Sending Account Payable letters 107-04010030

Account Payable letters:

• are sent to a customer or their estate
• generate automatically or can be created manually when updating the Account Payable (OPAOD) screen
• use the auto text option in the OPAOD screen, unless the options provided are not relevant, and
• print centrally after close of business each day

There are rules for entering free text on the Account Payable letters, see the Resources page.

Formal Account Payable letters:

• meet all legislative requirements for further recovery actions
• automatically generate 29 days before the flexible due date, if a debt pause is not in place
• authorised users may add debt attribute:
• DMNFOR to an undetermined debt before processing the debt. This enables informal Account Payable processing to be bypassed and BAU Formal Account Payable processing to apply
• NODMNAWO to the Debtor Attributes (OPDAT) screen. This enables BAU recovery processing to be applied to the customer, overriding the pause on debt recovery for a customer in a designated disaster area as recorded in the RDF table

Staff must send a manual Account Payable letter when:

• a deceased customer's debt is recoverable under the Public Governance, Performance and Accountability (PGPA) Act 2013
• a customer has a Carer Payment or Carer Allowance debt and a Carer Supplement debt
• a customer has a Cost of Living Payment debt caused by providing false or misleading information
• the automatic Account Payable letter has been suppressed

Make sure 4 weeks has passed since the customer's death before contacting the executor, either verbally or in writing. Send all debt notifications to the executor in a single notice that outlines the total debt balance.

Only disclose information to:

• the executor named in the will
• the public trustee
• a court, or
• the administrator of the estate

Nominee arrangements and Powers of Attorney cease at the time of death. They are not an authority to get details about the deceased person.

The will of the deceased person normally identifies executors. If a person dies without a will, their spouse, partner or next of kin can apply to the Probate Office of the Supreme Court for letters of administration.

Where the executor is known, reasonable effort must be made to contact them, before issuing a Q080 to explain the debts. See Requesting refunds and raising debts for deceased customer.

Staff in the Payment Assurance Operations Division who process Registrar-General's Office (RGO) Interventions should:

• include all outstanding debt details in the Q080 advice for executors, and
• use the approved text provided for these cases

Send all debt notifications to the customers' overseas address. Suppress the auto advices and send an initial Account including statement of recoverable amount (Q417).

The Account Payable letter must tell the customer:

• the issue date (the date of the notice)
• the reason for the debt, including a brief explanation of the reason
• the period of the debt
• the outstanding amount of the debt at the date of the notice. Include the 10% Recovery Fee if applicable. This will show the 10% Recovery Fee as a separate amount, clearly outlining the Recovery Fee has been applied
• the day on which the outstanding amount is due and payable. This is 28 days after the date of issue
• that an interest charge (IC) may apply to the debt in some circumstances. See Interest Charge (IC) warning
• that an IC may apply if the person fails to comply with a payment arrangement or it is terminated
• the contact details for enquiries or requesting a review about the debt
• data matching details, and
• the consequences should they not pay the debt

The Account Payable also includes a list of payment options for customers. This includes:

• automatic deductions (direct debit) from a financial institution account
• paying online via Centrelink Online account and the Express Plus Centrelink mobile app
• in person at any Australia Post office or postal outlet using a barcode
• using the telephone or Internet (via Australia Post's POSTbillpay facility)

The below Acts do not require that a person be specified as the contact:

• Section 1229 of the Social Security Act 1991, and
• Section 77 of the Family Assistance Act 1999

However, the letter must have contact details. Business decisions that require the approved Services Australia branding to be used, is also acceptable.

Note: Carer Payment/Carer Allowance and Carer Supplement debts must show the exact amount for each debt component.

For assistance with debt letters, contact the appropriate Level 2 Policy Helpdesk.

All automatic formal Account Payable letters include the IC warning.

Include the IC text in the manual Account Payable letter if the customer is eligible. When raising a new debt for a deceased customer, send a Q080 advice to executors. Use the approved text which includes 'We have determined that interest charges will not be payable in relation to this debt.'

See Interest Charge (IC) for Centrelink debtors no longer receiving payments.

Each customer, regardless of the debt amount or circumstance, will receive:

• an explanation of the debt and how it occurred
• an opportunity to provide further information
• guidance on preventing future overpayments
• consideration of waiver
• an explanation of review and appeal rights
• referral to internal or external support services (if appropriate), and
• negotiation of a reasonable payment arrangement or temporary write off for financial hardship

See Debt raising support for customers.

Consider if the customer needs Social Worker support. The References page contains links to Accountable Authority Instructions (AAI).