Debts arising from commutation of asset-test exempt income streams 107-04020120

The customer has made a commutation from their asset-test exempt income stream product.

Note: income streams that comply with requirements in sections 9A, 9B or 9BA of the Social Security Act 1991 are asset-test exempt (ATE).

• All ATE income streams purchased before 20 September 2004 receive a 100% assets test exemption
• ATE income streams purchased on or after 20 September 2004 and before 20 September 2007 are 50% asset-test exempt
• Income streams purchased from 20 September 2007 will be fully asset-tested
• Provided certain conditions are met, certain ATE income streams will be allowed to retain 100% of 50% asset test exemption if they are:
  • purchased before 20 September 2007, and
  • commuted and rolled over into a post 20 September 2007 ATE income stream

The References page contains more information.

Is the commutation allowable?

• Yes, go to Step 2
• No, go to Step 3

Record a DOC with the details.

Procedure ends here.

For further information on calculating debts, see

• General debt management information, and
• Debt raising

To raise the debt:

• using the Debt Action script, go to Step 4
• manually, go to Step 5

Follow the prompts of the Debt Action script to raise the debt.

Before starting the script, see Safeguarding customer privacy when raising and recovering debts. Take the appropriate actions to protect the customer’s privacy.

See General debt raising information for assistance.

From the Activity List (AL) screen go to the Add Debt (OPAD) screen. To add the debt details, complete these fields:

• Benefit Type, key payment the customer received
• Reason, key reason for the debt
• Section of Act, key section of the Act under which the debt is raised
• Date of Event, key date the change in circumstances occurred
• Date of Notification, key date the customer notified the change in circumstances
• Start Date, key debt start date
• End Date, key debt end date
• Calculated Amount $, key actual amount of debt
• Estimated Amount $, key estimate amount of debt
• FND Reason, key reason for 'finalising no debt'
• Addtnl Reference No, key reference to link to another customer, service provider or external organisation
• Was debt solely due to system or clerical error?, key:
  • N for no
  • S for system, and
  • C for clerical error

Press [Enter] to view the Account Payable (OPAOD) screen.

Does the s1223A debt meet the requirements for waiver under the either following class of debt waiver: permanent or temporary debt reliefs?

• Yes, go to Step 9
• No, go to Step 7

See Safeguarding customer privacy when raising and recovering debts, before issuing any debt notices. Take the appropriate actions to protect the customer’s privacy.

Key a detailed explanation of why the debt was raised, under the heading ‘Why This Amount Is Payable’. The text entered will appear on the Account Payable. Remember to:

• use plain English
• ensure the reason is clear and easy to understand
• include references to legislation

Complete these fields:

• Total received $
• Contact Name
• Contact Telephone

Press [Enter] twice to view the Assessment Finalisation (OPAF) screen.

See Sending Account Payable letters.

In the Finished? field, key:

• Y if the activity is completed
• N if the activity is not completed
• Q if the activity is completed but requires checking

Record details of the debt on a DOC.

See Waiving Centrelink debts for assistance

If a DMN/NDB activity exists on the Activity List (AL) screen:

• use the Debt Action script
• 'S'elect the Debt ID (undetermined or determined) to be waived and follow the screen flow
• Reason for debt waiver coded should be 'Class of debt' (COD)
• follow the screen flow to finalise the activity

Complete updates manually if the Debt Action script is unavailable:

• 'S'elect the Debt ID to be waived from the Debt List (OPDL) screen and press [Enter], or
• 'S'elect the DMN/NDB activity on the Activity List (AL) screen (if one exists) and press [Enter]

The Modify/Assess Debt (OPMA) screen will display

• complete the required fields. See Table 1 > Step 5 in Actioning an undetermined debt on the Debt Management and Information System (DMIS)

Go to the Add Waiver (OPWAA) screen and complete these fields:

• Debt Amount Waived $: key the amount to be waived
• Int Chg Amount Waived $: key the amount of interest to be waived
• Reason Waived: 'COD' - Class of debt
• Comments: key a brief explanation of why the debt is being waived
• press [Enter]

Finalise activity on the Assessment Finalisation (OPAF) screen.

Go to the Recovery Fee (OPRF) screen and complete the relevant fields if the debt is due to personal exertion.

Note: waiving a debt and Interest Charge amount in the same activity cannot occur. Complete these actions in 2 separate waiver transactions.

The DOC must contain:

• details of the debt:
  • the decision itself
  • the Act/Guide reference upon which it is based
  • the reason for making the decision, including detail of information viewed when making the decision, and
  • the reason waiver is or is not appropriate
• evidence and calculation sheets used to determine the debt

For more information, see:

• Calculating Centrelink entitlements and gathering information when investigating debts, and
• Recording reasons for decisions

Mark documents placed on file in relation to a debt 'Overpayment - Do Not Destroy'. See Storing scanned documents.