Social Security Act 1964

  • not the latest version
  • This version was replaced on 8 February 2017 to make corrections to sections 3(1), 11, 11A(4), 61CF(2)(e), 61EA(2), 71A(4), 72(b), 74(1)(d), 86(2), 104A, 120(3), and Schedules 4, 18, 27, and 28 under section 25(1)(f), (i), (j)(ii), (iii), (iv), and (k) of the Legislation Act 2012.
86A Deduction notices for debt

(1)

If an amount of money that is a debt due to the Crown referred to in section 85A and that is subject to recovery under section 86(1) (chief executive’s duty to recover debt referred to in section 85A) (including, subject to section 86(2B), any penalty under section 86(2)) is not paid by the expiration of the tenth day after the day on which notice of the debt is delivered or posted to that person (whether or not the notice is received by that person), the chief executive may issue, in writing, a deduction notice requiring any other person to deduct the amount due from any sum that is payable or becomes payable, until the deduction notice is revoked, by that other person whether—

(a)

on his or her or its own account; or

(b)

as an agent; or

(c)

as a trustee; or

(d)

for any other reason—

to the person from whom that money may be recovered as a debt due to the Crown (in this section and in sections 86C to 86I referred to as the debtor).

(1A)

For the avoidance of doubt, it is declared that a deduction notice may be issued under subsection (1), despite the fact that the debt to the Crown under this Act may not be recovered by civil action in a court of law because of the Limitation Act 2010.

(1B)

A deduction notice may be issued under subsection (1) to the Accident Compensation Corporation requiring the Corporation to deduct the amount due from any weekly compensation in respect of loss of earnings or loss of potential earning capacity that is payable, or becomes payable, to the debtor by the Corporation under the Accident Compensation Act 2001.

(1C)

A deduction notice under subsection (1) may be issued to recover—

(a)

any amount that may be recovered as a debt due to the Crown under section 27X (as saved by section 256(1) of the Child Support Act 1991):

(b)

any amount of maintenance debt (within the meaning of section 61CA).

(2)

The chief executive shall not issue a deduction notice under subsection (1) unless the chief executive has taken some other reasonably practicable steps to recover the debt, but nothing in this subsection shall require the chief executive to take proceedings in any court to recover the debt before issuing a deduction notice.

(3)

The chief executive shall specify in the deduction notice—

(a)

whether the deduction is to be made as a lump sum or by instalments; and

(b)

the time or times by which the person to whom the deduction notice is issued must pay the amounts deducted to the department; and

(c)

the date on which the deduction notice shall take effect, being a date not earlier than the date on which it was issued.

(4)

The chief executive may revoke a deduction notice at any time by giving notice in writing to the person to whom the deduction notice was issued, or by issuing a new deduction notice, and, at the request of the debtor, the chief executive shall revoke the deduction notice if he or she is satisfied that the amount due has been paid.

(5)

The chief executive shall issue a copy of the deduction notice to the debtor at his or her last known place of residence or business.

(6)

Every person to whom a deduction notice is issued shall, on request, issue to the debtor a statement in writing of any amount deducted, and of the purpose for which it was made.

(7)

Every deduction notice shall be subject to sections 86G to 86I.

Section 86A: replaced, on 30 June 1993, by section 26 of the Social Security Amendment Act (No 3) 1993 (1993 No 57).

Section 86A(1): amended, on 7 July 2014, by section 23(1) of the Social Security (Fraud Measures and Debt Recovery) Amendment Act 2014 (2014 No 21).

Section 86A(1): amended, on 1 October 1998, by section 11 of the Employment Services and Income Support (Integrated Administration) Act 1998 (1998 No 96).

Section 86A(1A): inserted, on 17 September 1997, by section 23(2) of the Social Security Amendment Act (No 4) 1997 (1997 No 63).

Section 86A(1A): amended, on 1 January 2011, by section 58 of the Limitation Act 2010 (2010 No 110).

Section 86A(1B): replaced, on 1 April 2002, by section 337(1) of the Accident Compensation Act 2001 (2001 No 49).

Section 86A(1B): amended, on 3 March 2010, pursuant to section 5(1)(b) of the Accident Compensation Amendment Act 2010 (2010 No 1).

Section 86A(1C): inserted, on 17 September 1997, by section 23(2) of the Social Security Amendment Act (No 4) 1997 (1997 No 63).

Section 86A(2): amended, on 7 July 2014, by section 23(2) of the Social Security (Fraud Measures and Debt Recovery) Amendment Act 2014 (2014 No 21).

Section 86A(2): amended, on 1 October 1998, by section 11 of the Employment Services and Income Support (Integrated Administration) Act 1998 (1998 No 96).

Section 86A(3): amended, on 1 October 1998, by section 11 of the Employment Services and Income Support (Integrated Administration) Act 1998 (1998 No 96).

Section 86A(4): amended, on 1 October 1998, by section 11 of the Employment Services and Income Support (Integrated Administration) Act 1998 (1998 No 96).

Section 86A(5): amended, on 1 October 1998, by section 11 of the Employment Services and Income Support (Integrated Administration) Act 1998 (1998 No 96).