Payment defaulter 277-04270000

This document outlines the process where a payer has:

failed to pay the initial payment due after registration (Initial Payment Defaulter - IPD), or
defaulted on a payment after a period of compliance (First Time Defaulter - FTD)

Payment defaulter

When a customer defaults on a payment, undertaking timely action is essential to recovering the payment in the shortest possible time.

Payers may first receive an SMS to remind them that their monthly payment was not received on time. The message explains:

the date the payment was due
to pay now to avoid action being taken
to go to myGov and make a payment using their online account

When the amount remains unpaid, the account is reviewed and the payer is contacted to make the payment immediately. If this cannot be agreed, staff consider the individual’s circumstances and use the debt repayment methodology to negotiate payment.

When a payment outcome cannot be achieved, Service Australia pursue collection through an employer or third party.

The Registrar:

is required to collect registered maintenance liabilities by EW from the payer's wage or salary, if practical. Some contractors are also subject to these provisions
can accept a payer's election to make payments directly if they are satisfied the payer will pay on time

EW can occur without customer contact if:

a customer has had an election for EW not to apply accepted, and
they subsequently default on a payment

Consider the customer’s previous payment history and if special circumstances apply, before establishing EW without customer contact.

Operational Information

Payment defaulter 277-04270000

Payment defaulter

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