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Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable 107-05110010

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This document outlines when an excess or incorrect payment received by a customer should be finalised 'no debt' (FND). This is because it is not a debt or it is an excess payment that is not legally recoverable.

Process Direct

On this page:

Identifying an Undetermined Debt Activity (UND)

Actioning finalised 'no debt' (FND)

Identifying an Undetermined Debt Activity (UND)


Table 1

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Step

Action

1

ABSTUDY Schooling A (ABT) record

Phone contact: Typically done by Smart Centre staff. Staff may complete this step if they are trained. Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Did the UND occur when restoring the customer's ABSTUDY Schooling A (ABT) record?

2

Excess Pension Bonus Scheme payments

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Did the customer receive an excess payment under the Pension Bonus Scheme (PBS)?

3

Excess Incentive Allowance payment

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Did the customer receive an excess payment of Incentive Allowance due to participating in a qualifying activity and then transferring to Disability Support Pension (DSP)?

  • Yes, this is not a debt. The customer was not told they had to notify Services Australia of changes in their Incentive Allowance status. Finalise any debt activity as 'no debt' (FND). See Table 2 > Step 2
  • No, go to Step 4

4

Excess Special Benefit (SpB) payments

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Did a child receive an excess payment of SpB in their own right? For example, the parent was not residentially qualified for any payment.

  • Yes, establish if the SpB recipient (in this case, the child) had a correspondence nominee:
    • if the nominee was issued a correct notice under section 68 SS(A)A setting out their notification obligations but did not notify, raise a debt against the SpB recipient. Consider a waiver of the debt under section 1237AAD of the Act, see Actioning an undetermined debt on the Debt Management and Information System (DMIS)
    • if there is no correspondence nominee, no debt exists. The customer (in this case, the child) was not told to notify the agency about their parents' income. Finalise any debt activity as FND. See Table 2 > Step 2
  • No, go to Step 5

5

Crisis Payment (CrP)

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. A CrP is not a recoverable debt unless the customer was:

  • not entitled to the payment (they were paid under the Social Security Act and misrepresented their circumstances), or
  • was covered by an Assurance of Support (AoS) when the payment was made. In this case, create a debt under the Migration regulations 1994, Regulation 2.38(3)(b). See the References page

When claiming the payment, did the customer meet one of the above?

6

Excess Youth Allowance (YA) payment

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Return of a Parental Income Reassessment form (SY012A) after 1 October

Does the UND have a start date in the period that includes 1 October?

7

Youth Allowance (YA)

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Did the customer receive an excess payment of YA based on an estimate of parental income or actual means that was lower than the assessed parental income or actual means for that period?

8

Youth Allowance (YA) payment

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Where the debt is based on an estimate of income, the excess payment is not a debt.

A debt activity can occur if a customer returns of the SY012A after 1 October. This is because the system will backdate the change in income to the pay fortnight that includes 1 October. It does this if the combined parental income exceeds:

  • 125% of the base tax year, and
  • 125% of parental income free area

There is also no legislative basis to allow for the raising of such debts.

The debt may be recoverable, if:

  • the debt period extends beyond 1 January, and
  • the customer did not notify of actual parental income within their notification provisions

See Raising Parental Income Test (PIT) debts.

Does the debt period extend beyond 1 January and the customer did not notify of actual parental income details?

9

Family Tax Benefit (FTB) and Rent Assistance (RA) arrears

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Customers FTB and RA arrears can be adjusted to prevent a duplicate payment. This can occur when a customer receives RA with an income support payment. This is due to an arrears of FTB and RA calculating for the same period. Staff must adjust the arrears before they finalise the FTB claim. This will prevent a duplicate RA payment from issuing.

Did the customer have a FTB and RA arrears adjusted to prevent a duplicate RA payment?

  • Yes, as there has been an adjustment, there is no excess payment. Finalise any debt activity as FND. In the FND Reason field, key COD. See Table 2 > Step 2
  • No, see Table 2 > Step 1

Actioning finalised 'no debt' (FND)


Table 2

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Step

Action

1

Finalised 'no debt' (FND)

Phone contact: Typically done by Smart Centre staff. Staff may complete this step if they are trained. Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Check if the debt should be:

  • FND
  • raised, or
  • waived

To finalise an Child Care Subsidy (CCS) Undetermined Debt Activity (UND) as 'finalised no debt' in Process Direct, see Raising Child Care Subsidy (CCS) debts in Process Direct.

Should the debt be finalised 'no debt' (FND)?

  • Yes, go to Step 2
  • No, see Table 2 in the Actioning an undetermined debt on the Debt Management and Information System (DMIS)

2

Coding FND

Phone contact: Typically done by Smart Centre staff. Staff may complete this step if they are trained. Note: smart centre staff are to follow this procedure when the UND generates due to restoring ABSTUDY Schooling A payments.

Phone contact: Typically done by Smart Centre staff. Staff may complete this step if they are trained. Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained. Use the Debt Assist workflow to FND the debt.

Go to Step 3.

3

Select customer

From the Process Direct Landing page, select Customer Summary:

  • key the customer's CRN, select Go
  • in the Super Key, key START
  • from the Task Selector, select Debt Assist workflow

4

Select the debt to FND

The Debt Summary screen will show all:

  • undetermined debts
  • determined debts, and
  • finalised debts

To view debt information details, select View details.

From the Debt Information Overview:

  • select the undetermined Debt ID to be FND. Note: the Debt Assist workflow can only be used to FND an undetermined debt
  • select Next

Details captured throughout the Debt Assist workflow will be included in the Finalisation Note.

5

Select Debt Action

From the Debt Action dropdown menu, select Finalise no Debt to view the confirmation question, 'Have you checked the debt is not suitable to be raised or waived, and confirm the debt is to be Finalised No Debt?’

Did the confirmation question present?

6

Continue the Debt Assist workflow

If the confirmation question does not show after a debt is selected, this may indicate the workflow is already in progress. The workflow will go to the Circumstance Data screen.

Investigate the previously started transaction to confirm the debt is to be FND.

If staff exit the workflow and need to return to continue processing the debt, the Transaction ID must be visible at the top of the screen:

  • if the Transaction ID does not show:
    • in the record, select the Transactions icon > All transactions
    • select Transaction ID hyperlink
  • select Process
  • select Next on the Errors (SWE) screen
  • when the confirmation question shows, select Next

Note: if the confirmation question does not show, the transaction cannot be finalised in Process Direct, see Handover function in Process Direct, Customer First and Customer Record.

Go to Step 7.

7

Confirmation question

Respond to confirmation question, 'Have you checked the debt is not suitable to be raised or waived, and confirm the debt is to be Finalised No Debt?’. For:

  • Yes:
  • No:
    • a warning will appear advising 'You cannot proceed to Finalise No Debt'
    • see Step 1

8

Debt Information

These fields will auto populate and cannot manually be updated:

  • Debt ID
  • Debt status
  • Date of event
  • Debt start and end dates
  • Legislative authority
  • Estimated amount
  • Calculated amount

Note: the calculated amount will be automatically set to $0.00 as FND has been selected.

Confirm the details are for the correct debt.

9

Benefit type

The Benefit type field will auto populate and can be manually updated if required.

To update:

  • start keying the appropriate Benefit code, or
  • select the Benefit type from the dropdown menu

Note: the legislative authority will automatically update to the appropriate Act depending on the Benefit type selected.

10

Reason to FND

Select the appropriate reason from the dropdown menu:

  • COD - Incorrect coding
  • EXP - Excess payment
  • FAM - Families
  • MUL - Multiple debt activities. If MUL is selected, the relevant sub-category must be selected:
    • Internal transfer debt - What benefits did the customer transfer to?
    • Multiple debt amalgamation - What is the debt ID that the debt will be amalgamated into?
    • DVA transfer
  • NDC - No Debt Calculated
  • NHL - NOHL Date of Event
  • PRS - Payment restored
  • RTN - Direct Credit Recall. If RTN is selected, the date the payment was returned field must be completed:
    • What date was the payment returned?
  • SCO - Scholarship Offset
  • SYS - Bulk reassessment
  • TPD - Third-party debt. If TPD is selected, key the third-party Customer Reference Number (CRN) into the Third-party reference field if known.
    Note: the third party reference number will show in Additional reference

Complete any additional questions relating to the FND reason where applicable.

For further explanations on the reason, see the Resources page.

11

Notes

Key additional details in the Debt activity description/notes field if required.

Add an Additional reference and/or Project code, if applicable.

Note: these details will be included in the Finalisation Note, except for the third-party reference number. Additional reference details will present on the Debt Details screen.

Select the appropriate options for the Document list (DL) document properties fields from the dropdown menu:

  • Who Contacted
  • Source
  • Channel

Select Next.

12

Finalise the transaction

To finalise the transaction:

  • address any errors/warnings shown on the Errors (SWE) screen
  • select Assess
  • confirm outcome is correct on Debt Finalisation screen
  • select Finish
  • record any additional details of the update, assessment and decision in the Finalisation Note on the Finalise screen. Note: for third party debts, do not include the CRN or other identifying details in the Finalisation Note
  • select Finalise to complete the transaction

There is no manual tax adjustment if the UND debt has been FND.

Note: If transaction cannot be finalised in Process Direct, see Handover function in Process Direct, Customer First and Customer Record.

13

Send feedback when appropriate

Where the UND has been caused by incorrect coding:

  • leave constructive feedback for the staff member responsible for the initial incorrect coding that created the UND
  • where possible, include guidance on corrective action and which references apply
  • see the Resources page for a link to the Staff Feedback Tool