General debt information 107-01000000
This document outlines an overview of all aspects of debt processing.
Government Intent
Debt servicing is an important part of Centrelink's core business. It is important we service customer accounts quickly, accurately and in a sensitive manner. This is central to achieving customer service, partner agency and efficiency goals.
Debt servicing
Debt servicing includes:
- prevention
- identification
- calculation
- raising
- debt and compensation recovery
The Getting it Right strategy
The Getting It Right strategy is a key strategy for the organisation. Pay the right person the right payment at the right time under the right program. Debt management enhances the getting it right strategy through customer profiling and risk management strategies. Priorities, delivery arrangements and causes of debts are analysed to target high risk areas.
The agency has a responsibility to protect government revenue by recovering debts efficiently and effectively.
Maintaining customer privacy when raising or recovering debts
Maintaining customer privacy is a fundamental part of the agency's obligations. See Safeguarding customer privacy when raising and recovering debts, before contacting a customer or issuing a debt notice. Take the appropriate actions to protect the customer's privacy.
Recovery fees
Certain debts raised from 1 July 2006 will have a 10% Recovery Fee applied:
- working age customers who do not declare their earnings correctly, may have a recovery fee added to their debt for: refusing or failing to report income, or
- knowingly or recklessly misreporting income from their own exertion, without a reasonable excuse
Debt Management and Information System (DMIS)
DMIS is a national database designed for:
- recording
- raising and
- recovering of debts
Reports are available for viewing and/or printing from DMIS.
Financial Customer Care in Customer First
For information about locating debts in Customer First, see Viewing and updating Interest Charge (IC) via Financial Customer Care in Customer First.
Process Direct
A new Debt application was developed to action overpayments created in Process Direct. This was due to system limitations in the DMIS.
Data transfer to DMIS occurs for debts raised and recovered in Process Direct. This ensures all details of a customer's outstanding balance and status of all debts.
Related links
Tax agents authority to enquire on behalf of customers
Safeguarding customer privacy when raising and recovering debts
Roles and quality service standards for debt raising and recovery staff
Debt raising over duplicate, multiple or intertwined Customer Reference Numbers (CRN)
How to code and action a manual review
Inter-environment transfer of debts