Recovering debts from organisations 107-05090060

An organisation record will show M9890 Customer is an organisation at the top of the screen.

Organisation debts will only show in the environment in which it was created. For:

• Customer First, select Y to ‘swap to organisation environment’
• Customer Record:
• go to the Organisation Details (ORD) screen
• key Yes to swap to organisation environment

For help with locating organisation payment information, see the Resources page.

Is the customer an organisation?

• Yes, go to Step 2
• No, see Debt recovery for Centrelink. Procedure ends here

Check that the person is an authorised contact person via these screens:

• Organisation Service Contact Summary (OSCS), or
• Organisation View Contact (OVC)

Note: the authorised Debt Staff contact will have a DMN Service Reason next to their name.

For:

• Active (Outbound) recovery, go to Step 3
• Assisted (Inbound) recovery, go to Step 4

Explore all reasonable avenues to recover the debt. This may include:

• multiple contact attempts to resolve any issues or disputes
• talking to more than one person
• debt explanations
• sending copies of relevant forms or letters

Note: Debt Staff must not search for employees personal details. For example, home address, mobile phone numbers.

Have attempts to contact the organisation resulted in a successful engagement?

• Yes, go to Step 4
• No, consider if the debt is still recoverable. See Non recovery of organisation debts

To:

• make an arrangement, go to Table 2, Step 1
• consider a write off or waiver, see Non recovery of organisation debts

Not all methods of recovery apply to each organisation.

Check the Authority field on General Information (OPGI) screen.

For:

• Student Assistance Act, go to Step 2
• Paid Parental Leave Act, go to Step 3
• Family Assistance (Administration) Act, go to Step 4
• Social Security Act or Social Security (Administration) Act, go to Step 5

Recover organisation debts raised under the Student Assistance Act through:

• cash payments, go to Table 3, Step 3
• legal proceedings, go to Table 3, Step 9

PPL employers can make debt repayments by electronic funds transfer (EFT). This facility is only available as a last resort. See Garnishee of continuing income to recover debts.

Recover organisation debts raised under the Paid Parental Leave Act through:

• cash payments, go to Table 3, Step 3
• legal proceedings, go to Table 3, Step 9

Recover organisational debts raised under the Family Assistance (Administration) Act through:

• withholdings, go to Table 3, Step 1
• cash payments, go to Table 3, Step 3
• legal proceedings, go to Table 3, Step 9

Recover assurer debts through Assurance of Support Bonds. Once the bond funds are exhausted, recovery can start through other methods.

Recover organisational debts raised under the Social Security or Social Security (Administration) Act through:

• cash payments, go to Table 3, Step 3
• legal proceedings, go to Table 3, Step 9

Withholdings will apply to Approved Care Organisations (ACOs) that are current on FTB.

An ACO will only get base FTB Part A for each child in their care. The standard rate of withholdings for base rate Part A is 95%.

If the ACO also gets the Energy Supplement Part A per child (FTB CESA), the standard rate of withholdings will decrease to 25%.

A non standard rate of withholdings must meet the Family assistance minimum acceptable withholding levels. The Money You Owe withholdings rates are not available to organisations.

See Standard withholdings for debt recovery.

Is a change to the withholdings rate required?

• Yes, go to Step 2
• No, procedure ends here

To code a change in the existing withholdings rate use the Debt Recovery script to code the below:

• key ‘OPAL’ in the Nxt field > [Enter]
• select the CUR withholdings arrangement from the top of the list > [Enter]
• key ‘T’ in the Cease Date field > [Enter]
• on the OPAL screen, key 'WHS' in the Create new arrangement type field > [Enter]
• complete these fields on the OPWH screen:
• Withholding Type, key FTB
• Non Standard Amount $, key the dollar amount to be withheld
• Non Standard Amount %, only use for 100% withholdings
• Comments, key any comment relevant to the discussions
• key 'OPAF' in the Nxt field > [Enter]
• key 'Y' in the Finished field > [Enter]
• record the details on a DOC and include:
• CRN balance
• debt ID/s
• withholdings amount
• withholdings start date
• reason why non standard withholdings are in place
• details of any arrangement reviews

The system will send a letter advising the amount to be withheld.

FTB withholdings do not have an arrangement end date. ACOs will not form part of the automatic withholdings end date reviews.

Procedure ends here

The recovery rates for organisations differ to the rates for individuals. Recover organisation debts in the following order:

• payment in Full by the due date
• extension for a further 14 days
• regular payments that recover within 90 days
• regular payments that recover within 12 months

Note: where an organisation has debt/s written off Other Recovery Action (ORA), pursue recovery on remaining debts.

Will the organisation agree to payments that recover the debt within the required guidelines?

• Yes, go to Step 6
• No, go to Step 4

If an organisation cannot afford the payment rates, accept a lesser amount. After 3 months renegotiate the arrangement to increase payments to meet guidelines.

Can the organisation make regular ongoing payments?

• Yes, go to Step 6
• No, go to Step 5

Can the organisation meet their normal expenses?

• Yes, negotiate a suitable payment arrangement. Go to Step 6
• No, consider a temporary write off. See Non recovery of organisation debts.

PPL employers have a separate reference number for each Debt ID. They cannot make bulk payments using BPAY® or the barcode on their letters.

To ensure correct receipting, they must make a separate payment for each debt. For:

• BPAY®, use these biller codes:
• 303867 for PPL employers
• 21915 for all other organisations
• organisations should check with their bank before using a credit card as additional charges may apply for BPAY® payments
• Australia Post, use offices or outlets that accept EFTPOS or cash using the barcode. To ensure correct receipting, PPL employers must make a separate payment for each debt
• Phone, use Australia Post’s POSTbillpay code 0802
• Mail, cheques are not the preferred method of payment. Cheques are payable to the ‘Collector of Public Monies’. Send the cheque to the Debt Finance Team. Organisations should include their:
• CRN on the back of the cheque and
• details of debt id/s
• EFT (PPL employers only). Use EFT to pay debts when other payment options are not suitable. This option is a last resort

Note: do not code Direct Debit arrangements for organisations.

Is the organisation intending to make:

• both an irregular and regular cash arrangement, go to Step 7
• an irregular cash arrangement, go to Step 7
• a regular cash arrangement, go to Step 8

Use the Debt Recovery script to code the following:

On the Activity List (AL) screen, 'S'elect the DMN/RCV No Arrangement activity > [Enter].

Note: if there is no DMN/RCV activity, key 'OPAL' in the Nxt field > [Enter].

• in the Create new arrangement type field, key 'IRR' > [Enter]
• complete these fields on the Irregular Cash Payments (OPIC) screen:
• Agreed Date, key the date the agreement was made. This must be today's date or less than 7 days in the past
• Amount $, key the payment amount
• Expected date, key the agreed payment date. It must be today’s date or later
• Comments, key any relevant comments
• press [Enter]
• go to the Assessment Finalisation (OPAF) screen
• key 'Y' in the Finished? field > [Enter]
• record the details on a DOC and include:
• CRN balance outstanding
• the irregular cash payment amount/s
• the date/s of the irregular cash payment/s
• the payment method. For example, BPAY®
• the specific Debt ID/s for the payment
• specific warnings provided. For example interest charge, legal action
• the Section of the Act
• any other relevant details from the discussion

The system will send a letter confirming the arrangement.

Is a regular arrangement also required?

• Yes, go to Step 8
• No, procedure ends here

On the Activity List (AL) screen, 'S'elect the DMN/RCV No Arrangement activity > [Enter]. If there is no DMN/RCV activity, key 'OPAL' in the Nxt field > [Enter].

In the Create new arrangement type field, key 'CSH' > [Enter]:

• complete the below fields on the Regular Cash Payments (OPRC) screen
• Agreed Date, key the date the agreement was made. This must be today's date or less than 7 days in the past
• Pay start date, key the date of the first payment. It must be today’s date or later
• Amount $, key the payment amount
• Frequency, key the frequency of the regular cash payment
• Comments, key any relevant comments
• press [Enter]
• go to the Assessment Finalisation (OPAF) screen, key 'Y' in the Finished? field > [Enter]
• record the details on a DOC and include:
• CRN balance outstanding
• the regular cash payment amount
• the date the instalments are due to commence
• the payment method. For example, BPAY®
• the specific Debt ID/s for the payment
• specific warnings provided, for example interest charge, legal action
• the Section of the Act
• any other relevant details from the discussion

The system will send a letter confirming the arrangement.

Procedure ends here.

Organisations with debts over $10,000, that have the capacity to pay, may be suitable for civil recovery action. The level of income and assets determines capacity to pay.

Only use the civil recovery option if all administrative options are explored. This includes voluntary arrangements.

The Litigation Team will decide if the agency starts civil procedures to recover debts. Refer cases to an APS5 or above in the Specialised Recovery Team (SRT).

Note: civil action does not include organisations in administration or liquidation. The Debt Administration and Bankruptcy (DAB) Team manage these cases.

See:

• Non recovery of organisation debts
• Civil procedures to recover Centrelink debts

Is a referral for civil action required?

• Yes, refer the file to the Operational or Team Leader. Procedure ends here
• No, consider other methods for recovery. Procedure ends here