Small debt waivers 107-05120020

When applying a small debt waiver for:

• undetermined debts, go to Step 2
• determined debts, go to Step 6

Is the total calculated debt amount, less than the small debt waiver threshold?

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

Only waive FTB debts that are an amount less than the small debt waiver threshold if the debt is a qualification debt. See the Resources page for examples.

Staff must waive negative adjustment amounts that are less than the small debt waiver threshold debts on the Assessment Consequences (ASC) screen.

In the Debt Action field, from the dropdown menu:

• select WVD (waived). Note: only use WVD for FTB qualification related debts
• an Act Reference is required for a manual small debt waiver. See the References page in Explaining and actioning negative adjustments on a customer’s record
• no undetermined debt activities will generate and the small debt waiver will automatically finalise when the activity completes

When the debt is 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.

A debt must be waived where the small debt waiver provisions are met.

Note: do not use Debt Scripts to waive debts less than the small debt waiver threshold. Staff must manually waive debts less than the small debt waiver threshold.

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 5
• following a formal review of decision, go to Step 6
• if the debt that requires a waiver is finalised fully recovered, go to Step 7

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 > [Enter]
• when the OPMA screen displays, complete the required fields. See Table 2 > Step 10 in Actioning an undetermined debt on the Debt Management and Information System (DMIS)
• go to the Component Amount (OPCA) screen, use field help (?) to find appropriate codes if required
• press [Enter] twice to confirm the component details

The system will automatically apply a small debt waiver when the debt activity is finalised on the Assessment Finalisation (OPAF) screen.

If the system does not automatically waive the debt, go to the Add Waiver (OPWAA) screen and complete these fields:

• Debt Amount Waived $, key the amount to be waived
• Interest Charge Amount Waived $, key Nil
• Reason Waived, key SDW (small debt waiver)

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.

Note: determined debts less than the small debt waiver threshold that were raised before 20 March 2026, are not eligible for a small debt waiver, unless recalculated from 20 March 2026 to a new debt amount that is less than the small debt waiver threshold.

To waive a determined debt after review:

• go to the Debt List (OPDL) screen:
• select the debt that is to be actioned > [Enter]
• go to the OPDA and in these fields:
• Reason Changed, key REV
• Calculated Amount, key the new debt amount > [Enter]
• update the Component Amount (OPCA) screen:
• press [Enter] twice to confirm the component details

The small debt waiver will automatically apply when the debt activity is finalised on the Assessment Finalisation (OPAF) screen.

If the system does not automatically waive the debt, go to the Add Waiver (OPWAA) screen and complete these fields:

• Debt Amount Waived $, key the amount of interest to be paid
• Interest Charge Amount Waived $, key Nil
• Reason Waived, key SDW (small debt waiver)

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.

Send a Q053 letter. See Table 2 > Step 7 in Changing account details on debts raised in the Debt Management and Information System (DMIS).

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 to pay a refund or transfer the amount to other outstanding debts.

Non-Debt Staff:

• record the details on a DOC using Fast Note. 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. If further assistance is required, see Adjusting and adding debt repayments
• go to Step 6 to complete the waiver action

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 if a refund is due to the customer.

Note: check the refund includes all repayments made towards the debt. See Investigating a refund of debt repayments.

Procedure ends here.