Raising Assurance of Support (AoS) debts 005-03060000

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Description

1

For example, the assuree claims fraudulently, the assuree incorrectly declares earnings:

• Where a recoverable payment is made to an assuree in accordance with social security law during the AoS period:
• An AoS debt is raised by the AoS processing team under section 1227 of the Social Security Act 1991
• Liability for repayment of an AoS debt rests with the assurer(s)
• If the assuree is paid an amount to which they are not entitled, and it is determined this amount is a legally recoverable debt. The:
• debt is raised against the assuree under the relevant legislation (for example, section 1223 of the Social Security Act 1991)
• assuree, not the assurer, is liable to repay these amounts
• normal debt raising procedures are to be followed, including consideration of non-recovery (for instance, waiver)

Item

Description

1

• An AoS debt cannot be waived due to administrative error, as section1237A of the Social Security Act 1991 only applies where the payment is received by the debtor (assurer). An assurer does not receive the payment so section 1237A does not apply. For example:
• Where an assuree had received an incorrect rate of recoverable payment, due to an administrative error. Although the error was administrative, the payment was made to the assuree rather than the debtor
• The debt cannot be waived due to administrative error as the assuree is not the debtor in the AoS case
• Section 137AAE of the Social Security Act 1991 strengthens debt recovery provisions by imposing extra rules when considering the waiver of AoS debts. These rules prevents a waiver of debt:
• if the assurer(s) claim they were unaware of the obligations of providing an AoS. This is because the potential assurer must attend an interview with Services Australia where they will have these obligations explained to them. They must then confirm that they understand these AoS obligations
• amounts which are lower or equal to the bond amount irrespective of whether the AoS was provided by a single assurer or joint assurers

Item

Description

Having problems using the PS Tool?

Problems loading the Payment Summary Tool (PS Tool):

• Use Microsoft Edge to launch the PS Tool. If it does not work, re-run/run the 365 Apps Fix for Appeals and Compliance Macro Tools - Run (available from the Software Centre)
• Only have Customer Record open. Close any Process Direct and Customer First windows

For help using the PS Tool, see:

• Calculators and Tools
• Payment Details Download Sheet (PS Tool)

What dates do I use in the PS Tool when calculating debts?

The PS Tool captures the whole fortnightly payments. During the AOS period, Process Direct calculates any debt based on the delivery date. If paid outside of the review period, that payment is included in the following yearly review.

When the AoS period first commences and the assuree is in receipt of a recoverable payment, or when the AoS period expires and the assuree continues to be paid a recoverable payment, manually calculate the debt amount for that first and last fortnight.

Example

Yearly Review period 08/10/2023 to 07/10/2024:

• First entitlement period that contains the review start date is 03/10/2023 to 16/10/2023 with a gross amount of $896.56. As the Yearly Review starts on the 08/10/2023, do not count the first 5 days of the payment:
• Calculate the daily rate by dividing the payment amount by the number of days in the payment period. In this case, it will be $896.56 / 14 = $64.04
• As the first 5 days are not counted, calculate the daily rate by the remaining number of days. In this case $64.04 X 9 = $576.36

Expiry Review period 08/10/2023 to 07/10/2024:

• Last entitlement period that contains the review end date is 01/10/2024 to 14/10/2024 with a gross amount of $930.44. As the Expiry Review ends on the 07/10/2024, do not count 7 days of the payment:
• Calculate the daily rate as per above. In this case $930.44 / 14 = $66.46
• As the last 7 days are not counted, in this case $66.46 X 7 = $465.22

Coding the OPCA screen when raising a manual debt?

For payments where the entitlement period falls across 2 financial years, only include payments paid in that financial year.

For example, EPED 30/06/2024 but delivery date 01/07/2024, include that last payment in the 2024/2025 financial year.

Payment / Allowance

Before 01/01/2008

After 01/01/2008

Made recoverable from

Assistance for Older Australians (AOA)

No

No

N/A

Bereavement Allowance (BVA)

No

No

N/A

Clean Energy Advance (CEA)

No

No

N/A

Clean Energy Supplement (CES)

No

Yes

01/07/2012

Coronavirus Supplement (CVS)

N/A

No

N/A

Cost of Living Payment (CLP)**

N/A

No

N/A

Economic Support Payment (ESP)

N/A

No

N/A

Education Entry Payment (EdEP)

No

Yes

01/01/2008

Employment Entry Payment (EEP)

No

Yes

01/01/2008

Energy Supplement (ES)

No

Yes

20/09/2014

Fares Allowance (FAA)

No

Yes

01/01/2008

Income Support Bonus (ISB)

No

No

N/A

Language Literacy Numeracy Payment and Language Literacy Numeracy Supplement (LLNS)

No

Yes

01/01/2008

Mobility Allowance (MOB)

No

No

N/A

Pensioner Education Supplement (PES)

No

Yes

01/01/2008

Pension Supplement (part of standard PPS rate)

No

Yes

01/01/2008

Pharmaceutical Allowance (PhA)

Yes

Yes

01/07/2003

Remote Area Allowance (RAA)

Yes

Yes

01/07/2003

Rent Assistance (RA)

Yes

Yes

01/07/2003

Student Start-up Loan (SSL)

No

No

N/A

Telephone Allowance (TAL)

No

Yes

01/01/2008

Training or Learning Bonus (TLB)

No

No

N/A

Utilities Allowance (UA)

No

Yes

01/01/2008

Work for the Dole Supplement

Yes

Yes

01/01/2008