Permanent write off of Centrelink debts 107-05130020

Consider waiving a debt before taking write off action.

Consider permanent write off if recovery of debt is not possible or must cease.

Use the Debt Recovery script when actioning a debt.

To restart recovery of a written off debt, go to Table 2.

Where a court is satisfied there is no debt owed, go to Step 6.

Otherwise, go to Step 2.

For example, the Authorised Review Officer (ARO) deciding to waive a debt.

Is Services Australia foregoing the legal right to recover the debt?

• Yes, see Waiving Centrelink debts
• No, go to Step 3

Before permanently writing off a debt, verify actions have been performed:

• for payments made after death, request a refund from the bank
• discuss with the executor of the estate to determine if there is insufficient or no estate. See Recovering debts from a deceased customer's estate

Is the customer deceased and there is no (or insufficient) estate to recover the debt?

• Yes, go to Step 7
• No, go to Step 4

This is applicable when a debt:

• was raised for a period before the date of bankruptcy, and
• the customer is bankrupt (or discharged from bankruptcy), and:
  • no dividends are expected, and
  • the debt was not due to fraud

See What to do when a customer is bankrupt.

Is the customer bankrupt?

• Yes, go to Step 7
• No, go to Step 5

See Six Year Limitation Write off.

Has the agency taken any action to recover the debt within the past 6 years?

• Yes, recover the debt. See Negotiation of debt repayments with customers
• No, for all Social Security, A New Tax System (Family Assistance), Student Assistance or Paid Parental Leave Act debts, where the 6 years ended:
  • before 1 January 2017, go to Step 7
  • after 1 January 2017, recover the debt

If unsure whether this has occurred after checking procedures, contact the relevant Level 2 Policy Helpdesk for further advice.

Is the court satisfied there is no debt owed?

• Yes, go to Step 7
• No, pursue recovery of the debt. See Negotiation of debt repayments with customers

Determine the permanent write off reason.

Coding a permanent write off

Is there a DMV/RCV No arrangement activity on the Activity List (AL) screen?

• Yes, 'S'elect the activity and go to the Add Write Off (OPWOA) screen
• No, go directly to the OPWOA screen

If there is more than one debt on the Debt List (OPDL) screen, select the appropriate debt(s) and repeat process.

Some Family Tax Benefit reconciliation debts may be subject to offsetting of family assistance lump sum payment and tax refunds after write off.

See the Resources page for more coding details.

Complete the OPWOA screen by coding the following fields:

• Reason field. Use field help (?) for appropriate reason code
• Comments field

Coding the OPAF screen

Finalise the activity on the Assessment Finalisation (OPAF) screen:

• in the Finished? field, key Y, and
• press [Enter]

Repeat Steps 7 and 8 if a customer has more than 1 debt written off for:

• No Further Estate/No Fraud (BRD), or
• Irrecoverable at Law (IAL)

The write off reason codes are Debt Id specific.

Note: if the Debt Recovery script cannot be used to apply the write off, manually DOC the decision to write off the debt.

Procedure ends here.