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Monday, 11 November 2002
Page: 6041


Senator Ludwig asked the Minister for Family and Community Services, upon notice, on 25 September 2002:

(1) On what statutory basis does a person retain liability for a Centrelink debt after a period of bankruptcy.

(2) On what statutory basis does a person lose liability for a Centrelink debt after a period of bankruptcy.


Senator Vanstone (Minister for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women) —The answer to the honourable senator's question is as follows:

(1) Subsection 153(2) of the Bankruptcy Act 1966 provides that a person will still be liable to repay a debt, including a Centrelink debt, at the end of a bankruptcy period, if the debt was incurred by fraud.

(2) Subsection 153(1) of the Bankruptcy Act 1966 provides that, unless subsection 153(2) provides otherwise, a person will be released from all of his or her provable debts, including Centrelink debts, at the end of a bankruptcy.