Temporary write off of Centrelink debts 107-05130010

For general write off information, see Writing off Centrelink debts, which includes:

• things to consider before writing off a debt
• write off definition
• interest charges

Some temporarily written off family assistance debts may still be subject to recovery by offsetting during family assistance reassessment, reconciliation and claim processing.

Some temporarily written off debts are still subject to Automatic Tax Garnishee. See the Resources page for details.

Use Process Direct to write off Child Care Subsidy (CCS) debts.

Action debts in Debt Management Information System (DMIS) and Process Direct at the same time, where a write off is:

• added
• end dated, or
• amended

Actioning a write off in Process Direct triggers a Manual Follow Up (MFU) in DMIS to prompt staff to action debt.

Customers living in locations impacted by emergency or disaster events may have a DIS pause applied to their existing debt.

A DIS pause may also be applied for customers who are not residing in a disaster affected area, but only if the customer has been granted/paid a disaster or hardship related payment in the last 14 days. These payments include (but are not limited to):

• Crisis Payment (CrP)
• Australian Government Disaster Recovery Payment (AGDRP)
• Disaster Recovery Allowance (DRA)
• High-Risk Settings Pandemic Payment (HRSPP)

Eligible customers can use self-service to pause their debt repayments on-line using Money you owe or the Express Plus App.

Customers may also choose to pause their debt repayments via the phone using Integrated Voice Response (IVR) micro-service or by calling the Debt Recovery Team.

The aim of this write off is to:

• assist people impacted by disaster and hardship
• give people time to restore their property and livelihood

Impact of a DIS pause on debt due date

Applying a DIS pause to a debt raised using the formal process may change the debt due date where an informal Account Payable debt has been issued.

See Writing off Centrelink debts.

Interest charges do not apply to debts with a status of Determined Written Off (DWO).

The system will issue a 14 day grace letter (GNOTDMNINT), if:

• the temporary write off ends, and
• there is no arrangement in place

This letter advises the debtor they have 14 days before Services Australia charges them interest on their debt. They can avoid this by:

• paying the debt in full, or
• entering into and making a payment under an agreed payment arrangement

This will also occur when the debt status changes to Determined (DET) from Finalised Written Off (FWO).

Temporary write offs or pauses may apply due to system problems or other issues.

As issues arise, staff can find details in:

• Operational Messaging within Operational Blueprint, or
• a Network News Update (NNU)

The message will also advise who is responsible for coding the write off. Do not code the write off in these situations unless the message specifies.

Status Resolution Support Services (SRSS) payments are paid by Services Australia on behalf of the Department of Home Affairs. Payments of SRSS are administered under the Public Governance, Performance and Accountability Act 2013 (PGPA).

Normal debt recovery provisions do not apply to these debts. Document the record and contact the SRSS Level 1 Helpdesk.

A person can request a pause on the recovery of their debt while an explanation or formal review is being completed.

See Recovery of debts pending a reassessment, explanation or review of decision.

Special circumstances waiver provisions should be assessed for customers aged under 16 at any time during the debt period. Consider each customer’s individual circumstances.

Business as usual procedures apply if:

• a debt does not meet all waiver provisions, or
• a customer (or their nominee) are unable to enter into a voluntary recovery arrangement

Typically, Services Australia does not pursue debt recovery for customers under 16. Exceptions to this may occur when a customer (or their nominee), volunteer a recovery arrangement. Accept a recovery arrangement unless it would cause financial hardship. See Third party withholdings for debt recovery.

In most cases, a person who is imprisoned does not have capacity to repay their debt.

Services Australia does weekly data matching with corrections services departments in every state and territory to:

• assist with identifying customers who are imprisoned, and
• automatically apply and remove a prison (PRI) temporary write off

For help on issues with the bulk action script, see the Resources page.

PRI write off excludes customers from having their tax returns garnished. Instead, a Tax Garnishee Warning Letter is sent whilst a write off is in place.

Service officers in Face to Face Incarcerated Customer Servicing Team without access to the Debt Recovery script must request the resource through ICT Security Portal (ISP). For further information, see the Resources page for the link to ISP.

Impact of a PRI write off on debt due date

Applying a PRI write off to a debt raised using the informal Account Payable process may change the debt due date.

See Writing off Centrelink Debts.

Do not apply PRI write offs to customers in an Immigration Detention Centre. A person who is in detention will not have capacity to repay their debt. See the STH write off code on the Resources page.

Social Workers or Service Officer may ask Debt Staff to pause recovery of a debt during a customer's stay at the facility. See the STH write off code on the Resources page.

Many customers contact Services Australia when they are vulnerable and in crisis.

For more information, refer to the Family and Domestic Violence Support Model (FDVSM) in Family and domestic violence.

For customers presenting at risk of suicide or self-harm, refer to Customers talking about suicide or self-harm.

Role of Debt Staff

Debt Staff may:

• deal with customers who may be affected by family and domestic violence or who talk about suicide or self-harm, or
• receive a request from a Social Worker or a Service Officer to temporarily write off debt

See the STH write off code on the Resources page.

Non-Debt Staff may request a debt be temporarily written off. Use Fast Note - select Auto text, use Debt Recovery > Debt Recovery Referrals > Debt Recovery Action Required.