Administrative error waivers 107-05120010

Some examples of administrative error include:

• errors in calculating the amount of a payment
• errors in deciding which social security benefits to pay a person
• errors in processing information provided by the customer

For a waiver, the debt must have arisen solely due to administrative error. This means there must have been no other factors that contributed to the debt arising.

Example 1

System continued to pay Rent Assistance even though coded as NVE (not verified) on the Accommodation Summary screen.

This is solely due to administrative error.

Example 2

A customer advises a fortnightly income of $1,000. The Service Officer codes $100 instead of $1,000. When verified the actual amount is $1,200.

The customer declared their income incorrectly. This contributed to the debt, and to the error. Sole administration error would not apply.

Example 3

A JobSeeker (JSP) has been declaring earnings fortnightly online. A reassessment (not related to earnings or income) occurs and generates an overpayment. The customer's Working Credits did not calculate correctly resulting in an incorrect rate of payment.

The customer declared their income correctly. The debt is solely due to administration error.

Example 1

A customer is granted Disability Support Pension (DSP). Their assets are over the allowable limit. The customer declared the assets on the claim form, This was overlooked. The customer does not get the grant letter straight away due to Christmas delays.

The error is discovered 7 weeks after grant.

'Good faith' might exist for payments before the customer got the grant letter. Until then they did not know what details their rate was based on.

Once they got the grant letter, payments would usually not be in good faith. This is because the letter details the income and assets used to work out the customer's rate of payment.

Note: if the grant letter did not include those details, there may not be a legally recoverable debt.

Example 2

A JobSeeker Payment (JSP) customer advises income of $700 from a casual job on their regular Reporting Statement (SU19) form. In error, the amount is not recorded as income. The customer continues to receive the maximum rate of JSP.

Good faith would not normally exist if the customer:

• was aware their payment should have reduced, or
• had doubts about their entitlement

This would be considered to be wilfully blind. Despite suspicion or a high probability that the rate of payment is incorrect, the customer did not contact the agency to enquire.

The customer made no error. They advised their income, but they did not make reasonable enquiries about their entitlement.

Example 3

A JobSeeker (JSP) has correctly declared earnings. A system error prevents the customer's working credits from calculating correctly. The customer receives an incorrect rate resulting in an overpayment.

Good faith may exist in this instance:

• the customer may not understand how Working Credits are calculated, and
• if so, may be unaware that their payment/s was incorrect

Example

A customer is receiving Disability Support Pension (DSP). The customer notified of an increase in their assets within 14 days of the increase occurring. The notification period commences on the day after the increase in their assets occurs.

• Change occurred on 31 January
• Customer's notification period is 1 February to 14 February
• Change was reported on 3 February
• The increase was not actioned within the customer's notification period
• The debt was raised on 2 June

As the customer notified within the notification period, there is 'no debt' up to and including 14 February. The start date of the first incorrect payment is 15 February, 6 weeks from the first incorrect payment is 29 March.

For Family Assistance (Administration) Act 1999 debts.

Example 1

Debt raised in March 2016 for payments during the 2013-14 financial year.

Hardship does not need to be considered for:

• payments more than 13 weeks in the past, and
• 2016-17 is after the next financial year (2014-15)

Example 2

Debt raised in March 2016 for payments in the 2014-15 financial year.

Hardship must be considered for:

• payments more than 13 weeks in the past, but
• debt raised in the following financial year (2015-16)

Example 3

A lump sum claim for the 2015-16 financial year was paid on 3 February 2017. Debt for this period was raised on 19 May 2017 after detecting a mistake.

Hardship must be considered for:

• debt raised more than 13 weeks since the payment, but
• debt raised in the 2016-17 financial year which follows the 2015-16 financial year

Example 4

A lump sum claim for the 2015-16 financial year was paid 3 February 2018. A debt for this period was raised on 19 May 2018 after detecting a mistake.

Hardship does not need to be considered for:

• debt raised more than 13 weeks since the payment, and
• debt raised in 2017-18 which is after the next financial year 2016-17

Example 5

A lump sum claim for the 2015-16 financial year was paid 3 February 2018. A debt for this period was raised on 19 March 2018 after detecting a mistake.

Hardship must be considered:

• debt for the period 2015-16 raised in 2017-18 which is after the next financial year 2016-17, but
• debt raised within 13 weeks of the day of the payment

Maree claimed Family Tax Benefit (FTB) for a child on 1 December 2017. This is the date the child entered Maree's care. Maree was paid 100% FTB for the child from this date.

On 3 September 2020, a Service Officer identified that Maree only had 50% care from the date the child had entered care. When correcting care arrangements, the system created a debt shell from the original date of payment.

Maree had advised the shared care arrangement on the claim form. But this was overlooked.

The Service Officer determines that good faith exists.

They raise the overpayment on 10 September 2020.

There are 4 eligibility periods for this overpayment. Consider a waiver for each period separately:

• 1 December 2017 to 30 June 2018
• debt raised after the next financial year following the one that included the eligibility period
• no need to consider severe financial hardship
• 1 July 2018 to 30 June 2019
• debt raised after the next financial year
• no need to consider severe financial hardship
• 1 July 2019 to 30 June 2020
• debt raised in the next financial year
• must consider severe financial hardship
• 1 July 2020 to 9 September 2020
• debt raised in the same financial year
• must consider severe financial hardship

Waiver due to administrative error considered and applied.

Leg: Section 1237A of the Social Security Act 1991

The debt was solely due to an administrative error by the agency. [Provide details of how administrative error occurred]

The customer received the payments in good faith, as [provide details of evidence supporting this conclusion]

The debt was raised more than 6 weeks after the payment that caused the debt or the end of the notification period where the debt was due to a customer’s notification requirements.

Waiver due to administrative error considered - does not apply as administrative error did not contribute to the debt.

Leg: Section 1237A of the Social Security Act 1991

Customer has [delete what is not applicable]:

Contributed to the debt as they (provide details of why it was determined administrative error did not apply)

Customer did not receive the payments in good faith, as (provide details of why good faith provisions were not met)

The debt was raised less than 6 weeks after the first payment/end of the notification period.