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

An undetermined debt will generate when the customer:

• is on variable reporting
• has been paid for past period in the variable reporting cycle, and
• their payment has been cancelled because they did not report at the end of the variable reporting cycle. Cancellation reasons will be either:
  • Did not lodge (DNL), or
  • Failed to report (FRP)

The Early or late lodgement of job seeker reports process must be followed when a customer reports after their payment has been cancelled DNL or FRP.

Is the customer's payment to be restored?

• Yes, go to Step 4
• No:
  • staff responsible for raising debts only, go to Step 2
  • all other staff, code any new information provided by the customer. Record the details on a closed DOC. Procedure ends here

Is the Debt Action script available?

• Yes:
  • Follow the prompts of the Debt Action script to raise the debt
  • Go to Step 5
• No, go to Step 3

Go to the Activity List (AL) screen:

• Select the undetermined debt activity
• Press [Enter]
• Complete the following fields:
  • Reason
  • Section of the Act
  • Date of Notification
  • Calculated Amount
  • Was debt solely due to system or clerical error
  • Select [Enter]

Enter a '?' in each field for further information.

The Account Payable (OPAOD) screen displays.

• Enter information under WHY THIS AMOUNT IS PAYABLE. Clearly explain why there is a debt. The information will be used by staff in other areas of the agency to explain the debt to the customer
• Complete the following fields:
  • Total Received $
  • Contact Name
  • Contact Telephone

The Assessment Finalisation (OPAF) screen will display. Select either:

• 'Y' - activity finished
• 'Q' - activity finished, to be quality checked
• 'N' - activity not finished

Record all details on a DOC.

Go to Step 5.

An undetermined debt will generate when a payment is cancelled with a date in the past. It will be on the AL screen. Leave the debt activity on the AL screen.

• Go to the Benefit Actions (BA) screen
• Commence a restoration activity
• Within the restoration activity:
  • code any changes of circumstances other than employment income, for example, relationships changes, amount of rent. Note: information with a different date of receipt will need to be coded separately, before the restoration
  • launch the Earnings and Reporting workflow
  • code any employment income within the workflow
• A message displays advising arrears of $$$$.cc have been offset against Debt ID xxxxx

Rate of payment has not changed

Arrears automatically reduce to zero and appear on the Assessment Results (AR) screen with code A, not M as they do when manually adjusting arrears:

• the amount of the arrears will equal the amount of the debt tag
• the system will match the arrears to the debt:
  • arrears will not pay
  • the undetermined debt will Finalise - No debt, with reason code Payment Restored Automatically (PRA)

Rate of payment has changed

The amount of the arrears may not equal the debt tag when the customer:

• has had a change of circumstances in a past period
• they have already been paid for that period

Advise the customer if a debt may still be raised.

Check any arrears paid are correct.

If the customer's tax details need to be adjusted as a consequence of raising the debt, make the tax adjustments.

Does the change reduce the customer's rate of payment?

• Yes, go to Step 3
• No, go to Step 2

Update the change on the system, check for any underpayment and issue any arrears. Record details on a DOC. Procedure ends here.

Did the customer advise within the recipient obligation notification period (usually 14 days)?

• Yes, update the change and record details on a DOC. Procedure ends here
• No, go to Step 4

Was a copy of the recipient notification obligations sent to the customer's last known address?

• Yes, go to Step 6
• No, go to Step 5

Where a change in circumstances result in a negative adjustment or excess payment, a debt may not apply. This is when no customer notification of their requirements to advise of changes in circumstances occurred.

To determine whether the excess payment is legally recoverable, see Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable.

Record details of action taken on a DOC. Procedure ends here.

A debt can exist if a negative adjustment or excess payment has

• resulted from the change in circumstances and
• it is legally recoverable, a debt results and is recoverable

Complete the following actions

• Calculate the debt
• Determine if a recovery fee should be applied
• Action the debt in DMIS
• Manage recovery and non-recovery

Record details of action on a DOC.