Recovery of Assurance of Support (AoS) debts 005-03060010

The Assurer/s is responsible for repayment of the debt. Outstanding debts should be listed on the OPDL screen as either:

• ASB - AoS bank guarantee recovery, or
• ASN - AoS (New Auto)
• ASO - AoS (Manual)

ASB debts are recovered from the AoS bond. Contact AoS Local Peer Support (LPS) to follow up bond recovery with the Commonwealth Bank of Australia (CBA).

For ASN and ASO debts recover the debt using all recovery methods available. See:

• Managing recovery and non recovery of Centrelink debts, and
• Negotiation of debt repayments with customers

Record all details on a DOC. Include if the assurer has repaid or is currently repaying the debt. Procedure ends here.

There may be cases that have multiple AoS debts being recovered at the same time. Confirm that the assurer is aware that they have multiple debts outstanding.

Does the assurer advise that they can no longer pay due to bankruptcy being declared?

• Yes, go to Step 7
• No, go to Step 2

• Yes, repayments can only be made by:
• withholdings
• direct debit, or
• cash payments
• Go to Step 3
• No, normal debt recovery applies. Record all details on a DOC. Procedure ends here

Which payment method would the customer prefer?

• withholdings, go to Step 4
• voluntary deduction (direct debit) from a financial institution (FI) account, go to Step 5
• cash instalments by payment card, go to Step 6

• Record the withholdings on the assurer's record
• In the Create new arrangement type: field, type 'WHS' and press [Enter]. Note: if the agreed rate is the standard amount, type 'AWH' and press [Enter] to trigger automatic withholdings
• On the Withholding Instruction (OPWH) screen, complete the following fields:
• Withholding Type:
• Non Standard Amount $:
• Non Standard %: (complete only if a customer indicates a percentage rate to be withheld)
• Comments: Ensure this states the arrangement is voluntary. It should not be changed until the AoS period has expired, or the assurer requests a change

If adding a new withholding instruction, add the text 'AOSWHSOK' at the beginning of the first comment line on the OPWHA screen. This text indicates to the Debt Management and Information System (DMIS) that withholding payments can be applied to the 'Determined - AoS' debt for the customer.

• A letter will issue advising the amount to be deducted from ongoing payments
• Go to the Assessment Finalisation (OPAF) screen
• Type 'Y' in the Finished?: field. Press [Enter]
• Note: if the activity is to be Quality on line (QOL) checked, type 'Q' in the Finished?: field

Record all details of the voluntary agreement on a DOC.

• Record the agreed arrangement on the assurer's file. For assistance, see Voluntary deduction (direct debit) arrangements to recover debts
• Make sure the Comments: field on the Direct Debit (OPVD) screen states:
• the arrangement is voluntary and
• should not be changed until the AoS period has expired, or
• the assurer requests a change

Record all details of the voluntary agreement on a DOC.

For a regular/irregular cash arrangement, issue a payment card for the assurer to make voluntary payments through Post Billpay/BPAY®:

• Go to the Activity List (AL) screen. Key 'AL' in the Nxt: field and press [Enter]
• Go to the Extra Details (OPXD) screen. Key 'OPXD' in the Nxt: field and press [Enter]
• Key 'Y' in the Issue Card Indicator: field and press [Enter]

Record all details of the voluntary agreement on a DOC.

An assurer advises they can no longer pay due to being declared bankrupt or entering into a debt agreement.

Note: where an assurer has declared bankruptcy or has a debt agreement in a multiple liability case, recovery must be pursued from each of the remaining assurers.

Has the bankruptcy or debt agreement been applied to the assurer’s record?

• Yes, and the debt:
• is covered by the bankruptcy or debt agreement - No action can be taken on debts that are covered by the Bankruptcy Act 1966 (the References page has a link) during the bankruptcy or debt agreement period
• is not covered by the bankruptcy or debt agreement - Debt recovery may continue, go to Step 1
• is not listed in relation the bankruptcy or debt agreement, go to Step 8
• No, go to Step 8

The sole assurer has declared bankruptcy or has a debt agreement

Refer the Work Item to a Bankruptcy Officer in the Debt Administration and Bankruptcy Team to assess if the:

• AoS debt was incurred prior to bankruptcy or debt agreement (and was not incurred by fraud)
• debt is considered irrecoverable and should be permanently written off under section 1236(1B)(c)

Use Fast Note - select Auto Text, use Debt Recovery > Debt Recovery Referrals > Bankruptcy Team Referral DOC.

Record all details of the discussion and decision in the Fast Note.