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Temporary write off of Centrelink debts 107-05130010

For Debt Staff and authorised Service Officers in Face to Face Incarcerated Customer Servicing Team with access to Debt Recovery script.

This document outlines when a temporary write off can occur.

Deferring the recovery of a debt by means of a temporary write off

Step	Action
1	Situations where temporary write off must be considered Use the Debt Recovery script to action a temporary write off. Consider these options in the following order when stopping debt recovery: waiving the debt permanent write off temporary write off Action required: temporary write off, go to Step 2 pause of recovery for review of debt decisions, see Recovery of debts pending a reassessment, explanation or review of decision restart recovery of a debt, go to Step 10
2	Foregoing legal right to recover the debt (waiving) If Services Australia makes a decision to waive a debt or part of a debt, apply the waiver before applying a write off. Are there factors to consider waiver for a debt or interest charge? Yes, see Waiving Centrelink debts. Procedure ends here No, go to Step 3
3	Permanently ceasing the recovery of a debt Only apply a permanent write off in these circumstances. If: there is insufficient proof of the debt for it to be recovered through legal proceedings the debtor is discharged from bankruptcy, and the debt: was incurred before the customer became bankrupt, and was not incurred by means of fraud the debtor has died leaving no estate or insufficient funds in the estate to repay the debt, or recovery action cannot take place because the debt meets the criteria for 6 year limitation write off Is the agency ceasing recovery action permanently because there is no longer a legal right to recover the debt? Yes, see Permanent write off of Centrelink debts. Procedure ends here No, go to Step 4
4	Verify if a customer has capacity to repay the debt Verify if the customer has any capacity to finalise their debt before temporarily writing off a debt, when a customer is: under 16 years of age (a minor) in prison overseas whereabouts unknown, or claiming short-term hardship Does the customer have capacity to repay the debt? Yes, see Negotiation of debt repayments with customers No, go to Step 5
5	Determining the temporary write off reason Do not use temporary write off to 'park' a debt. Where a customer has entered and is maintaining their payment arrangement, do not apply a write off for these reasons: Departure Overseas (DOS) Not Cost Effective (NCE) In Prison (PRI) Non-financial Short-Term Hardship (STH) Exclusion from Tax Garnishees (TAX), or Whereabouts Unknown (WUN) Only apply write off if the: payment arrangement becomes broken, or customer advises they cannot continue the arrangement Recovery will restart upon receipt of a payment. See the Resources page for details. Does the debt meet the criteria for a temporary write off reason? Yes, go to Step 6 Note: if applying a Short Term Hardship (STH) temporary write-off and the customer is available, confirm the terms of the arrangement. There are automated pre-recorded message available for staff using Services Australia Workspace to play to customers: Select the cassette icon > The Automated message screen will appear and list all pre-recorded messages Select the required message: CLK_DBT_STH Select Play to start the message. Both staff and the customer will hear the message Select Stop when the message is completed Select X in the top right corner to close the window DOC the record to state this message has been played to the customer If the automated message is unavailable, Staff must: see the Resources page for a copy of the message read the message to the customer, and record details on a DOC in the customer's record No, recover the debt. See Negotiation of debt repayments with customers. Procedure ends here
6	Existing payment arrangement If the customer has a BPAY® arrangement in place, explain they will need to cancel this arrangement. If writing off all debts, end the existing payment arrangement. Various arrangement status: Pending (PND) Future (FUT) Current (CUR), or Broken (BKN) Does an arrangement need to cease? Yes, go to Step 7 No, go to Step 9
7	Contact the customer Payment arrangements can only be ended: at the customer’s request, or after giving the customer 28 days’ notice Staff must make reasonable effort to contact the customer to discuss ending payment arrangement(s). Is the customer on the call or have they been successfully contacted? Yes, go to Step 8 No: issue a Q999 Ending Arrangement 28 Days’ Notice letter to the customer’s address to provide 28 days’ notice before the payment arrangement can be ended use Fast Note - select Auto text, use Debt Recovery > Debt Recovery Referrals > Ending Payment Arrangement 28 Days’ under Action Required, add text End payment arrangement after 28 days’ notice or at customer’s request place the Fast Note on hold for 28 days plus additional delivery days go to Step 9
8	Ending the existing payment arrangement Does the customer want their existing payment arrangement ended or has the customer received 28 days’ notice of the payment arrangement being ended? Yes, cease arrangement(s): go to the Arrangement List (OPAL) screen select the arrangement and key today’s date to cease go to Step 9 No, go to Step 9
9	Code a temporary write off Use the Debt Recovery script to action a temporary write off. If the Debt Recovery script is not available, manually code a temporary write off. Is there a DMN/RCV 'No arrangement' activity on the Activity List (AL) screen? Yes: 'S'elect the activity go to the Debt List (OPDL) screen go to Step 10 No, go to Step 10
10	Completing the Add Write Off (OPWOA) screen On the Debt List (OPDL) screen: 'S'elect the debt to be written off, and go to the OPWOA screen. In these fields: Reason, key the appropriate temporary write off reason code End Date, as determined by customer circumstances or the default end date. For maximum end dates that apply to each reason code, see the Resources page. Note: when applying the temporary write off end date, include the day the debt is being paused. For example, if a debt is to be paused for 6 months, key the end date 6 months from and including, the date of action Comments, key brief explanation press [Enter] Repeat the process to write off more than one debt if the write off code is Debt ID specific.
11	Completing the activity Finalise the activity on the Assessment Finalisation (OPAF) screen: in the Finished? field, key Y press [Enter] The Debt Status code on the: OPDL screen will change to D - Pend Rcvr Actn for all write off reasons Write Off (OPWO) screen will change to Determined - Pending Recovery Action If a formal account payable letter has been issued, tell the customer that the debt recovery has been paused and will restart after the write off end date. For customers who are: current: standard withholding rate applies they can contact the agency to negotiate the rate non-current, they can contact and organise a payment option If an informal account payable letter has only ever been issued, tell the customer when the write off ends they will receive another account payable letter and their debt will be due in 28 days. Explain that when the debt becomes due, recovery will start. For customers who are: current: standard withholding rate applies they can contact the agency to negotiate the rate non-current, they can contact and organise a payment option Record all details on a DOC. For Short Term Hardship (STH) write offs: if the customer has family assistance debts, advise the customer that STH does not stop all recovery for these debts, see the Resources page issue the following letter to the customer if a write off is applied manually: Q246 for current customers, or Q313 for non-current customers A DMNMFU82 is created if: the customer has other debts in the Debt Management Information System (DMIS), and the write off is added, end dated or amended in Process Direct, for the reasons below: DDE - Deceased - awaiting estate DEC - Deceased - insufficient estate DIS - Disaster - Temporary Write off DOS - Overseas NCE - Not cost effective PRI - Prison STH - Short term hardship WUN - Whereabouts unknown Select the MFU and complete the write off action. Procedure ends here.
12	To restart recovery After the end date of the temporary write off, recovery will restart. Recovery can also be restarted manually. This may happen for: Departure Overseas (DOS) write offs, when the customer returns from overseas Outcome of Review Appeal write offs (ORA), when the explanation or review is complete. See Table 3 and Table 4 in Recovery of debts pending a reassessment, explanation or review of decision in Prison (PRI) write offs, when the customer is released other reasons as listed on the Resources page If restarting recovery, contact the customer to negotiate a payment arrangement. Before restarting recovery, make sure the debt does not meet the waiver or write off criteria. Customers with a DIS pause due to an emergency event (have a disaster or payment type comment on the Write Off (OPWO) screen) can choose to set a payment arrangement. If the customer decides to make a payment arrangement: note the DIS pause end date and comment remove the DIS pause and set up the payment arrangement reapply the DIS pause end date and description as previously noted To restart recovery: 'S'elect the debt to be restarted from the Debt List (OPDL) screen go to the OPWO screen in the Restart Recovery field, key Y press [Enter] Record all details on a DOC.