Using the correct date of effect when raising debts 107-03010010

A potential debt exists when a determination:

• reduces
• cancels, or
• suspends a payment

A debt exists where:

• the date of effect (DOE) of a determination is earlier than the date-paid-to, and
• the payment made was more than the new rate

Consider the date of effect when making a decision following an event or change in a customer's circumstances.

Record the reason for a determination taking effect from a date before the date of decision. A significant decision must be based on relevant facts, evidence and supporting legislation. Record the decision as per the Online Document Recording (ODR) standards.

These customers fall into two categories:

• Statement reporters - Payments are not issued if the customer fails to report on their required reporting day. They must report any changes before or on their reporting date (EPED)
• Notification reporters - Must report changes in their circumstances within a certain time period, usually 14 days. A notification reporter's payments are made regularly and the customer does not have to report to receive their payment

The notification period commences on the day after the event. The end date is deferred to the next working day if the end date is a weekend or public holiday. Customers have 28 days to report:

• when overseas
• bereavement events

Check the customer's notification period by reading the last customer advice before the event that created the debt.

Under the Student Assistance Act 1973, ABSTUDY customers must advise of a change in circumstances within 14 days of the event.

The date of effect (DOE) of an unfavourable determination depends on:

• whether the customer is a notification reporter or a statement reporter
• the date of event (DOV) of the change in circumstances
• the date of receipt (DOR) of the change
• the date the change is actioned, and
• whether Working Credit rules apply

See the References page for Detailed summary of DOE rules.

The Date of Event (DOV) for incarcerated customers is the date the customer's social security payment is no longer payable. That is, the day after the incarceration of the customer.

NOHL rule 99 applies because of manual coding on the Benefit Action (BA) screen. To determine the correct debt period consider notification provisions before raising the debt.

Automatic cancellation provisions apply where the prison:

• is not acting on behalf of the customer, and
• notifies Services Australia of the incarceration before the customer complies with their own notification requirements

This means the social security payment ceases to be payable from the DOV.

See Notification Handler (NOHL) for more information about the notification and DOE variations for unfavourable decisions.