Raising debts resulting from a failure to report or notify 001-09040160

Customers who report every 4, 6, 8, 10 or 12 weeks are on variable reporting. They need to lodge their report at the end of their variable reporting cycle. As customers on variable reporting are paid fortnightly, a debt activity may occur if:

• the payment should be cancelled before their reporting day, or
• they fail to lodge their report

A debt activity will generate an amount equal to the amount paid to the customer since:

• their last due to report date, or
• from the day their payments should have been cancelled

Service Officers who accept the report must follow the Early or late lodgement of job seeker reports when a customer reports after their payment has been cancelled:

• Did not lodge (DNL), or
• Failed to report (FRP)

Contravention debts result from a failure to notify or a misrepresentation of circumstance. The failure does not have to have been intentional.

The Section of the Social Security Act 1991 used to raise contravention debts changed on 1 July 2001:

• before 1 July 2001, use subsection 1224(1)
• on or after 1 July 2001, use subsection 1223(1)

There has been no change to debts raised under other sub-sections of 1224.

Pensions and benefits are paid under the Social Security (Administration) Act 1999. Payments can be terminated if the customer loses qualification for payment and they have:

• failed to notify of a change of circumstances
• mis-represented their circumstances

Where this occurs, the social security payment is not payable from:

• the date the event or change of circumstances occurred, or
• the first day in that period specified in the notice issued under the termination provisions in the Act

The rate of payment received by the customer is based on their circumstances. A contravention debt will occur where a customer's rate should have been reduced, but it wasn't because the customer:

• failed to notify of a change of circumstances
• misrepresented their circumstances

Contravention debts are treated the same whether they involve a loss of qualification or a rate reduction.

Consider applying a recovery fee to working age payment customers who:

• refuse or fail to provide information about the person's income from personal exertion, or
• provide false or misleading information about the person's income from personal exertion

The Resources page of Recovery Fee applied to debts resulting from incorrect declaration of income contains a list of payments that may attract a recovery fee.

After a debt has been raised, Debt staff are responsible for making adjustments to the debt.

Use Fast Note to refer the case to the relevant Debt Team. See the Resources page in Debt ownership for referral details.