Effect of waiving a debt on the recovery fee 107-05120060

Is there a decision to waive all or part of the debt?

• Yes, go to Step 2
• No:
• decide to waive part or all of the debt before assessing the effect on the 10% recovery fee. See Waiving Centrelink debts
• procedure ends here

Is all of the debt to be waived?

• Yes, go to Step 3
• No, go to Step 4

For new debts - If the recovery fee has been applied to the debt, the Debt Management and Information System (DMIS) will:

• automatically remove the recovery fee, and
• reduce the amount raised

If the debt has already been raised when coding waiver, update the Recovery Fee (OPRF) screen using the code 'RWA' (Debt Waived - Recovery Fee Removed).

Procedure ends here.

The recovery fee does not apply to any waived amount of the debt. It can still be applied to the part of the debt that is to be raised/recovered.

Has the debt already been raised?

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

If the fee was applied before waiving part of the debt, manually remove/reduce the recovery fee.

The fee is to be reassessed based on the new debt amount.

Record the new amount of the fee on the Recovery Fee (OPRF) screen. Use the code 'RDA' (Recalculation - Debt Amount Changed)

For further information on applying the recovery fee, refer to Recovery fee applied to debts resulting from incorrect declaration of income.

Base the amount of the recovery fee on the reduced debt amount.

For more information, see Recovery fee applied to debts resulting from incorrect declaration of income.