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Home / Guides / Social welfare overpayments

Social welfare overpayments: what happens and what you can do

The short answerIf you've been overpaid, the Department must tell you why, how much, and how it wants it back. It can take up to 15% of your weekly payment or wages. If it was the Department's own delay or mistake, it may reduce or cancel the debt, and if you can't afford it, repayment can be reduced, deferred or suspended.

Get MABS (0818 07 2000) on side before agreeing a repayment rate, and check whether you were due a different payment over the same period.

Quick facts

Max weekly deduction
15% of your payment
From wages
Up to 15%
Notice
In writing first
Can't afford it
Reduced, deferred or suspended
Department's mistake
May be reduced or cancelled

What the Department must tell you

"The reason(s) for the overpayment The amount involved And The way the Department proposes to get back the amount that has been overpaid." "You must be notified in writing before deductions can take place."

How it's taken back

"15% can be taken from the personal weekly rate of your social welfare payment to pay back an overpayment." "Deductions of up to 15% can be also made from your earnings", and money can be taken from a bank account.

"If you cannot afford to repay the amount you were overpaid, the repayment may be reduced, deferred or suspended."

When it can be reduced or cancelled

The Department may reduce or cancel an overpayment if it "Failed to act within a reasonable period of time on information it received about you Made an mistake that you could not reasonably be expected to have noticed". Tell them in writing if you think it's their error.

"If you got a payment that you were not entitled to under one social welfare scheme, but would have been entitled to payments under another scheme, this will be taken into consideration in deciding how much you have to repay."

"The liability to repay overpayments may continue to exist after your death." You can appeal an overpayment decision to the Social Welfare Appeals Office.

Common questions

How much can social welfare take back for an overpayment?

Up to 15% of your personal weekly payment, or up to 15% of your earnings.

Can a social welfare overpayment be written off?

It may be reduced or cancelled if the Department failed to act in time or made a mistake you couldn't reasonably have noticed.

What if I can't afford to repay?

Repayment may be reduced, deferred or suspended. MABS can help you negotiate.

Source: Citizens Information: Social welfare overpayments, read 1 October 2026. Every figure on this page is quoted from there. If it changes, this page is wrong until we fix it — tell us and we will.

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