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7.11.1 Overview

7.11.1.1Section 205A VEA enables the Department to request payment from any person who holds money for, or on account of, a debtor. The request is effected by the issue of a payment notice to this 'person', which includes an employer, financial institution, Australian Taxation Office, etc. A copy of the notice must also be sent to the debtor concerned.

7.11.1.2Payment notice action is a simple and cost-effective method of intercepting money owned by the debtor, however, it should only be considered where the debtor is not in receipt of a DVA payment or will not negotiate a reasonable settlement of the debt.

7.11.1.3If a review of the overpayment assessment is pending, payment notice recovery action should not be considered until the outcome of the appeal is known, and a further request to repay has been issued.

7.11.1.4 — Unless Commission has made a determination that interest is not to be payable, before a payment notice is issued, the penalty interest and administrative charge should be added to the amount of the overpayment and specified as a total amount in the payment notice. A payment notice may only be signed by a person with the appropriate delegation. Please refer to the delegation powers and functions of the Repatriation Commission contained on the DiVA intranet site.    

 

7.11.1.5If the debtor finalises his/her debt or alternative repayment arrangements are made with the debtor after a payment notice has been served, an advice should be sent to the third party stating that the payment notice is revoked. A copy of this advice must be sent to the debtor, with a covering letter outlining the new repayment arrangements. In this letter, the debtor should be advised that if he/she defaults on the new arrangement, payment notice recovery action will commence without further notice.

7.11.1.6If the original payment notice needs to be amended, a new letter containing an amended notice, must be sent to the person or institution. The debtor must also be advised.

7.11.1.7Payment notices should be monitored to ensure that they are being met. Where a payment notice has not been satisfied, the person on whom the notice has been served should be contacted to determine whether they are capable of complying with the notice. If so, they should be reminded that compliance is expected.