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Raising Family Pool debts 107-09120070

This document outlines information about the 20% family taper for the Parental Income Test (PIT) and how it is applied when calculating a dependent child's rate.

Family pool debts

Step	Action
1	Dependent customer Is the customer dependent? Yes, determine who is in the family pool No, this process does not apply
2	Debt calculation Calculate the amount of the debt. Apply the greater amount from the following tests to the customer's maximum payment rate: Parental Income Test (PIT) Personal Income Test: Personal Income Test and Income Bank for ABSTUDY, Austudy and Youth Allowance (YA) students and Australian Apprentices Personal/Partner Income Tests for students, trainees or Australian Apprentices Employment income
3	Legally recoverable debts Is the debt legally recoverable? Yes, go to Step 4 No, finalise the debt as 'no debt' (FND). See Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable
4	Waiver criteria Does the debt meet the criteria for waiver using any of the waiver provisions? Yes, waive recovery of the debt using the relevant waiver provision. Procedure ends here No, go to Step 5
5	Raising the debt Raise the debt by actioning the undetermined debt on the Debt Management and Information System (DMIS) using the Debt Action script. This will send the Account Payable letter to the customer and create a document on the customer's record.