Overview

• The government will lift the small‑debt waiver threshold from $200 to $250, wiping debts of up to $250 this financial year.
• People whose debts were calculated using income apportionment between 2003 and 2020 will be eligible to apply for resolution payments of up to $600.
• The package totals about $300 million, including $400,000 for Economic Justice Australia and ACOSS to help administer the resolution process.
• Legislation is slated for introduction in coming weeks to provide certainty around social security debt‑calculation methods.
• The announcement follows a July Federal Court decision allowing recalculation of unlawful debts, as Greens and crossbench MPs press for broader cancellations such as wiping debts older than six years.