A contractor may incur a debt with the ASTP. Learn about the several options available to repay outstanding debts.
Outstanding debts incurred by a contractor can be due to a change in the goods and services tax (GST) status of the business, incorrect pay claims, or an error in payment made by the ASTP.
Under clause 27 of the Contract Agreement (PDF 1249.24KB), the department is able to deduct the total debt from payments owed to the contractor.
Debt repayment terms are at the discretion of the ASTP. In most instances, the ASTP will seek immediate repayment of the full amount once the debt has been identified.
The ASTP will only agree to a deferred debt repayment in exceptional circumstances.
Immediate repayment of outstanding debt
The department has several options for the immediate repayment of a debt:
- payment by credit card
- electronic funds transfer
- direct debit from a nominated bank account.
To make payments:
- contact the ASTP on 1300 338 278 and advise them of your situation
- request a negotiation advice form
- if paying by direct debit also request a direct debit authority form
- email the completed form(s) to firstname.lastname@example.org
Once received, the ASTP will forward the form(s) to the department's debt collection team to arrange payment. The ASTP will notify the contractor and provide the debt collection team contact details.
Direct debits occur on the 15th of every month. Please note the transfer of funds may not occur on this date as it will depend on your bank.
Please check with your bank for further information. Funds must be available in your account, otherwise additional fees may be incurred.
Outstanding payments should be resolved immediately as the outstanding debt may impact on the contractor performance assessment.
Deferred repayment will only be considered in exceptional circumstances when there is significant financial hardship.
In these circumstances, the contractor must provide documentation to support the case for financial hardship.
Written correspondence is not sufficient. The case must be supported by bank statements, financial statements or a statement provided by a qualified accountant.
Please note the ASTP is limited in the repayment terms that can be offered in such cases.
Where the ASTP has been unable to contact the contractor, the debt owing will be referred to the department's debt collection team.
The debt collection team will deal directly with the contractor owing the debt.
Things to remember
When a debt has been identified or the contractor has received an overpayment:
- immediately contact the ASTP to arrange repayment of the debt
- in most instances the debt should be repaid immediately to the ASTP by emailing the negotiation advice form
- depending on the circumstances, an outstanding debt may impact on the performance assessment of a contractor
- where the ASTP has been unable to make contact regarding an outstanding debt, this will be referred to the department's debt collection team for further action
- failure to repay the debt may result in the termination of your contracted services.