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Recovery Fee applied to debts resulting from incorrect declaration of income 107-05100040



Recovery Fee codes

Table 1

Code

Literal

Type

Explanation

RFA

Recovery Fee applied

Y

10% Recovery Fee applied to the portion of the debt due to undeclared or under declared income from personal exertion. Working age customers only.

RDA

Recalculation - Debt Amount Change

Y

Recalculation of the 10% Recovery Fee required due to recalculation of the portion of the debt due to undeclared or under declared income from personal exertion. This applies to both a debt change and a partial debt waiver.

RWA

Debt Waived - Recovery Fee Removed

Y

Debt fully waived. Recovery Fee removed.

REA

Not app - reasonable excuse

N

Customer had a reasonable excuse for not telling the agency of their earnings. See Policy in the References page for a link to the Social Security Guide, 6.7.1.45 for a full explanation.

NCC

Not app - no contact

N

Attempt made to contact the customer. Customer did not reply to request, or customer's whereabouts are unknown. Reasonable excuse could not be determined. Fee not applied.

RNE

Not app - no evidence

N

No/insufficient documentation to show how the debt occurred. Benefit of the doubt given to the customer. No Recovery Fee applied.

NKN

Not app - not knowingly

N

Earnings were not declared or were under declared, however this was not done knowingly by the customer. This means that there is no intent in the debtor's conduct. No Recovery Fee applied.

NRE

Not app - not recklessly

N

Non declaration was not because the customer recklessly failed to advise. This means that the debtor was not recklessly indifferent about their conduct or representations. No Recovery Fee applied.

ADE

Not app - Admin error

N

Debt is solely due to administrative error by agency staff or system operations. No Recovery Fee applied.

RFR

Recovery Fee Removal

N

Customer successfully appealed the application of the 10% Recovery Fee. Recovery Fee removed.

Applying the Recovery Fee

Table 2

Item

Description

1

Payments that may attract a Recovery Fee

  • JobSeeker Payment (JSP)
  • Austudy (Student and Apprentice/Trainee - AUS/AAP)
  • Parenting Payment Single (PPS)
  • Parenting Payment Partnered (PPP)
  • Youth Allowance (Student, Apprentice/trainee and job seeker - YST, YAP, YJS)
  • Disability Support Pension (DSP)
  • Widows Allowance
  • Partner Allowance
  • Farm Household Allowance (FHA)

2

Special Benefit categories

Some Special Benefit categories will also attract the fee if they meet the age requirement as well. These are:

  • AoS - Assurance of Support
  • CFC - Caring for a child
  • CIP - Caring for an incapacitated person
  • NMN - Newly Arrived Resident in 104 week waiting period for JobSeeker Payment/Youth Allowance
  • NMP - Newly Arrived Migrants in the Waiting Period for Parenting Payment/Mature Age Allowance/Carer Payment (104 weeks)
  • NRD - Not residentially qualified for Disability Support Pension (DSP)
  • OLT - Other cases (Long Term)
  • OST - Other cases (Short Term)
  • SOM - Socially marginalised
  • SPV - Partner Provisional Visa
  • TPD - Temporary Visa Holder, medically qualified for DSP, but ineligible due to residence
  • TPP - Temporary Visa Holder activity tested customer
  • TPV - Temporary Visa Holder of workforce age paid continuously since before 1 January 2003

3

Income support working age payments not subject to the Recovery Fee

  • ABSTUDY
  • Carers Payment
  • Exceptional Circumstances Relief Payment (ECRP)
  • Farm Help Income Support (FHIS)
  • Some categories of Special Benefit (SpB) not listed above

Recovery Fee codes in DOC

Table 3

Item

Description

1

Recovery Fee codes in DOCs

The Debt Action script creates a DOC when application of the Recovery Fee is considered. The script places a single alpha code before the debt amount in the DOC Extra Details summary line. The full details are available in the DOC text.

2

Recovery Fee is imposed

I = Recovery Fee Imposed

3

Recovery Fee is not imposed

L = Q175 Warning letter

V = Verbal Warning

N = No Warning has been issued

A DOC detailing the decision about the Recovery Fee is still required. These codes are a quick reference.