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Waiver of debts resulting from the assessment of lump sum arrears of a reversionary income stream 107-18092721

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For Debt Staff.

This document is about when to waive a debt incurred during a bereavement period from a lump sum arrears reversionary income stream payment.

Determining when to waive a debt

Expand table

Step

Action

1

Consider waiver

Determine if the debt meets one of the following waiver criteria under the Social Security (Waiver of Debts - Bereavement Period) Specification 2017:

  • The debt is a Social Security Act 1991 debt (or relevant part of such a debt) if the person receives a lump sum payment in arrears that meets all of the following:
    • occurs within a bereavement period or part of that period
    • reverted to the person on the death of a primary beneficiary with whom they were partnered
    • does not cover a period before 9 May 2018, and
    • the debt was not due to the customer knowingly providing a false or misleading statement
  • The debt is a Family Assistance (Administration) Act 1999 qualification debt (or relevant part of such a debt) where the person receives a lump sum payment in arrears that meets all of the following:
    • occurs within a bereavement period or part of that period
    • reverted to the person on the death of a primary beneficiary with whom they were partnered
    • does not cover a period before 9 May 2018, and
    • the debt was not due to the customer knowingly providing a false or misleading statement
  • The debt is a Family Assistance reconciliation debt (or relevant part of such a debt). If the person receives a lump sum payment in arrears that meets all of the following:
    • occurs within a bereavement period or part of that period
    • reverted to the person on the death of a primary beneficiary with whom they were partnered
    • does not cover a period before 9 May 2018, and
    • the debt cannot be attributed to the customer knowingly providing a false or misleading statement

Does the debt meet the criteria for waiver?

Procedure ends here.

2

Delegation

A staff member with the appropriate delegation can waive a debt.

See the Resources page for a link to Centrelink Services, Delegations and Authorisations. Select the Social Security Act 1991 General Powers document.

The Debt Management and Information System (DMIS) will not permit an officer to perform an activity outside of their delegation.

Does the staff member have the delegation to waive the debt?

3

Requesting a waiver

Create a detailed submission in a DOC.

Include details for the Debt Staff to consider the waiver:

  • 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
    • failure to comply with the relevant Act, whether by the customer or another person
  • factors that support waiver - generally the debt is resulting from the assessment of lump sum arrears of a reversionary income stream
  • why it is more appropriate to waive the debt rather than to write it off
  • see Minimum DOC standards for debt waivers

When the waiver submission is complete:

  • Debt Staff, escalate to Local Peer Support (LPS) with the appropriate delegation level. See the Resources page for a link to Centrelink Services, Delegations and Authorisations
  • All other staff, use Fast Note to refer the case to the relevant Debt Team. See the Resources page in Debt ownership for referral details

If a waiver outcome will result in an over recovered debt, do not tell the customer if a refund will be paid. Debt and Compensation Recovery Branch will decide this. They may refund or transfer the amount to other outstanding debts.

Procedure ends here.

4

Waive the debt

Delegate has determined that it meets all the criteria for waiver.

If the debt shell is undetermined, see Table 2 > Step 4 in Waiving Centrelink debts.

Go to the Add Waiver (OPWAA) screen:

  • in these fields:
    • Amount Waived $, key the amount of the debt waiver
    • Reason Waived, key COD
    • Comments, key a brief explanation of why the waiver is occurring
  • press [Enter]
  • finalise activity on the Assessment Finalisation (OPAF) screen
  • ensure the record is documented, see Minimum DOC standards for debt waivers

Is there a legally recoverable debt outside of the 14 week bereavement period?