House of Assembly Fifty-Third Parliament, First Session (53-1) 53 1 Parliament of South Australia House of Assembly published Estimates Replies Housing SA Customer Debt Housing SA Customer Debt In reply to Ms SANDERSON House of Assembly Adelaide Housing SA Customer Debt In reply to Ms SANDERSON (Adelaide) (23 July 2014). (Estimates Committee A) The Hon. Z.L. BETTISON House of Assembly Ramsay Minister for Communities and Social Inclusion Minister for Social Housing Minister for Multicultural Affairs Minister for Ageing Minister for Youth Minister for Volunteers Housing SA Customer Debt The Hon. Z.L. BETTISON (Ramsay—Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Multicultural Affairs, Minister for Ageing, Minister for Youth, Minister for Volunteers): I have been advised: As at 30 June 2014, the total of Housing SA's customer debt was $22,622,193. As per Housing SA's debt management policies, Housing SA consolidates all charges (including rent, water charges, private rental assistance and maintenance) into one customer account. Any debt repayments made by a customer are offset against the total amount owing, with payments allocated to the oldest debt first; therefore, the relative amounts owing in each debt category are influenced by the date on which the individual charges within each debt category were incurred. After application of these business rules, Housing SA's debt is broken down as follows: Maintenance $9,309,594 Water charges $5,166,880 Overpaid benefit $1,593,994 Rent $1,509,529 Private rental assistance $4,608,753 Other $433,443 Housing SA writes off debt in a number of circumstances. During 2013-14, Housing SA wrote off bad debts totalling $6,289,780. This includes reinstatable debts totalling $4,890,614 and debts totalling $1,399,166 that are not reinstatable. Debts will be considered non-reinstatable where (for example): the customer is declared bankrupt; the customer has died; the debt relates to substantiated domestic violence; a legal judgement is handed down that directs creditors to write off a debt; a small balance is outstanding due to the customer paying an invoice in cash at a post office, resulting in a rounding down of the amount owed; at least six years has elapsed since the date the debt was due or the date that the customer last acknowledged the debt (whichever is the most recent). Housing SA will write off a debt, in accordance with the statute of limitations, except where repayment is subject to a court order; a customer continues to make repayments according to an arrangement to pay, or a customer is a current tenant; the customer's rent was incorrectly set at a lower rate due to a Housing SA error; attempts to collect a debt have been unsuccessful and it is considered uneconomical to continue recovery efforts; or the customer disputes a charge and the charge cannot be substantiated. Reinstatable debts include (for example): debts that remain outstanding after a debt settlement agreement has been accepted (debts are reinstated if the customer fails to fulfil the agreement); debts owed by customers who are serving a prison sentence greater than three months (debts are reinstated upon the customer's release); debts that have been recalled from a private debt collector due to the collector determining that it is not economical to pursue legal action to recover them (debts are reinstated if a customer re-establishes contact with Housing SA); and debts of $10 or more that have been recalled from a private debt collector due to the collector being unable to locate the customer (debts are reinstated if a customer re-establishes contact with Housing SA). During 2013-14, Housing SA reinstated debts totalling $2,202,121.