Small debt waivers 107-05120020

The Debt Action script, Debt Recovery script or the Debt Repayment guided procedure (Smart Centres and service centres) must be used when actioning a debt.

Use a Fast Note to create a DOC.

Where a manual process is included in the following table, these are only to be followed when the script, guided procedure or Fast Note are unavailable.

Is the debt amount under $50?

• Yes, and the debt:
• is a Family Tax Benefit (FTB) debt, go to Step 3
• is not a FTB debt, go to Step 5
• No, and the debt value is:
• under $200, go to Step 4
• $200 or more, raise the debt. See Actioning an undetermined debt on the Debt Management and Information System (DMIS)

Only waive FTB debts of under $50 if the debt is a qualification debt.

See the Resources page for a list of examples.

Waive these debts on the Assessment Circumstances (ASC) screen using the code 'LTF' (less than fifty).

When actioning a new debt (NDB) activity and the debt is:

• a qualification debt, waive the debt with a reason code 'LTF' (less than fifty)
• not a qualification debt, finalise the debt as 'no debt' (FND) with a reason code of 'FAM'. This will include the amount in reconciliation

Record the details on a DOC as per the minimum DOC standards for debt waivers.

Procedure ends here.

Assess the debt against all the following criteria:

• check the Authority field on the OPMA screen to confirm the debt is raised under the relevant Act:
• Social Security Act 1991
• New Tax System (Family Assistance) (Administration) Act 1999, or
• Paid Parental Leave Act 2010
• the customer is not current on a payment
• the total balance of all outstanding debts on the record (including the undetermined debt being assessed) is under $200, and
• the customer does not have an existing payment arrangement in place

Does the debt meet all of the above criteria?

• Yes, go to Step 5
• No, the debt is not eligible for a small debt waiver, action the debt, see Actioning an undetermined debt on the Debt Management and Information System (DMIS).

A debt must be waived where all of the relevant provisions are met and it is not cost effective to pursue recovery.

Review the record to determine the actions required to apply the waiver:

• if a manual debt shell is required to be raised and waived, see Create a new debt record manually on the Debt Management and Information System (DMIS). Go to Step 6
• if the debt is to be waived:
• manually, go to Step 6
• following a formal review of decision, go to Step 7
• if the debt that requires a waiver is finalised fully recovered, go to Step 8
• if it is determined that the debt is cost effective to recover, raise the debt. See Actioning an undetermined debt on the Debt Management and Information System (DMIS)

If a DMN/NDB activity exists on the Activity List (AL) screen:

• ‘S’elect Activity
• ‘S’elect the Debt ID to be waived from the Debt List (OPDL) screen
• press [Enter]
• the Modify/Assess Debt (OPMA) screen displays:
• complete the required fields. See Step 10 in Table 2 in Actioning an undetermined debt on the Debt Management and Information System (DMIS)
• Note: for debts waived using code EUC, record ‘SDW18’ in the project field
• go to the Component Amount (OPCA) screen, use field help (?) to find appropriate codes if required:
• press [Enter] twice to confirm the component details

Go to the Add Waiver (OPWAA) screen and complete:

• Debt Amount Waived $ field, key the amount to be waived
• Interest Charge Amount Waived $ field, cost the amount of interest to be waived
• Reason Waived field key:
• LTF – for all debts $50
• LTW – for PPL debts over $50 but under $200
• EUC – for all other eligible debts under $200
• Comments field. Key a brief explanation of why the debt is being waived
• press [Enter]
• finalise activity on the Assessment Finalisation (OPAF) screen

Note: it is not possible to waive a debt and an interest charge within the same activity. Complete the update in 2 separate activities.

Record the details on a DOC as per the minimum DOC standards for debt waivers.

Procedure ends here.

Use the Debt Action script to action the debt. Where the script is unavailable:

• go to the Debt List (OPDL) screen and select the debt that is to be actioned
• go to the OPDA and key the new debt amount:
• key the Reason Changed as REV
• key the Calculated Amount
• press [Enter]
• update the Component Amount (OPCA) screen:
• press [Enter] twice to confirm the component details
• for debts that will be waived using code EUC, update the Modify/Assess Debt (OPMA) screen:
• record ‘SDW18’ in the project code field

Go to the Add Waiver (OPWAA) screen and complete:

• Debt Amount Waived $ field, key the amount to be waived
• Interest Charge Amount Waived $ field, cost the amount of interest to be waived
• Reason Waived field, key:
• LTF - for all debts under $50
• LTW - for PPL debts over $50 but under $200
• EUC - for all other eligible debts under $200
• Comments field. Key a brief explanation of why the debt is being waived
• press [Enter]
• finalise activity on the Assessment Finalisation (OPAF) screen

Note: it is not possible to waive a debt and an interest charge within the same activity. Complete the update in 2 separate activities.

Record the details on a DOC as per the minimum DOC standards for debt waivers.

Procedure ends here.

For DMIS to allow a waiver, the debt status must show as DET (determined). This is done by adjusting the repayment history.

Over-recovered debts

Do not tell the customer if a refund will be paid. Payment Assurance Operations will decide this. They may pay a refund or transfer the amount to other outstanding debts.

Non Debt Staff:

• record the details on a DOC using Fast Note located in Customer First. The Fast Note will automatically refer to Payment Assurance Operations, requesting the repayment history be adjusted to allow the waiver to be applied:
• use Fast Note - select Auto Text, use Debt Recovery > Debt Recovery referrals > OPRH Adj Req for Debt Waiver
• select Confirm
• record relevant details as required

Debt Staff:

• select the debt to waive from the Debt List (OPDL) screen
• go to the Repayment History (OPRH) screen. Adjust the last payment by $0.01 cent. Note: reverse this before finalising the debt

Once a waiver is complete, DMIS generates an over-recovered activity for the repaid amount. These activities automatically map to Payment Assurance Operations to follow up whether a refund is due to the customer.

Procedure ends here.