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 prior to 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.

• raise the debt using the Debt Action Script, go to Step 4
• raise the debt manually, go to Step 5

For further information on calculating debts, see

• General debt management information, and
• Debt raising

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

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

From the Activity List (AL) screen go to the Add Debt (OPAD) screen.

• To add the debt details, complete the following fields:
• Benefit Type: type of payment the customer received
• Reason: reason for the debt
• Section of Act: section of the Act under which the debt is raised
• Date of Event: date the change in circumstances occurred
• Date of Notification: date the customer notified the change in circumstances
• Start Date: debt start date
• End Date: debt end date
• Calculated Amount $: actual amount of debt
• Estimated Amount $: estimate amount of debt
• FND Reason: reason for 'finalising no debt'
• Addtnl Reference No: 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]
• The Account Payable (OPAOD) screen will be displayed

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

Enter 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 the following fields:

• Total received $:
• Contact Name:
• Contact Telephone:
• Press [Enter] twice. The Assessment Finalisation (OPAF) screen will be displayed

For further information see Sending Account Payable letters.

• Enter 'Y' in the Finished?: field if the activity is completed
• Enter 'N' in the Finished?: field if the activity is not completed
• Enter 'Q' in the Finished?: field if the activity is completed but requires checking
• Record details of the debt on a DOC