Negotiation of debt repayments with customers 107-05010100

• The phone is the primary contact method
• Negotiate the debt as soon as possible after it is raised
• Negotiate to achieve the best repayment method
• The preference is payment in full by the due date
• If the debt cannot be paid in full, a repayment arrangement may be negotiated
• Only send contact letter after genuine attempts at contact by phone have failed
• Send a letter to confirm negotiations

The system will offset debts using tax refunds or lump sum family assistance payments if the debt is:

• Family Tax Benefit (FTB), or
• Child Care debt

FTB top-ups, lump sum payments or FTB Instalment arrears may also be used to offset Social Security, Student Assistance or Paid Parental Leave debts. This can occur even if there is a current repayment arrangement in place. For more information, see Debt offsetting during family assistance reassessment, reconciliation and claim processing.

Note: Debt Staff must not encourage or suggest the customer take out a loan to pay the debt.

Follow quality customer service standards.

Debt Staff should advise customers they have a legal obligation to notify within 14 days of any change of address. This is while a debt is still owing regardless of whether they are current on a payment or not. Failure to provide an address or financial information (if requested) is an offence with a penalty.

The References page contains a link to the relevant section of the Social Security (Administration) Act 1999.

Customers can set up a payment arrangement within the Money You Owe option online. Arrangements will be accepted where the debt is:

• less than $5,000 and paid within 12 months
• between $5,000 and $10,000 and paid within 24 months
• $10,000 or more and paid within 12 months