Skip to navigation Skip to content

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

Expand/Collapse all sectionsExpand all


Example - Notification reporters with Income Earnings AUTO (IEA) debts registered from 6 December 2020

Table 1:

Item

Category

1

A notification reporter may incorrectly have a debt raised with the reason code IEA from 6 December 2020, if:

  • they report earnings paid within their 14 day notification period, and
  • the report is made after the end of the entitlement period in which the amount was paid

Example

Mary is an independent YAL student. She is required to report a change of circumstances, including being paid income, within 14 days of the date of event.

  • Mary is paid $1,000 on 17 December 2020
  • Mary's EPED is 18 December 2020. She is automatically paid at full rate at close of business
  • Mary reports her earnings on 21 December 2020

Normally, Mary would not have a debt raised for the entitlement period ending 18 December 2020 because she met her notification requirements. Because of reporting changes from 6 December 2020, the system calculates an overpayment and generates a debt for the period.

As Mary reported her earnings within the notification period, the overpayment is finalised 'no debt' (FND) using the reason code NHL.

See Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable.