administration Act; and a person who is, or may be, entitled to be paid a resolution payment under the scheme (a principal) were a benefit recipient for Division 4 of Part 3A of the Administration Act.

In order to avoid doubt, it is declared as follows:

if, immediately before commencement, a person is the payment nominee of a principal, the person continues as the payment nominee of the principal for the purposes of the operation of the scheme on and from commencement; if, immediately before commencement, a person is the correspondence nominee of a principal, the person continues as the correspondence nominee of the principal for the purposes of the operation of the scheme on and from commencement; a person appointed as the payment nominee of a principal on or after commencement, is the payment nominee of the principal for the purposes of the social security law including the operation of the scheme; a person appointed as the correspondence nominee of a principal on or after commencement, is the correspondence nominee of the principal for the purposes of the social security law including the operation of the scheme.

Note 1: Section 123E of the Administration Act provides for the suspension and revocation of nominee appointments. Any suspension or revocation under that section will be effective immediately for the purposes of the scheme.

Note 2: Section 123B(b) of the Administration Act provides for the Secretary to direct that a payment be made to a payment nominee while Division 4 of Part 3A of the Administration Act does not provide for a correspondence nominee to receive payment. Also, paragraph 17(3)(b) of this instrument requires an election to be provided about how a resolution payment should be applied.

(3) In this section:

Administration Act means the Social Security (Administration) Act 1999.

commencement means the commencement of this instrument.

29 Other agents

(1) For paragraph 3(1)(q) of Schedule 3, section 28 does not limit who may act for or on behalf of a person who is, or may be, entitled to be paid a resolution payment under the scheme (a principal).

Note: For example, a person may be authorised to act under a power of attorney or court order.

(2) In connection with subsection (1), if a person (the agent) acts, or purports to act, for or on behalf of a principal: (a) the Secretary may require the production of specified evidence or other information with respect to the agent’s authority to act for or on behalf of the principal; and (b) Part 3A of the Social Security (Administration) Act 1999 (Part 3A), other than Division 2, applies as if: (i) the agent were a nominee within the meaning of Part 3A; and (ii) a resolution payment were a relevant payment within the meaning of Part 3A; and (iii) the principal were a benefit recipient for Division 4 of Part 3A.

30 Deceased estates

(1) For paragraph 3(1)(q) of Schedule 3, the personal representative of a person who is, or may be, entitled to be paid a resolution payment under the scheme and who has died may: (a) lodge an application for a resolution payment as if the person was still alive and the personal representative was acting on the person’s behalf; and (b) accept or reject an offer as if the person was still alive and the personal representative was acting on the person’s behalf; and (c) take any other step under this instrument as if the person was still alive and the personal representative was acting on the person’s behalf. (2) In this section:

personal representative means the executor or administrator of the estate of a deceased person.

31 Debt recovery

(1) This section applies to a debt due to the Commonwealth under item 5 of Schedule 3. (2) For paragraph 3(1)(o) of Schedule 3, the debt will be treated as if it were a debt arising under the Social Security Act 1991 and recoverable under Chapter 5 of that Act. (3) For paragraph 3(1)(n) of Schedule 3, Parts 4 and 4A of the Social Security (Administration) Act 1999 apply in relation to a decision made under Chapter 5 of the Social Security Act 1991 in relation to the debt.

Schedule 1—Eligible Debt Reason Codes

Note: See section 13.