Senator Woodley asked the Minister for Social Security, upon notice, on 16 April 1996:

For the most recent 12 months for which figures are available:

(1) What is the total number and amount of overpayments made by the department.

(2) How many and what amount of these overpayments were due to: (a) administrative error; (b) alleged fraud; and (c) other reasons (please specify where possible).

Senator Newman —The answer to the honourable senator's question is as follows:

(1) In the 12 month period from 1 April 1995 to 31 March 1996 there were 675,684 overpayments raised that resulted in legally recoverable debts under the Social Security Act 1991 (the Act) with a value of $359.81M.

(2)(a) It is not possible to provide the information requested. However, where debts are due solely to administrative error and the payments were received in good faith, the Act provides that recovery must be waived. There were 13,930 debts with a value of $8.32M waived due to administrative error in the 12 month period from 1 April 1995 to 31 March 1996. These waivers will include debts recorded in earlier periods.

(2)(b) There were 200,037 debts worth $184.54M recorded as a result of a false statement or false representation, or because the recipient failed to comply with a provision of the Social Security Act 1991. Although these debts involve some element of `fault' on the recipient's part, they arise regardless of intent, that is they do not necessarily imply a deliberate attempt to defraud the Department.

(2)(c) Other major reasons or categories of debts are described below:

Customers transferring to other Social Security payments with overlapping entitlements accounted for 60,824 debts worth $52.62M.

Loss of qualification for the payment being made accounted for 56,766 debts worth $32.5M.

Customers ceasing to receive Jobsearch or Newstart Allowance with an outstanding advance payment accounted for 65,868 debts worth $30.42M.

Family payment overpayments due to failure to notify changed circumstances, underestimates of income or amendments of assessable income accounted for 24,649 debts worth $19.51M.

Prepayment debts (where, because of public holidays, payment is made before customers lodge regular review forms to avoid delays which would otherwise occur) accounted for 70,326 debts worth $14.37M.

All other reasons, including compensation and Assurance of Support, accounted for 197,214 debts worth $25.85M.

The information provided in (2)(b) and (c) is summarised in the table below:

Overpayments Resulting in Legally Recoverable Debts for the 12 month period 1 April 1995 to

31 March 1996