Explaining and actioning negative adjustments on the Assessment Results (AR) screen 107-02020030

If a negative adjustment results from a reassessment of a customer’s record, it is the responsibility of the Service Officer undertaking the reassessment to advise the customer of the result.

The Service Officer, having just recorded the change/s leading to the negative adjustment, is best placed to provide the customer with an explanation. For assistance in identifying and explaining a negative adjustment, see the Process page.

Identifying negative adjustments that auto raise on completion of the activity

A negative adjustment resulting from earnings coded for a past period, where the duration is one fortnight or less, will automatically raise on completion of the earnings activity. This occurs regardless of whether the earnings coding is staff assisted or the customer has provided the update using online services. These debts can be identified by the:

• duration of the debt, that is, debt period is from 1-14 days, maximum, and
• debt reason code is IEA – Income Earnings Automatic. The reason code is located on the Debt List (OPDL) screen under Reason

Explaining a one fortnight duration earned income (IEA) auto raised debt

This type of debt occurs where the customer has initially under-declared or failed to report their employment income. When the income is corrected or reported, a recalculation of the customer's entitlement identifies a debt for one entitlement period only. These debts are automatically raised by the system.

Reassessment of a customer's entitlement may lead to:

• underpayment (positive adjustment), or
• overpayment (negative adjustment)

An investigation of a negative adjustment can result in:

• no recoverable debt
• a recoverable debt raised
• a recoverable debt raised and partially waived
• a recoverable debt fully waived

Debts less than $50 are waived automatically. However, the following debts are excluded and must be investigated:

• Family Assistance
• ABSTUDY
• Assistance for Isolated Children (AIC) Scheme
• Pensioner Education Supplement (PES) debts

Consider:

• what action generated the debt
• if the debt is legally recoverable

Before making a decision on further action, Service Officers must:

• check the system to establish payment history
• determine whether the customer has complied with the notification provisions
• determine whether relevant protocols were followed

Debts are raised automatically upon finalisation of an earnings or payment stimulus activity or workflow where the:

• debt relates to an income support payment that is recoverable under the Social Security Act
• debt period is not greater than 14 days (one fortnight) in duration
• debt does not include a Student Start Up Scholarship, Relocation Scholarship or Carer Supplement Payment, and
• customer does not have a deceased estate pending, bankruptcy or imprisonment debt write off in place

During a conversation when updating earnings, the customer must be told about:

• the debt, and
• their internal review options