Managing Debt

This page is about requirements for pursuing debts to the Commonwealth.

It is relevant to accountable authorities and officials of non-corporate Commonwealth entities.
 

When do I have to pursue a debt owed to the Commonwealth?

Accountable authorities are required to promote the financial sustainability and the proper use and management of public resources of their entity.

Accountable authorities:

  • are required to pursue recovery of debts owed to the Commonwealth
  • can modify the terms and conditions on which an amount owing to the Commonwealth is to be paid.
     

When do I not have to pursue a debt owed to the Commonwealth?

An accountable authority can choose not to pursue the recovery of a debt to the Commonwealth where:

  • an Act authorises non-recovery
  • pursuing recovery of the debt is not economical, or
  • the debt is not legally recoverable.

A decision not to pursue recovery of a debt does not waive the debt. If the debtor’s circumstances change in the future, the Commonwealth can reinstate and pursue recovery of the debt.

Only the Finance Minister can extinguish an amount owing to the Commonwealth, unless it can be extinguished under other legislation.
 

Finance Minister Delegation

The Finance Minister has delegated to accountable authorities of non-corporate Commonwealth entities, the power to change the terms and conditions on which an amount owing to the Commonwealth is to be paid.


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