Raising ABSTUDY debts 107-09120050

If the debt relates to:

• missed travel for ABSTUDY Fares Allowance or Away from Base, go to Raising Fares Allowance (FAA) debts. Procedure ends here
• employment income and income apportionment before 7 December 2020, do not raise the debt. Warm transfer the customer to the CLKDebtIncomeApportionment line using Services Australia Workspace. Procedure ends here

Is the ABSTUDY debt equal to, or above, the small debt waiver threshold?

• Yes, go to Step 2
• No:
  • finalise the activity as a small debt waiver will apply automatically
  • procedure ends here

Check if the debt meets one of the ABSTUDY debt raising criteria:

• the debt shell was created less than 3 years ago (regardless of the entitlement period it relates to) and the debt amount is equal to, or above, the small debt waiver threshold, or
• the customer/organisation asks for the debt to be raised

Does the debt activity meet either of the above criteria?

• Yes, go to Step 3
• No, do not action the debt activity. Escalate the work item via Workload Management > Workload Management - Technical Support > Technical Assistance > WLM Technical Assistance form. When completing the form, in these fields:
  • Programme, select Working Age
  • Sub Programme, select ABSTUDY
  • Escalation reason, select Workload Management assistance to find workload solution
  • procedure ends here

Review relevant details to clearly understand why the decision was made. See:

• Investigating the source and cause of the debt
• Calculating Centrelink entitlements and gathering information when investigating debts

If required, after investigating the original decision:

• process any reassessment required because of new information or errors in the original decision. If arrears generate for a period within the debt period, on the Assessment Results (AR) screen:
  • select Abstudy (top left corner) > Rate Details (RATS)
  • reduce each payment period that is within the debt period to $0.00. Note: record details of the total reduction amount
  • in the Man Adj Reason, key ADJ > Continue
  • finalise the activity
• the finalised activity can be accessed via the Event Summary (ES) screen, if required
• give feedback to the decision maker, if appropriate

Is the debt legally recoverable?

• Yes, go to Step 4
• No, go to Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable. Procedure ends here

Consider if the debt is eligible for a waiver.

If the debt can be waived, go to Waiving Centrelink debts. Procedure ends here.

If the debt cannot be waived and the associated debts being raised with the customer:

• is a single debt, go to Step 6
• are multiple debts, the script will detect if there is more than one undetermined debt. See Table 2 > Step 4 in Actioning an undetermined debt on the Debt Management and Information System (DMIS). If these debts will:
  • be amalgamated, go to Step 5
  • not be amalgamated, go to Step 7

See Using ADEX to explain a system generated debt to assist in calculating the total debt amount:

• if multiple debt periods are found, add all relevant debt totals together to calculate the total debt amount
• once the debt total has been calculated, any remaining undetermined debts will need to be finalised ‘no debt’. Follow the steps in Table 2 of Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable

Note: calculate the total amount for each benefit type and component (for example, Living Allowance, Rent Assistance (RA), Clean energy supplement) to code the Component Amount (OPCA) screen.

The Resources page of Actioning an undetermined debt on the Debt Management and Information System (DMIS) provides examples of debt amalgamation.

When only one debt shell remains, go to Step 6.

Check the debt(s) to see if any arrears have occurred within the undetermined debt activity. For guidance, see Table 2 > Step 5 of Actioning an undetermined debt on the Debt Management and Information System (DMIS).

Have further arrears been generated or identified within the debt period?

• Yes, go to Step 7
• No, go to Step 8

Determine if arrears can be used to offset the debt. If arrears were:

• inside the debt period displayed on the ADEX, the arrears can be used to offset the debt amount, or
• generated and suppressed within the debt period only, the arrears may be used to offset the debt amount relating to the payee/ABSTUDY customer

For debt recalculation examples, see the Resources page in Using ADEX to explain a system generated debt.

Is the final debt amount less than the small debt waiver threshold?

• Yes, waive the debt using reason code SDW. See Small debt waivers. Procedure ends here
• No, raise the calculated debt amount, go to Step 8

Where a student has multiple payees, the system will calculate the period of entitlement, the overpayment and generate a debt shell for the responsible debtor(s).

Check the Payment Summary (PS) screen for details of the relevant payments for which the student did not qualify. Select the relevant payment(s).

The system will navigate to the Payment Details (PD) screen. The name and address of the payee is in the To field. The payee may be the student, the parent/guardian or the institution.

Raise the debt against the payee's record.

Check the Activity List (AL) screen for a DMN/NDB activity in the student's, parent's/guardian's and institution's (if applicable) records.

A payee is a person/institution/parent/guardian/applicant who received payments. The payee is usually the person who is responsible for repaying any debts the customer has incurred (for example, the debtor). For payments sent to private boarders, the payee is the parent/guardian or student.

The debtor for student payments could be the student, their parent/guardian/applicant or the institution where the student resides/attends.

Is the debt shell on the incorrect payee's record?

• Yes. Before raising the debt on the payee’s record, finalise 'no debt' (FND) the undetermined debt on the incorrect record. After the undetermined debt has been removed from the incorrect payee record:
  • use the Debt Action Script in Customer Record to generate a new debt shell on the correct payee’s record, or
  • create a new debt record manually on the Debt Management and Information System (DMIS) on the correct payee record
  • once the correct debt shell is created, go to Step 10
• No, go to Step 10

Contact the customer to advise them of the debt to be raised, see Debt raising support for customers.

Use the Debt Action script in Customer Record to raise the debt.

Note: if necessary, adjust the text of the Account Payable letter to suit the student's circumstances.

Is the guided procedure/script working?

• Yes, follow the prompts. Once completed:
  • ensure any paper documents used as evidence to support the debt are scanned to the record. See the Resources page in Storing scanned documents, and
  • record details of the raised debt on a DOC. Use Fast Note - select Debts > Debt Raising > ABSTUDY Debt Raised > Confirm
• No, go to Step 11

To manually raise the debt, see Table 2 > Step 10 of Actioning an undetermined debt on the Debt Management and Information System (DMIS).

The Modify/Assess Debt (OPMA) screen will display several populated default fields:

• continue to code these fields:
  • Reason, key the reason for the debt
  • Section of Act, key 39 (for Section 39 of the Student Assistance Act 1973)
  • Calculated Amount $, key the total calculated debt amount
• complete other fields as required
• press [Enter]

Before finalising the undetermined debt, check the:

• Component Amount (OPCA) screen. See Step 4 of Using ADEX to explain a system generated debt to confirm the OPCA matches the debt amount, and
• Account Payable (OPAOD) screen. For guidance, see the Resources page in Sending Account Payable letters

To finalise the raised debt:

• go to the Assessment Finalisation (OPAF) screen:
  • in the Finished? field, key Y > [Enter]
• ensure any paper documents used as evidence to support the debt are scanned to the record. See the Resources page in Storing scanned documents, and
• record details of the raised debt on a DOC. Use Fast Note - select Debts > Debt Raising > ABSTUDY Debt Raised > Confirm