Replacing payment made to a deceased customer where payment was returned from financial institution 103-04040030

This procedure is currently under review.

This document outlines the procedure to replace a payment made to a deceased customer where the payment was returned from the financial institution. Services Australia has a responsibility to make sure that the customer's payment is replaced (if eligible) as quickly as possible.

Payments returned by a financial institution

When a payment has been returned to the agency by a financial institution, a Manual Follow-up (MFU) activity titled 'unsolicited refund' will appear on the customer's record.

For Child Care Subsidy (CCS) payments, check the Payment List in Workspace. Returned payments will have a Returns Reason in the text field. This shows as Returns in the Origin Text field. Returned payments will automatically reissue to the updated payment destination within 2 working days.

Before reissuing the payment to the estate, the Service Officer must check that:

• the customer's executor details have been recorded correctly (if applicable)
• there is an appropriate person that any outstanding amount can be paid to, and
• the customer was entitled to the payment

If the estate advises payment has not been received, and they have been advised by the financial institution that the payment has been returned, but it does not appear as a returned payment on the customer's record, no action is to be taken until the payment has been recorded as returned. Note: it can take up to 2 working days from the date payment was automatically returned to appear on the customer's record.

An appropriate person can be the next of kin, solicitor or executor handling the estate, or the person who has paid or is liable to pay the funeral expenses.

Payments returned via bank cheque

If a financial institution has returned a payment via bank cheque to a service centre, due to the payment being made to a closed or frozen account, a different process is to be followed. Note: it can take 2 or more working days from the date payment was returned by bank cheque to appear on the customer's record.

The Resources page has frequently asked questions and information on how to find Manual Follow-up (MFU) activities for returned payments, a link to the Notice to prepare a Refund Account (SF030) form, a link for ICT Service Desk referrals and a link for Level 2 Policy Help Desk referrals.

Related links

Initial contact after someone has died

Death of a family assistance payment customer

Confirmation of the death of an adult or child

Requests for information after someone has died