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.

Waiver criteria:

• the payment causing the debt was due solely to administrative error
• the customer received the payment in good faith and recovery of the debt would cause the customer severe financial hardship, or
• the customer received the payment in good faith and 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

Waiver criteria:

• 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
• 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 wilfully overlooked their circumstances. See the Resources page in Table 1 > Item 2 for an example
• 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 Table 2 > Step 1
  • for CCS debts, see 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, start 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
• section of the Act the debt is being waived under
• 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. 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.