Raising Assurance of Support (AoS) debts 005-03060000

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For example, the assuree claims fraudulently, the assuree incorrectly declares earnings:

• Where a recoverable payment is made to an assuree in accordance with social security law during the AoS period:
• An AoS debt is raised by the AoS processing team under section 1227 of the Social Security Act 1991
• Liability for repayment of an AoS debt rests with the assurer/s
• If the assuree is paid an amount to which they are not entitled, and it is determined this amount is a legally recoverable debt. The:
• debt is raised against the assuree under the relevant legislation (for example, section 1223 of the Social Security Act 1991)
• assuree, not the assurer, is liable to repay these amounts
• normal debt raising procedures are to be followed, including consideration of non-recovery (for instance, waiver)

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• An AoS debt cannot be waived due to administrative error, as section1237A of the Social Security Act 1991 only applies where the payment is received by the debtor (assurer). An assurer does not receive the payment so section 1237A does not apply. For example:
• Where an assuree had received an incorrect rate of recoverable payment, due to an administrative error. Although the error was administrative, the payment was made to the assuree rather than the debtor
• The debt cannot be waived due to administrative error as the assuree is not the debtor in the AoS case
• Section 137AAE of the Social Security Act 1991 strengthens debt recovery provisions by imposing extra rules when considering the waiver of AoS debts. These rules prevents a waiver of debt:
• if the assurer/s claim they were unaware of the obligations of providing an AoS. This is because the potential assurer must attend an interview with Services Australia where they will have these obligations explained to them. They must then confirm that they understand these AoS obligations
• amounts which are lower or equal to the bond amount irrespective of whether the AoS was provided by a single assurer or joint assurers

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Having problems using the PS Tool?

Problems loading the Payment Summary Tool (PS Tool):

• Use Microsoft Edge to launch the PS Tool. If it does not work, re-run/run the 365 Apps Fix for Appeals and Compliance Macro Tools - Run (available from the Software Centre)
• Only have Customer Record open. Close any Process Direct and Customer First windows

For help using the PS Tool, see:

• Payment Summary Tool
• Payment Details Download Sheet (PS Tool)

What dates do Io use in the PS Tool when calculating debts?

The PS Tool captures the whole fortnightly payments. If the AoS start date and expiry date (debt start and end date) falls in any day within the last fortnightly payment, but not the end date of the fortnightly payment, manually calculate the debt amount for that fortnight.

Example

Yearly Review period 08/10/2023 to 07/10/2024:

• First entitlement period that contains the review start date is 03/10/2023 to 16/10/2023 with a gross amount of $896.56. As the Yearly Review starts on the 08/10/2023, do not count the first 5 days of the payment:
• Calculate the daily rate by dividing the payment amount by the number of days in the payment period. In this case, it will be $896.56 / 14 = $64.04
• As the first 5 days are not counted, calculate the daily rate by the remaining number of days. In this case $64.04 X 9 = $576.36
• Last entitlement period that contains the review end date is 01/10/2024 to 14/10/2024 with a gross amount of $930.44. As the Yearly Review ends on the 07/10/2024, do not count 7 days of the payment:
• Calculate the daily rate as per above. In this case $930.44 / 14 = $66.46
• As the last 7 days are not counted, in this case $66.46 X 7 = $465.22

Coding the OPCA screen when raising a manual debt?

For payments where the entitlement period falls across 2 financial years, only include payments paid in that financial year.

For example, EPED 30/06/2024 but delivery date 01/07/2024, include that last payment in the 2024/2025 financial year.