95Allocation of recovered amounts between State debts

#### 95 Allocation of recovered amounts between State debts 95 Allocation of recovered amounts between State debts > > (1) If more than one State debt is payable under a debt recovery order, and the amount recovered is insufficient to satisfy all of the State debts— > > > > > (a) tax debts have priority over all other State debts, and > > > > > (b) tax debts and grant debts have priority over referable debts. > > > (2) Accordingly, the amount recovered is to be applied as follows— > > > > > (a) firstly, towards payment of tax debts, > > > > > (b) secondly, towards payment of grant debts, > > > > > (c) thirdly, towards payment of referable debts. > > > (3) If there is more than one tax debt, and the amount recovered is insufficient to satisfy all of them, the amount recovered is to be allocated pro rata between those tax debts. > > > (4) If there is more than one grant debt, and the amount recovered is insufficient, after payment of any tax debts, to satisfy all of the grant debts, the amount recovered is to be allocated pro rata between those grant debts. > > > (5) If there is more than one referable debt, priority between those debts is determined on the basis of the referral date, with an earlier referral date taking priority over a later referral date. > > > (6) Accordingly, the amount recovered is to be applied firstly towards payment of the referable debt with the oldest referral date, next towards payment of the referable debt with the next oldest referral date, and so on. > > > (7) The Chief Commissioner may, at his or her discretion, apply any amount recovered under a debt recovery order otherwise than as provided for by this section, including by applying it to payment of a debt payable under another debt recovery order, having regard to any of the following— > > > > > (a) the wishes of the debtor, > > > > > (b) the nature of the debt, > > > > > (c) the consequences of non-payment of the debt, > > > > > (d) the date on which the debt became payable, > > > > > (e) for a referable debt—the limitation period that applies to the debt under the [Limitation Act 1969](/view/html/inforce/current/act-1969-031). > > > (8) The Chief Commissioner is to exercise that discretion in accordance with the debt recovery guidelines. > > **s 95:** Am 2024 No 90, Sch 7\[13\] \[14\].