Administrative error waivers 107-05120010

Check if:

• there was an administrative error that needs investigating, or
• the customer asked for a waiver due to an administrative error

Have any of these occurred?

• Yes, go to Step 2
• No, go to Step 3

The eligibility event is the circumstance that resulted in the change (or loss) of entitlement. It may also refer to the payment which gave rise to the debt.

Non-period based payments

The eligibility event is relevant when considering a waiver.

Period-based payments

The eligibility period is the period in a financial year when the customer was overpaid. It is the period of the overpayment.

When an overpayment spans financial years, there is more than one eligibility period. Consider the waiver provisions separately for each financial year.

Waiver criteria:

• the payment causing the debt was due solely to administrative error, and
• the customer received the money in good faith, and
• the debt was not raised within 6 weeks of the later of:
• the first incorrect payment, or
• the end of the notification period if the customer met their notification obligation

See the Resources page for an example.

• the payment causing the debt was due solely to administrative error
• the customer received the payment in good faith, and
  either of the following 2 points applies:
• recovery of the debt would cause the customer severe financial hardship
  or
• the debt has been raised after the later of:
• the end of the next financial year following the one that included the eligibility period or event, or
• 13 weeks from the day of the payment

Severe financial hardship

See the References page for a link to Family Assistance Guide, 7.3.2.10.

See the Resources page for examples of when to consider severe financial hardship.

Use the income and expense details to consider other options first. For example, lower repayments or a temporary write-off could avoid severe financial hardship.

• the payment causing the debt is due solely to administrative error, and
• the debtor received the payment/s in good faith, and
• the debtor would suffer severe financial hardship if it were not waived. See the References page for a link to the Paid Parental Leave Guide, 7.3.6.20

This is when there is a mistake in administering a payment. For example, a customer advises their earnings but the coding is incorrect.

For this debt waiver, the error must have solely and directly caused the debt. The customer must not have contributed to the error in any way. If their conduct contributed to a period of incorrect payment, the debt for that period cannot be waived.

It is not sole administrative error if:

• the customer made an error when notifying their earnings, and then an error was made coding the earnings
• the coding was correct but the customer was never eligible for the payment

See the Resources page for examples.

Make a decision as to whether the customer received the payment/s in good faith. Staff must consider all available evidence. If the available evidence is not sufficient to make a decision, contact the customer.

Evidence and considerations include but is not limited to:

• Information given to the customer that may show what payment/s the customer expected to receive. This could be letters, other literature, information given to the customer during interviews, and phone contact
• Information received from the customer about their circumstances. This may show what they expected their future payments to be and the effect of the information they gave. This includes any information the customer may have provided during phone contact with a Services Australia employee. It does not have to be phone contact with the staff member considering the waiver
• The customer's regular pattern of payment. What did they expect to receive?
• What would be an unexpected payment or amount?
• For how long were the payments incorrect? They might think a short period was due to a delay in actioning new information, while a longer period may suggest the customer has been wilfully blind. (See Step 2 in Table 1 of the Resources page for an example of wilful blindness)
• Did the customer question the payment but was told it was correct?
• Was the customer aware of an irregularity in payment but failed to take steps to let Services Australia know?

See the Resources page for examples.

Having considered all available evidence (including contact by phone if required), did the customer receive the payments in good faith?

• Yes, and all other waiver criteria have been met:
• Debt Staff with the appropriate delegation to waive the debt, see Step 1 in Table 2
• for CCS debts, go to Raising Child Care Subsidy (CCS) debts in Process Direct. Procedure ends here
• Debt Staff without the appropriate delegation to waive the debt, go to Step 7. Do not tell the customer the debt will be waived. The delegate will make this decision
• No, the debt cannot be waived:
• assess if another waiver provision may apply. See Identifying eligibility for waiver
• if no other waiver provision applies, commence the normal recovery process. Procedure ends here

See the References page for a link to the Centrelink Services Delegations and Authorisations on the Services Australia Intranet

Use Fast Note to refer the case to the relevant Debt Team. Include minimum DOC standards for debt waivers and relevant details for the Debt Staff to consider, such as:

• customer details and contact
• how the debt occurred
• debt reasons and calculations
• whether the debt arose from the customer or someone else:
• knowingly making a false statement, representation or omission, or
• failing to comply with legislation
• factors that support waiver due to administrative error
• why waive the debt rather than write it off

See the Resources page for examples.

When the waiver submission is complete, for:

• staff with debt responsibility, refer to a staff member with the appropriate delegation level. See the References page for a link to Centrelink Services, Delegations and Authorisations on the Services Australia Intranet. Select the instrument based on the appropriate Act
• all other staff, refer the case to the relevant Debt team. See the Resources page in Debt ownership for referral details.

Procedure ends here.

Check the debt status on the Debt List (OPDL) screen. If the debt status is:

• UND (undetermined), see Waiving Centrelink debts
• FRE (finalised fully recovered), go to Step 2
• DET (determined, pending recovery):
• select the debt from the OPDL screen
• go to the Write off (OPWO) screen
• place a 'Y' in the restart recovery box, go to Step 3

For Debt Management and Information System (DMIS) to allow the waiver, the debt status must show as DET (determined). This is done by adjusting the repayment history.

Over-recovered debts

Do not tell the customer if a refund will be paid. Debt and Compensation Recovery Operations Branch will decide this. They may refund or transfer the amount to other outstanding debts.

Non-Debt Staff:

• record a Fast Note. Use Fast Note - select Auto Text, use Debt Recovery > Debt Recovery referrals > OPRH Adj Req for Debt Waiver
• select Confirm
• record relevant information as required. The Fast Note will:
• create a DOC, and
• automatically refer to Debt recovery staff requesting the repayment history be adjusted to allow the waiver to be applied

Debt Staff:

• select the debt to waive from the Debt List (OPDL) screen
• go to the Repayment History (OPRH) screen. Adjust the last payment by $0.01 cent. Note: reverse this before finalising the debt

The debt waiver applies also to the 10% Recovery Fee and Interest Charge.

Recovery Fee:

• remove the 10% Recovery Fee
• if waiving part of a debt, recalculate the 10% Recovery Fee

See Effect of waiving a debt on the recovery fee.

Interest Charge (IC)

The system will:

• recalculate the IC
• refund the customer

No manual action is needed. The system adjusts all records overnight.

The IC is a debt under the legislation and the same recovery rules apply.

For more information, see Transfers and refunds.

Code these fields:

• Date of Notification:
• 'Y' for yesterday
• 'T' for today
• the date the customer advised the change that resulted in the overpayment. This is whether or not they advised in the notification period
• Was debt solely due to system or clerical error?
• 'N' = debt not due to system or clerical error
• 'S' = debt due solely to system error
• 'C' = debt due solely to clerical error

Code these fields on the OPWAA screen:

• Amount Waived $ - the amount of the debt to be waived
• Reason Waived:
• 'ADE' for pre 1 October 1997
• 'CER' for post 1 October 1997
• 'SER' for system error
• Comments, briefly explain why the debt is being waived

Press [Enter]

If Debt Staff adjusted the last payment by $0.01 cent, reverse this on the OPRH screen before finalising the debt.

Finalise the activity on the Assessment Finalisation (OPAF) screen.

If the customer has already been advised of the debt:

• contact them to advise the new decision to waive the debt
• make 2 genuine attempts to contact the customer
• send a Q053 letter if unable to contact, see approved text

Note: for more information, see General Centrelink debt recovery information.

Record details on a DOC. Minimum DOC standards for debt waivers.