Debt Write-off
Letter to the Editor - Sydney Morning Herald
25 July 2005
Dear Sir/Madam
Your journalist Joseph Kerr has confused two separate issues in his article (Alvarez account stamped: no charge, 25 July 2005).
Ms Alvarez’ debt to the Commonwealth, along with that of a number of other people, was written off in line with the department’s normal accounting policy – it was not waived, something which only the Minister for Finance and Administration can do, as Kerr pointed out in his article. His implication that there was something sinister about it is baseless.
Writing off a debt is simply an accounting transaction. The law requires that DIMIA must pursue recovery of debts unless the debt has been written off under the authority of legislation, is not legally recoverable or it is not economical to pursue recovery of it.
Given the generally low rate of repayment for removal and detention debts, it is normal practice to write off all such debts, for administrative and reporting requirements.
A debt waiver occurs when a debt to the Commonwealth is actually extinguished completely. Only the Minister for Finance and Administration can waive a debt.
The department would have been happy to explain this distinction to Kerr if he had contacted us.
Kym Charlton
Acting Director, Public Affairs
DIMIA