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Debt Management Policy

This policy describes the requirements for entities planning digital investments involving the management of debt.

Applicability

Digital investment proposals are assessed against this policy by the DTA through the Digital and ICT Investment Oversight Framework (IOF).

Commonwealth entities are encouraged to apply this policy to all digital investments.

Policy requirements

  • Comply with legislation

    An entity must comply with legislation relevant to its circumstances. 

  • Align operational and technological needs

    Proactive determination of business requirements and an understanding of the technological landscape enables the deployment of debt management solutions and measures that align to operational and technological needs.

  • Undertake responsible debt collection

    Appropriate system selection and deployment will ensure any debt recovery action is ethical, proportionate, consistent, and transparent.

  • Proactively mitigate financial risks

    Incidence of debt can be minimised through utilisation of strong forecasting and financial oversight tools, where possible stopping debts arising and avoiding the need for debt management entirely. Establishment of a continuous feedback loop where insights from debt recovery activities are systematically fed back into their financial management processes to further refine and strengthen preventive measures.  

  • Monitor for debtor and entity human risks

    Monitoring of debt management systems will assist to ensure that any patterns of bias or unintended consequences are quickly identified and addressed.

  • Adhere to reuse principles

    Entities must give priority to the adoption of reuseable digital and ICT solutions, patterns, or knowledge, and, where necessary, design new solutions with a focus on future reuse.

Standards

The following standards show what to do to satisfy this policy.
The Debt Management Standard ensures that debt management practices are consistent, legally compliant, and aligned with operational and technological needs while promoting responsible financial management and risk mitigation. There are several technologies available and widely used across…
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