Example
A common error occurs when a customer with a debt incurs a third party debt of the same type. See example below for steps to take.
Note: Age Pension is an example only. This applies to all payment types. This includes third party ABSTUDY debts where the parent/guardian may also be receiving ABSTUDY.
Correcting the TXGD screen when the benefit type paid to the third party is the same as the third party debt
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Item |
Description |
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1 |
Scenario
In the 2019/20 financial year, Leo (the third party):
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was receiving Age Pension
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has an Age Pension debt, incurred from a retrospective income and asset (I&A) update
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has a third party debt, also for Age Pension, for payments incorrectly made via another customers' record
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2 |
What does the system do?
The system will reduce the customer's Payment Summary for both of these debts.
This is not correct as the customer is receiving the payment on behalf of somebody else.
It does not make up part of the customer's taxable earning.
Their taxable earning include only the payments they are eligible for. |
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3 |
What is the common error made when actioning this type of MFU?
Debt Staff or Service Officer who is actioning the MFU, incorrectly zeroes the negative amount in full. |
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4 |
What is the correct action to take?
Reduce the negative amount on the Age Pension Benefit line by the amount of the third party debt.
Leo's case:
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Age Pension payments received in the 2019/20 financial year is $2,000
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Debt incurred due to retrospective I&A updates is $1,500
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Third party debt raised for incorrect payment made via another customer record is $5,000
The TXGS/TXGD screen:
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will show a negative amount of $4,500
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should show a positive amount of $500
Debt Staff or Service Officer needs to amend TXGD to reflect a credit (positive amount) of $500.
The result should be the total amount of Age Pension Leo was entitled to receive for that year. The third party payment does not make up any of Leo's entitlement or taxable earning.
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