Calculating Centrelink entitlements and gathering information when investigating debts 107-03000000

Question the suspected debt. Consider:

• What action created the debt?
• Is the debt recoverable and cost effective?

Determine if a debt has occurred. Consider:

• the legislative basis for the debt
• if there is sufficient evidence to confirm the debt

DOCument the investigation, even if the debt is not identified yet. Include details such as:

• evidence about the debt
• the location of evidence
• the review on which the debt is based (if applicable)

Do not use abbreviations or jargon.

Good documentation helps pursue recovery and to obtain evidence in future if required. See Online Document Recording (ODR) and Creating, reviewing and deleting documents (including Fast Notes and DOA DOCs) for DOC minimum standards.

See Table 2 in Safeguarding customer privacy when raising and recovering debts, before issuing any debt notices. Take the appropriate actions to protect the customer's privacy.

Before calculating the correct customer entitlement, further evidence may be required to substantiate a debt. Do not request further information unless it is necessary to accurately calculate the customers' entitlement. See Acceptable evidence for verifying income when investigating debts and Table 3.

Evidence is not limited to documentation scanned to the customer's record. Staff must use all sources of evidence when raising/verifying a debt and consider all details available on a customer's record as correct. Staff can only consider details inaccurate or incorrect if there is evidence that indicates the update is wrong.

When requesting information from customers or third parties, make a reasonable effort to contact the customer. If unsuccessful, see Requesting information (CLK).

For a notice to be valid it must be in writing and include:

• details of the information/action required
• the time allowed to respond. For example, at least 14 days after the deemed receipt
• the consequences of non-compliance
• the reference to the relevant Act that the request has been made under

Scan any paper evidence to the record. This establishes an audit trail in an electronic format.

The Resources page contains lists of suitable letters.

The minimum standard is to be able to reconstruct the debt.

When raising a debt using ADEX, ensure that the system debt amount is correct. This includes checking:

• if the debt is in a category for which a system debt calculation is not appropriate
• the Payment Summary (PS) screen for one-off payments
• ADEX for any related activities and related debts

If the original decision cannot be validated, the debt should be finalised ('no debt').

See Table 2 in Safeguarding customer privacy when raising and recovering debts, before issuing any debt notices. Take the appropriate actions to protect the customer's privacy.

To send an OLA to the customer/third party:

• go to the Letter Display (LD) screen
• code the required letter code in the Letter Code: field, press [Enter]
• code 'DMN' in the Please enter the required Service Reason: field, press [Enter] and follow the prompts in the letter

Record details on a DOC and hold DOC/activity to follow up the return of the notice.

There is a guided procedure in Customer First to help send and record information.

For general information on the Allowance income and asset tests, including an example of a calculation for a partnered customer, see:

• Allowance income and assets tests
• Assessment of employment income for Centrelink payments

For assessment of employment income and how to update on the customer's record, see:

• Recording and correcting employment income details

Income for customers on JobSeeker Payment (JSP), Widow Allowance (WA) and Youth Allowance (YA) (job seeker) are all calculated using the same Income Test. See:

• Income Test for single allowance customers, or
• Income Test for partnered allowance customers

For Assessing employment income for part-time and full-time employment, see:

• Recording and correcting employment income details
• Parenting Payment Partnered (PPP) income and assets tests

For Assessing self-employment, independent contractor or business income, see:

• Assessing sole trader income
• Commencement of a new business or purchase of a business enterprise
• Obtaining an estimate of business income
• Income for an independent contractor and commission income

Earnings for PPS customers are assessed under the 'Parenting Payment Single Income Test' and the allowance Assets Test, see Parenting Payment Single (PPS) income and assets tests.

For an overview of the Pensions income and assets tests, see Pensions income and assets tests.

For assessment of employment income and how to update employment income on the customer's record, see:

• Recording and correcting employment income details
• Income Test for single pension customers
• Income Test for partnered pension customers

A pension customer may be paid under the transitional rules if they had affecting income and would be worse off when the pension Income Test changed from 40c taper to 50c taper as part of the Pension Reform changes from 20 September 2009. See:

• Transitional rules for pension customers who were on payment at 19 September 2009
• Income Test for illness separated or partner in prison customers
• Income and assets tests for blind customers

For information on income tests for Disability Support Pension customers, see:

• Income Test for Disability Support Pension customer who is under 21 years, with no dependent children and with affecting income at 19 September 2009
• Income Test for Disability Support Pension customer who is under 21 years, with no children

For single DSP customer's over 21 years or with dependent children see Income Test for single pension customers.

Note: from 20 September 2009, employment income for pensioners is assessed in the fortnight of receipt.

For information on how to code and assess employment income, see:

• Recording and correcting employment income details
• Income Test for pension customers with partners on allowance
• Income for an independent contractor and commission income

A pension customer may be paid under the transitional rules if they had affecting income and would be worse off when the pension Income Test changed from 40c taper to 50c taper as part of the Pension Reform changes from 20 September 2009. See Transitional rules for pension customers who were on payment at 19 September 2009.

Note: from 20 September 2009, employment income for pensioners is assessed in the fortnight of receipt.

See Personal Income Test and Income Bank for ABSTUDY, Austudy and Youth Allowance (YA) students and Australian Apprentices.

To:

• code income and assets for a customer, see Coding income and assets for Centrelink payments and services
• assess employment income, see:
• Recording and correcting employment income details, and
• Income for an independent contractor and commission income

For students and Australian Apprentices, see Personal Income Test and Income Bank for ABSTUDY, Austudy and Youth Allowance (YA) students and Australian Apprentices.

Note: from 20 September 2009, employment income for pensioners is assessed in the fortnight of receipt.

For information of deeming rates and provisions, see:

• Deeming provisions
• Deeming exemptions

For current maximum rates for each individual payment, see Rates and Thresholds.

See the References page for links to historical rates of payment, including the income and asset limits.

See Working Credit.

The Work Bonus is a discount available to the assessment of employment income earned by a pensioner of Age Pension age except for Parenting Payment Single customers.

The Work Bonus is applicable to the following payments if the customer is Age Pension age:

• Age Pension
• Carer Payment
• Disability Support Pension

It is also available to Department of Veterans' Affairs (DVA) pensioners who are of Service Pension age and in receipt of:

• Income Support Supplement (ISS)
• Service Pension (DVA)
• Age Pension (AGC)

While a customer is paid under the transitional rules, they are not entitled to the Work Bonus, however the Work Bonus will still be used in the comparison calculations and partners may still benefit by the reduction in total income. For more information, see:

• Work Bonus and balance for pensioners of Age Pension age
• Transitional rules for pension customers who were on payment at 19 September 2009
• Pension income and assets tests

The Pensioner Earnings Credit Scheme is no longer current and was abolished on 20 March 1997. Earnings Credits accrued prior to this date must be included in debt calculations if the customer was entitled to them. For the Pensioner Earnings Credit Scheme:

• MultiCal is capable of taking into account Earnings Credit from January 1993 onwards for both Pensions and Newstart
• the Earnings Credit history for NSA customers is usually available via the USB Earnings & Casual Income Details (UEC) screen and the 'Income History' report in the Archive System (CAR). This is not the case for Pension customers because the Earnings Credit information was not transferred across with the introduction of the Pensions Common Platform

For Rates of entitlement and examples of calculations, see National Instructions, 1988 - 1995, The Earnings Credit Scheme for Job Search, Newstart and Sickness Allowance. The Resources page contains a link to the National Instructions.

For Rates of entitlement and examples of calculations, see National Instructions, 1988 - 1995, The Earnings Credit Scheme for Pensions. The Resources page contains a link to the National Instructions.

Note: apply the 'best case scenario' to debt calculations if there is insufficient information (and no way to obtain the information required) to properly assess the Earnings Credit entitlement.

In some cases, rent assistance paid to a customer who has not provided verification of their rent details, is not recovered.

See Step 2 in Types of Centrelink debts and how they are generated.

An advance payment is not a debt unless the customer's income support payment ceases. The balance owing then becomes a recoverable debt.

The gross amounts paid are the 'payments received', not the net amount. This is because part of the advance has been repaid.

An Education Entry Payment (EdEP) is not included in any debt calculations unless the customer did not start the course. It is not affected by income.

Pharmaceutical Allowance (PhA) is an additional payment made to certain customers. PhA is a non-taxable payment and is subject to the income and assets test.

Remote Area Allowance (RAA) is not:

• indexed
• income tested
• taxable

Income reduction on a debt with Rent Assistance (RA) affects the basic rate first, then the RA amount.

Telephone Allowance (TAL) is non-taxable and is subject to the income and assets test.

Pension Supplement is subject to the income and assets test. If the customer qualifies for payment, the Pension Supplement Minimum Amount is payable in full.