Calculating a compensation debt for judgements 117-02010030

• Yes,
• do not action the judgement
• delete the preclusion period and debt on CMS if already calculated
• go to Step 4
• No, go to Step 2

• Yes, see Workload Management
• No, go to Step 3

Has the compensation payer or the customer's solicitor sent a copy of the judgement papers?

Before calculating the debt, the CRT should check with the compensation payer or customer's solicitor that:

• the monies are ready to be released
• periodic payments have ceased, and
• no appeal will be made

Can the judgement be calculated?

• Yes, go to Step 5
• No, go to Step 4

Request details in writing from the compensation payer or the customer's solicitor:

• for the return of the award terms, or
• date monies are to be released, or
• the day periodic payments are due to cease, or
• for the conclusion of any appeal

Place the work item on hold for 22 days recording all actions taken in a Fast Note.

If the work item cannot be held (for example, scanned digital image):

• Create the Compensation Progress Doc Fast Note and place it on hold for 7 days:
• select Auto text, use Compensation > For use by Compensation Staff only > Template: Compensation Progress Doc. Select Confirm
• Enter notes (for example, periodic payments continuing until settlement is released, preclusion period to be actioned)

Procedure ends here.

• Incident Details
• Claim Details
• Periodic Payment Details

If periodic compensation is recorded and periodic payments have ceased:

• ensure the end date is correct, and
• reflects the same end date on the Claim Details screen. See Coding and raising debts for periodic compensation payments

Compensation Payer Details, check:

• the claim Reference ID is correct for the purpose of the notice

Lump Sum Payment

Ensure amounts are aggregated for prior lump sums paid for the same incident.

Issue Preliminary Advice when entered, if recorded as:

Advice issued automatically or Advice issued manually – debt will go to compensation payer

Advice not issued – debt will go to customer

Solicitor Details

Check details are correct.

Do the terms of the award indicate specific components for economic loss was included in the lump sum payment?

• Yes, go to Step 8
• No, go to Step 7

• If the terms make it clear that the award does not contain compensation for economic loss. It should be accepted that the compensation part is nil
• If the court order does not fully set out the basis of the award, seek more information and request documents:
• Heads of Damages, or
• Judgement Order, or
• Judgement Claim Form, or
• Judgement statement claim, or
• A copy of the writ seeking damages from the compensation payer
• If there is no evidence, it is reasonable to decide that the compensation part is 50% of the gross payment.

To calculate the amount for economic loss use the amounts specified in the judgement.

Add together the specified amounts for economic loss:

• Past and future economic loss
• Interest awarded on past economic loss
• Interest on superannuation
• Loss of superannuation and
• Taking away any amount of periodic compensation from the judgement

This figure results in the economic loss amount to be used.

To calculate the debt:

• Select the relevant Claim ID
• Select Lump Sum Payments
• Select Add Lump Sum

Code the following fields:

• Settlement Date, key settlement date as per Judgement document
• Settlement Type, select 'Judgement' from drop down box
• Gross Settlement Amount, key the amount specified amount including agreed 'costs'
• Economic Loss amount
• Issue Notice, select Issue Notice Automatically:
• after the death of a customer, the debt is recovered against the estate under Chapter 5 of the Social Security Act 1991, or
• the money is released to the customer before paying the debt, or
• after advising the agency, but before the agency has calculated the preclusion period and debt
• A s1184H debt is raised and notice sent to the Compensation Payer
• Compensation Payer Incident Reference IDS1184H - select check box to raise convention debt, select Continue to go to the Lump Sum Assessment Results screen
• Select Back to cancel any changes made on the Lump Sum Details screen

The calculated debt amount and the debt period will show on the Lump Sum Assessment Results screen.

The results of the debt will show in the following fields:

• Incident Date
• Gross Settlement Amount
• Economic Loss Amount
• Divisor Amount
• Charge Amount
• Charge Period
• Preclusion Period

If manual adjustments are required:

• Select Save and Exit
• Check the Debt List (OPDL) screen

If another debt has been previously repaid within the preclusion period:

• Check that the system has correctly adjusted the Lump Sum Assessment Results screen. See the Resources Page
• If not altered correctly, alter manually. The Resources page contains a link to the Payment Details Download Sheet (PS Tool) for use as a tool to reconcile payments received with the Lump Sum Assessment Results screen if required

To manually adjust a payment:

• On the Compensation Management Summary screen, select the started Lump Sum activity under Action Item
• Select Continue on the Lump Sum screen to go to the Lump Sum Assessment screen. Select the Add Payment Charge: field. This is to add a line where a payment has not been included
• Enter the payment details in the required fields
• Select Submit to add the new line
• Select the new line to edit the payment components
• Select Add Component or Edit Component and update if appropriate
• Select Delete to delete the payment component
• Select Back
• Delete Payment Charge - delete a payment line

The $600 Carer Supplement is a recoverable CAP when the underlying payment is a CAP. Supplementary payments are recoverable when the underlying payment is a CAP.

Select Save and Exit to save Lump Sum assessment details.

A Display on Access (DOA) Fast Note ‘Special Contact Considerations (SCC) - Sensitive Issue - ‘FDV Concern Identified’ will show for customer records with a family and domestic violence (FDV) concern.

Is there an indicator on the customer’s record?

• Yes, do not garnishee any outstanding customer debt, go to Step 5
• No, go to Step 4

Check if the customer debt/s meet the following criteria.

• A single high value debt of more than $10,000
• 3 debts with a value of more than $5,000
• 4 or more debts, or
• If the customer has identified vulnerabilities including, but not limited to:
• customers under 16 years of age
• customers over 80 years of age
• homelessness
• mental illness
• family breakdown
• family and domestic violence, or
• low literacy or numeracy skills

Interpreter and language Services

There are language and interpreter services available for customers who may need an:

• Immediate telephone interpreter
• Indigenous language interpreter

See Interpreter Services.

Does the customer have other outstanding customer debt?

• Yes,
• consider garnishee action with the customer to recover debts
• before calling a customer, send a pre-call SMS message if the customer has a telephone number on record and has subscribed to receive SMS messages via Electronic Messaging
• make genuine attempts to contact the customer and record details of each contact attempt on a Fast Note
• go to Step 5
• No, go to Step 5

Is there a future preclusion period?

• Yes, before completing the lump sum coding,
• contact the compensation payer to ensure the funds are ready to be released
• contact the customer and tell them their payment will cancel
• discuss the future preclusion period and any debt (if raised)
• if the customer has an outstanding debt, discuss garnishee action while they are on the phone. Go to Step 6
• No, go to Step 6

Is there a debt?

• Yes,
• Before completing the lump sum coding, the CRT is to contact the customer to discuss the past preclusion details and debt raised
• If the customer has an outstanding customer debt, discuss garnishee action while they are on the phone. Go to Step 7
• No, go to Step 7

On the Compensation Management Summary screen, select the started Lump Sum activity under Action Item.

On the Lump Sum screen:

• Complete the Source and Receipt Date
• Select Continue
• The Assessment Results (AR) screen will show
• Select Submit to finalise the debt

If no Preliminary Notice has been sent and the debt is nil, send the Q928 nil debt letter to the compensation payer.

If a manual letter is required, see Compensation Online Advice (OLA) letters.

Waive any debt less than $50 and create a Fast Note.

Most letters will be delivered by the customer’s or nominated third party’s preferred delivery channel. The customer or third party must be given a reasonable amount of time to receive the letter by post.

As the delegate, determine if the request is 'urgent' and/or a letter is required to be given on the same day.

Is an urgent or same day letter required?

• Yes, fax a copy of the letter on the same day, see Faxing letters using Outlook and Customer First
• No, procedure ends here