Skip to navigation Skip to content

Recovering debts from organisations 107-05090060

Expand/Collapse all sectionsExpand all



For staff undertaking debt recovery only.

This document outlines how to recover a debt from an organisation, and how the process differs to other debt recovery. Early contact is key to positive recovery outcomes.

On this page:

Determine the reason for the call

Identify the debt authority

Coding a payment arrangement

Determine the reason for the call

Table 1

Expand table

Step

Action

1

Customer is an organisation

An organisation record will show M9890 Customer is an organisation at the top of the screen.

Organisation debts will only show in the environment in which it was created. For:

  • Customer First, select Y to 'swap to organisation environment'
  • Customer Record:
    • go to the Organisation Details (ORD) screen
    • key Yes to swap to organisation environment

To locate organisation payment information, see the Resources page.

Is the customer an organisation?

2

Organisation contacts

Check that the person is an authorised contact person via these screens:

  • Organisation Service Contact Summary (OSCS), or
  • Organisation View Contact (OVC)

Note: the authorised Debt Staff contact will have a DMN Service Reason next to their name.

If the organisation has returned a completed Q318, see the Resources page for referral to the Paid Parental Leave Employer Processing Team (PPLEPT) team.

For:

3

Active Recovery

Explore all reasonable avenues to recover the debt. This may include:

  • multiple contact attempts to resolve any issues or disputes
  • talking to more than one person
  • debt explanations
  • sending copies of relevant forms or letters

Note: Debt Staff must not search for employees personal details. For example, home address, mobile phone numbers.

Have attempts to contact the organisation resulted in a successful engagement?

4

Reason for the call

To:


Identify the debt authority

Table 2

Expand table

Step

Action

1

Organisation debt authority

Not all methods of recovery apply to each organisation.

Check the Authority field on General Information (OPGI) screen.

For:

2

Student Assistance Act

Recover organisation debts raised under the Student Assistance Act through:

3

Paid Parental Leave Act

PPL employers can make debt repayments by electronic funds transfer (EFT).

Note: the EFT facility is only available as a last resort.

Recover organisation debts raised under the Paid Parental Leave Act through:

4

Family Assistance (Administration) Act

Recover organisational debts raised under the Family Assistance (Administration) Act through:

5

Social Security Act or Social Security (Administration) Act

Recover assurer debts through Assurance of Support Bonds. Once the bond funds are exhausted, recovery can start through other methods.

Recover organisational debts raised under the Social Security or Social Security (Administration) Act through:


Coding a payment arrangement

Table 3

Expand table

Step

Action

1

Withholdings

Withholdings will apply to Approved Care Organisations (ACOs) that are current on FTB.

An ACO will only get base FTB Part A for each child in their care. The standard rate of withholdings for base rate Part A is 95%.

If the ACO also gets the Energy Supplement Part A per child (FTB CESA), the standard rate of withholdings will decrease to 25%.

A non standard rate of withholdings must meet the Family assistance minimum acceptable withholding levels. The Money You Owe withholdings rates are not available to organisations.

See Standard withholdings for debt recovery.

Is a change to the withholdings rate required?

2

The Withholdings Instruction (OPWH) screen

To code a change in the existing withholdings rate, use the Debt Recovery script to code the following:

  • key OPAL in the Nxt field > [Enter]
  • select the CUR withholdings arrangement from the top of the list > [Enter]
  • key T in the Cease Date field > [Enter]
  • on the OPAL screen, key WHS in the Create new arrangement type field > [Enter]
  • complete these fields on the OPWH screen:
    • Withholding Type, key FTB
    • Non Standard Amount $, key the dollar amount to be withheld
    • Non Standard Amount %, only use for 100% withholdings
    • Comments, key any comment relevant to the discussions
  • key OPAF in the Nxt field > [Enter]
  • key Y in the Finished field > [Enter]
  • record the details on a DOC and include:
    • CRN balance
    • debt ID(s)
    • withholdings amount
    • withholdings start date
    • reason why non standard withholdings are in place
    • details of any arrangement reviews

The system will send a letter advising the amount to be withheld.

FTB withholdings do not have an arrangement end date. ACOs will not form part of the automatic withholdings end date reviews.

Procedure ends here

3

Payment rates

The recovery rates for organisations differ to the rates for individuals. Recover organisation debts in the following order:

  • payment in Full by the due date
  • extension for a further 14 days
  • regular payments that recover within 90 days
  • regular payments that recover within 12 months

Note: where an organisation has debt/s written off Other Recovery Action (ORA), pursue recovery on remaining debts.

Will the organisation agree to payments that recover the debt within the required guidelines?

4

Reduced payment rates

If an organisation cannot afford the payment rates, accept a lesser amount. After 3 months renegotiate the arrangement to increase payments to meet guidelines.

Can the organisation make regular ongoing payments?

5

Short Term Solvency hardship

Can the organisation meet their normal expenses?

6

Payment method

PPL employers have a separate reference number for each Debt ID. They cannot make bulk payments using BPAY® or the barcode on their letters.

To ensure correct receipting, they must make a separate payment for each debt. For:

  • BPAY®, use these biller codes:
    • 303867 for PPL employers
    • 21915 for all other organisations
    • organisations should check with their bank before using a credit card as additional charges may apply for BPAY® payments
  • Australia Post:
    • use offices or outlets that accept EFTPOS or cash using the barcode. To ensure correct receipting, PPL employers must make a separate payment for each debt
    • the minimum repayment amount is $5.00 if paying in person at Australia Post using cash, cheque, credit card and EFTPOS
  • Phone:
    • use Australia Post Billpay code 0802
    • the minimum repayment amount is $10.00 if using Australia Post Billpay
  • Mail:
    • cheques are not the preferred method of payment
    • cheques are payable to the Collector of Public Monies
    • send the cheque to the Debt Finance Team
    • the back of the cheque should include the organisation's CRN and details of Debt ID(s)
  • EFT (PPL employers only). Use EFT to pay debts when other payment options are not suitable. This option is a last resort, go to Step 10

Note: do not code Direct Debit arrangements for organisations.

Is the organisation intending to make:

7

Irregular cash arrangement

Use the Debt Recovery script to code the following:

  • on the Activity List (AL) screen, 'S'elect the DMN/RCV No Arrangement activity > [Enter]. Note: if there is no DMN/RCV activity, key OPAL in the Nxt field > [Enter]
  • in the Create new arrangement type field, key IRR > [Enter]
  • complete these fields on the Irregular Cash Payments (OPIC) screen:
    • Agreed Date, key the date the agreement was made. This must be today's date or less than 7 days in the past
    • Amount $, key the payment amount
    • Expected date, key the agreed payment date. It must be today's date or later
    • Comments, key any relevant comments
    • press [Enter]
  • go to the Assessment Finalisation (OPAF) screen
  • key Y in the Finished? field > [Enter]
  • record the details on a DOC and include:
    • CRN balance outstanding
    • the irregular cash payment amount/s
    • the date/s of the irregular cash payment/s
    • the payment method. For example, BPAY®
    • the specific Debt ID(s) for the payment
    • specific warnings provided. For example, interest charge, legal action
    • the Section of the Act
    • any other relevant details from the discussion

The system will send a letter confirming the arrangement.

Is a regular arrangement also required?

8

Regular cash arrangement

On the Activity List (AL) screen, 'S'elect the DMN/RCV No Arrangement activity > [Enter]. If there is no DMN/RCV activity, key OPAL in the Nxt field > [Enter].

In the Create new arrangement type field, key CSH > [Enter]:

  • complete these fields on the Regular Cash Payments (OPRC) screen:
    • Agreed Date, key the date the agreement was made. This must be today's date or less than 7 days in the past
    • Pay start date, key the date of the first payment. It must be today's date or later
    • Amount $, key the payment amount
    • Frequency, key the frequency of the regular cash payment
    • Comments, key any relevant comments
    • press [Enter]
  • go to the Assessment Finalisation (OPAF) screen, key Y in the Finished? field > [Enter]
  • record the details on a DOC and include:
    • CRN balance outstanding
    • the regular cash payment amount
    • the date the instalments are due to commence
    • the payment method. For example, BPAY®
    • the specific Debt ID(s) for the payment
    • specific warnings provided, for example interest charge, legal action
    • the Section of the Act
    • any other relevant details from the discussion

The system will send a letter confirming the arrangement.

Procedure ends here.

9

Legal proceedings

Organisations with debts over $10,000, that have the capacity to pay, may be suitable for civil recovery action. The level of income and assets determines capacity to pay.

Only use the civil recovery option if all administrative options are explored. This includes voluntary arrangements.

The Litigation Team will decide if the agency starts civil procedures to recover debts. Refer cases to an APS5 or above in the Specialised Recovery Team (SRT).

Note: civil action does not include organisations in administration or liquidation. The Debt Administration and Bankruptcy (DAB) Team manage these cases.

See:

Is a referral for civil action required?

  • Yes, refer the file to the Operational or Team Leader. Procedure ends here
  • No, consider other methods for recovery. Procedure ends here

10

Electronic Funds Transfer (PPL employers only)

Use the EFT option as a last resort to pay debts when other payment options are not suitable.

When a PPL payer requests repayment of a debt using EFT, warm transfer to the Debt Finance Team. If the call cannot be taken:

  • email the Debt Finance Team with PPL EFT REQUEST in the subject line
  • include these details:
    • organisation's CRN
    • company name
    • contact person and email/phone number, including the area code
    • any other relevant information, such as days or times to contact
    • Debt ID
    • the sender's name and phone number
  • record all details of the referral on a DOC
  • procedure ends here