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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 only.

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 + Read more ... 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) + Read more ... 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 + Read more ... Only apply a permanent write off in the following 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 + Read more ... 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 + Read more ... 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 the following 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 No, recover the debt. See Negotiation of debt repayments with customers. Procedure ends here
6	End existing payment arrangement + Read more ... 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, cease arrangement/s: go to the Arrangement List (OPAL) screen select the arrangement and key today's date to cease go to Step 7 No, go to Step 7
7	Code a temporary write off + Read more ... 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 8 No, go to Step 8
8	Completing the Add Write Off (OPWOA) screen + Read more ... On the Debt List (OPDL) screen: 'S'elect the debt to be written off, and go to the OPWOA screen. Code the following 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 for each reason code, see the Resources page 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.
9	Completing the activity + Read more ... 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, 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.
10	To restart recovery + Read more ... 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.