Skip to navigation Skip to content

Debts arising from commutation of asset-test exempt income streams 107-04020120

This document outlines details on debts resulting from the commutation of asset-test exempt (ATE) income streams.

Calculation of income stream exemption from asset test

Step	Action
1	Asset test exempt income stream The customer has made a commutation from their asset-test exempt income stream product. Note: income streams that comply with requirements in sections 9A, 9B or 9BA of the Social Security Act 1991 are asset-test exempt (ATE). All ATE income streams purchased before 20 September 2004 receive a 100% assets test exemption ATE income streams purchased on or after 20 September 2004 and before 20 September 2007 are 50% asset-test exempt Income streams purchased from 20 September 2007 will be fully asset-tested Provided certain conditions are met, certain ATE income streams will be allowed to retain 100% of 50% asset test exemption if they are: purchased before 20 September 2007, and commuted and rolled over into a post 20 September 2007 ATE income stream The References page contains more information. Is the commutation allowable? Yes, go to Step 2 No, go to Step 3
2	A recoverable debt does not exist Record a DOC with the details. Procedure ends here.
3	Calculate and raise the debt For further information on calculating debts, see General debt management information, and Debt raising To raise the debt: using the Debt Action script, go to Step 4 manually, go to Step 5
4	Use the Debt Action script Follow the prompts of the Debt Action script to raise the debt. Before starting the script, see Safeguarding customer privacy when raising and recovering debts. Take the appropriate actions to protect the customer’s privacy.
5	Manually raise a debt From the Activity List (AL) screen go to the Add Debt (OPAD) screen. To add the debt details, complete these fields: Benefit Type, key payment the customer received Reason, key reason for the debt Section of Act, key section of the Act under which the debt is raised Date of Event, key date the change in circumstances occurred Date of Notification, key date the customer notified the change in circumstances Start Date, key debt start date End Date, key debt end date Calculated Amount $, key actual amount of debt Estimated Amount $, key estimate amount of debt FND Reason, key reason for 'finalising no debt' Addtnl Reference No, key reference to link to another customer, service provider or external organisation Was debt solely due to system or clerical error?, key: N for no S for system, and C for clerical error Press [Enter] to view the Account Payable (OPAOD) screen.
6	Complete the Account Payable (OPAOD) screen See Safeguarding customer privacy when raising and recovering debts, before issuing any debt notices. Take the appropriate actions to protect the customer’s privacy. Key a detailed explanation of why the debt was raised, under the heading ‘Why This Amount Is Payable’. The text entered will appear on the Account Payable. Remember to: use plain English ensure the reason is clear and easy to understand include references to legislation Complete these fields: Total received $ Contact Name Contact Telephone Press [Enter] twice to view the Assessment Finalisation (OPAF) screen. See Sending Account Payable letters.
7	Assessment Finalisation (OPAF) screen In the Finished? field, key: Y if the activity is completed N if the activity is not completed Q if the activity is completed but requires checking Record details of the debt on a DOC.