Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable 107-05110010

Item

Description

1

Third party debts (TPD)

When a direct credit recall is not successful and the debt belongs to a third party:

• raise the debt on the third party record, and
• finalise the undetermined debt on the customer as FND

2

Multiple debt activities (MUL)

Finalise the extra debt activities as 'no debt' where:

• multiple undetermined debts are combined into one debt only, or
• an internal transfer results in more than one debt activity (MUL)

3

FTB reconciliation, old SSA family payment cases (FAM)

This does not include debts due to adding a partner income estimate as part of a relationship status change.

If a debt generates due to increasing a customer's estimated income and/or maintenance income for the purpose of receiving Family Tax Benefit (FTB):

• finalise the debt as FND, and
• wait until reconciliation when the actual and/or maintenance income is known

4

Manual date of event (COD)

Incorrect coding may result in a debt activity. Correcting the coding may show that there is no debt.

COD (incorrect coding).

This can include:

• income incorrectly recorded. For example, coding $600 instead of $60. When correcting the record to $60, a legal debt will no longer exist as there is no overpayment
• not using the correct workflow or procedure. This may result in an incorrect reassessment of the record. After correcting the record, a legal debt will no longer exist as there is no overpayment

5

Payment restored (PRS)

Incorrectly cancelling or suspending a payment that generates a debt. After restoring the payment, finalise the debt as FND.

6

Bulk reassessment (SYS)

Finalise the debt as FND if the debt is due to an incorrect bulk reassessment error.

This can include an error occurring during a bulk:

• Consumer Price Index (CPI) update causing debts to generate on records incorrectly
• foreign pension exchange rate generating debts instead of arrears

Note: only use FND reason SYS, where the update was due to a bulk reassessment activity, that is, activities occurring across multiple records in 'bulk'.

7

Notification handler (NOHL) date of event (NHL)

The NOHL incorrectly applies a date in the past. The system may still create a debt where an event is advised and actioned within the notification period. In these cases, refer to the rules on the notification requirements for the specific customer (statement or notification reporter). See Using the correct date of effect when raising debts.

8

Excess payment (EXP)

When an excess payment exists but there is no legislation which will allow for the raising and recovery of the debt.

9

Direct credit recall (RTN)

Where a direct credit recall (including third parties and deceased customers) returns a payment.