Non-agency payment (NAP) 277-04230000

NAP applications can be lodged:

• verbally
• electronically (for example using a Child Support online account, or
• in writing. For example, via non-agency payment details form or letter

NAP applications can be provided:

• by the payee, payer or both
• by an overseas Central Authority
• within a court order or agreement

Note: NAP information provided by a customer's representative can only be used in limited ways. See the References page for a link to the Child Support Guide 6.3.6: Customer authorised representatives.

If a NAP application or advice is received:

• for an overpayment of child support see Table 12
• for a New Zealand Inland Revenue Child Support (NZIRCS) case and the registration type in the Case window is INTERL ASSMNT or INTERL CO/AGR. See Step 6 in Table 3
• verbally, go to Step 2
• via a NAP Unactioned or CS ONLINE UNACTIONED NAP intray, see Table 2
• using Child Support self service

Ask the customer for the NAP details to establish the type of payment. For more information see non-prescribed NAP and prescribed NAP.

Check for any:

• outstanding issues which may affect the NAP
• pending applications for collection
  Note: process these before making a decision on the NAP. See Application for child support to be collected
• other ‘recorded’ NAP which could be duplicates of the reported NAP, check:
• the period the NAP applies to (if available)
• the date the NAP was paid
• the type of NAP
• the amount of the NAP
• the reason for the NAP

Does the NAP appear to be a duplicate?

• Yes, advise the customer reporting the NAP it seems Child Support have already recorded the information:
• clarify the reported details
• if uncertain the NAP is a duplicate, record the information in the NAP Detail window and see Table 7
• No, go to Step 3

If the NAP is not a duplicate:

• create a NAP record, and
• document the relevant details using the NAP macro

Where the NAP application includes multiple payments, record the items separately with the date each payment was made.

The date of payment is used by Centrelink to assess the payee's maintenance income for the financial year the payments were made.

See Step 3 in Table 3

If a NAP Unactioned intray is received the initial processing steps have been completed but a decision has not been made. Check the progress of the application. Review the notepad on the NAP Detail window.

Note: due to system functionality these intrays do not relate to overpayment NAP.

Before intray due date

Contact the applicant only if additional information is required.

If the contact is:

• Successful, see Step 3 in Table 3
• Not successful for both customers, address the payment as a disputed NAP. See Table 6

On or after the intray due date

Check if there is enough information to make a decision. If additional evidence has been requested, establish if the timeframe provided has expired.

Do not finalise the intray if the timeframe provided for evidence has not yet expired, regardless of the due date of the intray.

If the timeframe cannot be determined, contact the customer. Document the new timeframe in the NAP Detail window.

If the NAP:

• is in dispute or it is clear the customer has been given a reasonable opportunity to provide evidence and they have not responded, see Table 6
• will be disallowed, see Table 7
• can be allowed or partially allowed, see Table 8

Is the NAP notified by the payer?

• Yes, go to Step 3
• No, when a payee advises of a NAP through Child Support Online Services it is automatically accepted provided the payment is:
• in a collect period
• not in a collect period, but there is child support currently owing on the payer’s account. This does not apply to prescribed NAP

No action is required if the NAP has been automatically accepted.

If the payment reported does not meet the criteria, the NAP will automatically disallow, and a letter will issue to the customer.

Customers can go online to record the percentage of liability to be periodically allocated from a NAP credit when they report non-prescribed third party NAP.

When a payer advises of a NAP through Child Support Online Services:

• Child Support Online tells them they can provide supporting documents via Upload Documents
• a CS Online Unactioned PYR NAP intray generates
• the NAP details are recorded in the Customer Communication window

Review the communication notepad.

Record the information on the NAP Detail window to progress the application. See Non Agency Payment (NAP) Cuba Process Help.

• determine the case collection status, go to Step 2
• gather basic information about the NAP, go to Step 3
• consider if proof of claim is required, go to Step 4
• contact the payee (if the payer lodged the NAP application), go to Step 5
• determine if the NAP is for an international case:
• for NZIRCS customers, go to Step 6 or
• for other international customers, go to Step 7
• consider the relevance of any COA, agreement, or court order, go to Step 8

Check if the case was collectible at the time the NAP was paid. NAPs are only applicable when Child Support is responsible for collecting the child support liability.

If the NAP is paid in a non-collect period:

• it may be accepted if the customers' intention was to apply it to outstanding child support payments that accrued during a collect period
• it cannot be accepted if there are no outstanding child support payments owing at the time of payment. This is the case even if the customers’ intention was that the NAP should apply to a future collect period

A NAP reported after the case has ended may be accepted if it was paid in a collect period.

During the opt-in arrears period payments are considered by calculating the opt-in arrears not by crediting a NAP.

If payments during an opt-in arrears period exceed the liability raised, they will not be credited against future liabilities. This includes where the customers had an arrangement in the private collect period that was:

• similar to a prescribed NAP, and
• the excess credit had not yet been ‘allocated’

For information about how to apply a NAP to opt in arrears, see Applications for Collection.

If the NAP was paid in a non-collect period or there are no outstanding child support payments when it is reported, see Table 7.

When taking a NAP application gather the following basic information:

• The amount, or agreed value
• Who received the payment (for example payee, a third party, school, doctor, hospital)
• How the payment was made (for example cash, cheque, bank deposit, payment in kind)
• When the payment was made, or date of the transaction
• The reason for the payment (for example school fees, medical expenses)
• The period the payment or non-cash transaction intended to cover (that is, determine if it was intended to cover a specific payment period, repay arrears or to be offset against future liabilities)
• The agreed percentage (if any) of the ongoing liability that is to be credited from the NAP during each payment period
  Note: this applies to non-prescribed third party or non-cash payments only
• Mutual intent (if any) at the time the payment was made (that is, determine if the payment was intended by both parties to be credited as child support)

Note: non-prescribed third party or non-cash NAP credits will be allocated at 100% of the ongoing liability until the credit has been fully used unless the customers agree for a lesser percentage to be periodically allocated.

If the payer reported the NAP, confirm the payment with the payee if the NAP was reported by the payer.

If the payee reported the NAP, no contact with the payer is required. Document the NAP details using the NAP macro and accept the payment.

Understanding the different types of NAPs will assist in deciding what information and evidence is required to make a decision. See non-prescribed NAP and prescribed NAP.

NAP Unactioned intrays

If some or all of the basic information has not already been provided:

• Contact the customer submitting the NAP, and
• Confirm the required information

Confirmation can also be sought from the other customer.

Record the NAP details if the NAP has not already been recorded. See Non-agency payment (NAP) Cuba Process Help.

For NAP lodged via phone, additional evidence may be not required.

If the payer lodged the NAP and there is a history of disputed NAP, ask the payer to provide supporting information.

For medical payments determine the net cost to the payer. Ask the payer to provide evidence of the medical expense(s) and any rebates that they received.

If the payee confirms the same details for the prescribed NAP as the payer (including any rebate amounts), more evidence from the payer is not required.

If there is any discrepancy, ask the payer to provide written documentation to support their claim.

If the payer lodged the NAP, provide more information to the payee.

See Contact with Child Support customers.

Contact the payee to discuss the possible effects of the NAP on their Family Tax Benefit (FTB).

Suggest they contact Centrelink to discuss this and cold transfer the customer if appropriate.

A reduction in their Family Tax Benefit entitlement is not sufficient reason to dispute whether the NAP was in lieu of child support.

Where family and domestic violence is identified as an issue, advise the customer that Child Support may need to contact the other parent to discuss the case details. For more information and referral services, see Family and domestic violence.

For a non-prescribed NAP, confirm the details of the payment and if the payee agreed at the time the payment was made if it was to be treated as child support.

If the payment is recorded as a prescribed NAP, confirm the details of the payment. See prescribed NAP for more information about making prescribed NAP decisions.

The payee may dispute the payment was made and perhaps the payer cannot or will not provide the necessary evidence (for example receipts of payments made to third parties). See Table 6.

NAP from NZIRCS customers

Child Support does not have jurisdiction to credit a NAP in New Zealand Inland Revenue Child Support (NZIRCS) cases.

Contact the customer and advise:

• New Zealand legislation does not allow payments made directly between the parents to be credited in the same way as Australian child support legislation
• they can apply for the NAP to be accepted, however Child Support must refuse to credit the NAP
• they should contact New Zealand Inland Revenue on 1800 504 042 (free call from Australia unless calling from a mobile) or visit their website for information about their options. The Resources page has a link to the website

If the customer elects to withdraw the NAP application:

• delete the NAP (if already keyed). See Non-agency payment (NAP) Cuba Process Help. Document discussion and the customer's decision to withdraw the NAP in a note on the NAP Detail window
• create a record in the Communication window and document the discussion and the customer’s decision to withdraw the NAP if the NAP has not already been recorded

If the customer elects to proceed with the NAP application:

• refuse the application under special circumstances in accordance with section 71D of the Child Support (Registration & Collection) Act 1988
• document the reasons for the decision in a note on the NAP Detail window using the NAP macro

See Table 9.

Payers or payees in other overseas jurisdictions may lodge NAP paid or received in another currency. When recording these payments, use the daily exchange rate that applied on the date the payment was made. If the currency is not listed on the Intranet use the currency converter on the OANDA currency converter website. The Resources page has a link to this website.

If the payer lodged the NAP, confirm the details with the payee or the Central Authority of the country in which they live. Costs associated with transferring money internationally must not be included.

Note: Child Support may consider advice regarding a NAP from an international Central Authority, regardless of whether Child Support or the Central Authority has made the assessment. This means Service Officers can contact either the Central Authority or the payee directly.

• Contact the Central Authority if the case documentation indicates this is who Child Support normally communicates with. Ask them to contact the payee to confirm if the NAP was made in lieu of child support, or
• Contact the Payee if the case documentation indicates that Child Support normally communicates directly with the customer

Note: Child Support cannot accept NAP if the liability received is an agency reimbursement liability.

Identify if there is a court order, COA, or child support agreement.

Consider whether the court order, COA or agreement has already determined if, and how the payment should be reflected on the parent’s account.

For example, where a court order states that a parent will pay school fees in addition to periodic child support, it may be appropriate to disallow a NAP for these fees.

An agreement or COA might also provide for a parent’s annual rate to be reduced to reflect payment of non-periodic costs, it would not be appropriate to accept a NAP for the same payments.

If the payee lodged the non-prescribed NAP:

• no contact with the payer is required and
• the NAP can be accepted

Was the non-prescribed NAP lodged by the payee?

• Yes, see Table 8
• No, only accept non-prescribed NAP if both customers intended it should be treated as child support, when the payment was made

The following types of payments are considered non-prescribed NAP:

• direct payments, go to Step 2
• third party payments, go to Step 3
• non cash payments, go to Step 4

Direct payments are payments made directly to the payee via:

• cash
• cheque, or
• direct credit payments

Direct payment NAP are credited in full to the payer's Child Support account where both customers intend the payment should be treated as child support.

A third party payment is any payment made by the payer to a third party in respect to a debt owed by

• the payee
• the payer, or
• both

For payments made after 1 July 2008, customers can agree on a percentage of the ongoing liability to be met by third party NAP credits.

If the customers cannot agree on a percentage, Child Support will allocate 100% of the ongoing case liability and arrears from the NAP credits until they are exhausted. For more information regarding these types of decisions, see Step 2 in Table 8.

Even if a payer nominates for a payment to be lodged as a non-prescribed NAP, discuss the option of treating it as a prescribed NAP - Some payments can be treated as either type. This may be a better option if, for example, the customers did not mutually intend for the payment to be considered a NAP.

If this is the customer’s preferred option, key a prescribed NAP. See Non-agency payment (NAP) Cuba Process Help.

If a non-prescribed NAP has already been keyed, delete it and re-key as a prescribed NAP. See Step 2 in Table 10.

The Resources page has an example of this scenario - Frequently asked questions, Question 6.

Non cash payment are made in a form other than money. This includes the transfer of property to the payee.

Confirm the monetary value of the non-cash payment. If the customers do not agree on a value obtain sufficient 'independent information' to assess the amount of the transaction.

For more information about independent evidence see Step 3 in Table 6

If the non-cash payment was made on or after 1 July 2008 to a third party, customers can elect for an ongoing percentage of the case liability to be allocated from the NAP credit. See Step 2 in Table 8.

If the payee disputes the NAP was made in lieu of child support, do not automatically disallow the NAP.

Ask if there is another explanation for the payment.

The Service Officer may be satisfied that there was mutual intent and the NAP should be accepted.

For more information about establishing mutual intent, the References page contains a link to the Child Support Guide 5.3.1: Non-agency payments.

If the facts of the NAP application are disputed, ask both customers to provide evidence to support their claims. For examples, see Table 6, Step 3.

Do both customers agree to the facts of the NAP and have confirmed they intended the payment was made in lieu of child support?

• Yes, see Table 8
• No, see Table 6

These include:

• child care costs
• essential dental and medical costs for the child
• the payee’s costs of obtaining and maintaining a motor vehicle (for example insurance, panel beating, registration, repairs, service, tyres and other miscellaneous standing costs)
• the payee’s share of accommodation costs (for example mortgage, body corporate fees, bond, rent, utilities and rates)
• schooling costs (for example school fees, books and uniforms that have been prescribed by the school or pre-school)

Mutual intent is not required for a prescribed NAP. Special rules determine the percentage that can be allocated from a NAP credit each month.

There are also limitations to when Child Support can accept a prescribed NAP. For more information about prescribed NAP, see References for a link to the Child Support Guide 5.3.1: Non-agency payments.

Note: if a payer initially applies for a prescribed NAP, the payment may also be lodged as a non-prescribed NAP. Explain the differences between the types of NAP and ask the customer which type is preferable to them.

Provide the payer with the following information:

• If the prescribed NAP amount is:
• Equal to or less than 30% of the monthly liability, Child Support will allocate the full amount immediately provided at least 70% of the monthly liability is paid through direct payment, enforcement action, non-prescribed NAP or Tax Refund Intercepts (TRIPs)
• More than 30% of the monthly liability, a maximum of 30% of the liability may be allocated each month. The excess credit is carried over into the following months. Further NAP credits in subsequent months will be allocated (subject to the 70% rule) until the total credit is allocated
• A prescribed NAP is only allocated against liabilities due after the NAP is reported to Child Support
• If 70% of the monthly liability has not been paid, the payer will not receive any credit from the prescribed NAP in that month. The payer can ‘catch up’ on these missed payments later and any unallocated prescribed NAP credits may be manually allocated, see Step 2 in Table 11
• If the payer intends to pay 70% of the liability via Australia Post or Bill Pay, they must allow at least 3 business days for the payment to be received. If the payment has not been received by the due date, the 30% will not be automatically allocated. This must be done manually
• When a prescribed NAP will be disallowed, credit will not be allocated

A prescribed NAP cannot be accepted if it was made on or after 1 July 2008, and at the time the payment was made:

• the payer had at least regular care of any of the children of the assessment
• the liability or part of the liability is being met by a lump sum credit, see the References page for information about the Child Support Guide 5.3.3: Crediting lump sum payments

Note: if the above conditions apply to the prescribed NAP but the payment was made prior to 1 July 2008, the NAP can be accepted regardless of when it is reported.

Child Support cannot allow a prescribed NAP if the ongoing liability has been raised under a:

• s143 Parentage Overpayment Order
• Spousal/De facto Maintenance order, or
• Registrable overseas maintenance liability

If any of these raised the ongoing liability, see Table 7.

Prescribed NAP credits from an accepted prescribed NAP cannot be allocated if:

• the payer has at least regular care of any of the children of the assessment
• the liability or part of the liability is being met by a lump sum credit, see the References page for information about the Child Support Guide 5.3.3: Crediting lump sum payments

Once these conditions no longer exist, the NAP credits can continue to allocate to the payer's account. From 1 July 2018 if a payer’s percentage of care reduces to below regular care form a date in the past, a prescribed NAP may be manually credited to the retrospective period if the payer has paid 70% of their new liability for that period.

If the above conditions apply to an accepted prescribed NAP but the payment was made prior to 1 July 2008, the NAP credit will continue to allocate if 70% of the ongoing liability is paid.

Cuba will perform an automatic check of the care levels each month prior to allocating prescribed NAP credits. If Cuba has not allocated the prescribed NAP credits, check the care levels of the payer.

If the payer has at least regular care of any of the children of the assessment, do not manually allocate the prescribed NAP credit.

Note: effective 1 July 2006, the allocation rate for prescribed NAP increased from 25% to 30%. This applies to all prescribed NAP approved after 1 July 2006. This is the case even if the payer made the payment prior to that date.

Check the case to identify whether the prescribed NAP should be accepted, allocated or disallowed.

Payer's level of care of the child/ren

Check the payer's:

• Current level of care of the child/ren of the assessment
• The level of care at the time the prescribed NAP was paid

These care levels may affect if a prescribed NAP can be accepted or allocated. For more information when:

• a prescribed NAP will not be accepted, see Step 3 in Table 5, or
• credits from an accepted prescribed NAP will not allocate, see Step 4 in Table 5

Identify if:

• there is a court order, change of assessment (COA) decision or child support agreement
• the liability or part of the liability is being met by a lump sum credit
• the liability is being raised under a:
• s143 Parentage Overpayment Order
• Spousal/De facto Maintenance order, or
• Registrable overseas maintenance liability

If the administrative assessment is based on a court order, COA decision or agreement identify if payments that could be categorised as prescribed NAP were considered in the final decision.

Also check any Part 6A objections or Administrative Review Tribunal (ART) first review or Social Security Appeal Tribunal (SSAT) (prior to 1 July 2015) decisions.

If 'NAP type' payments were considered in any of these decisions, it may be appropriate to disallow the NAP. See the References page Child Support Guide: 5.3.1 Non-agency payments - Discretion to refuse to credit an amount for more information.

Can the prescribed NAP be credited?

• Yes, see Table 7
• No, go to Step 7

• Prescribed NAP made prior to 1 July 1999 cannot be credited
• Payments for school books and uniforms made before 12 April 2001 cannot be considered
• International cases -prescribed NAPs do not apply to international cases registered for enforcement by Child Support under the Child Support (Registration and Collection) Act 1988

Can the prescribed NAP be credited?

• Yes, see Table 8
• No, see Table 7

If the NAP is in dispute, update the NAP record in the NAP Detail window.

Examples where a NAP is in dispute include:

• the payee denies the payment was made
• the customers disagree about the amount or value or date of the payment
• the payee disputes the payment was intended for child support
• either customer has been asked to provide information or evidence but has not done so
• being unable to contact the payee and confirm if there was mutual intent behind the NAP
• there are special circumstances in the case that indicate it may be appropriate to apply the discretion to refuse a NAP

Since 1 July 1999 Child Support has been able to refuse to credit a NAP in special circumstances. The References page has a link to the Child Support Guide 5.3.1: Non-agency payments.

Seek further information/evidence so that a decision can be made if required. Evidence could include:

• statements showing the value of the transaction
• valuation certificates
• receipts of purchase
• payee issued receipts that demonstrate the customer's intent
• quotes for equivalent services, for example lawn mowing, car servicing etc

Note: do not encourage sworn statements or affidavits provided solely for Child Support purposes, as they have no greater value than unsworn and verbal statements. Sworn statements tendered in a different process, for example a court, may be of value.

Request further written evidence. Document the evidence requested and the timeframes agreed to.

Independent evidence

Evidence provided by a third party with no apparent interest in the case is extremely valuable.

Generally, it is the customer’s responsibility to provide necessary evidence. Occasionally it may be appropriate to use Child Support’s information gathering powers.

To value a non-cash NAP, independent sources of valuations include:

• the Red Book or Glass's Guide (cars)
• real estate or local council (houses)
• department store or electrical supplier's catalogues (TV, fridge)
• advertised garden services (lawn mowing)

Gather as much information as possible about the disputed payments and document this in a notepad in the NAP Detail window.

Make a decision based on the facts after:

• both customers have provide their evidence, and
• more information has been gathered if required

Consider the following

• Was the payment made at all?
• What is the value or amount paid?
• Did both customers intended the payment to be in lieu of child support - for a non-prescribed NAP?
• Was the payment of a type that can be credited as a prescribed NAP?
• Statements by the customer about verbal arrangements can be difficult to verify without impartial evidence
• Do not automatically disallow a NAP if the payer disputes that it should be credited to the overpayment
• If neither customer can verify their claims, ask what other reason there might have been for the payment
• Previous NAP notes can indicate how the customers might consider this payment. If NAP have previously been accepted it indicates they may have agreed the payment was to pay the overpayment

Satisfactory alternative reasons for a payment, examples are:

• A payer has paid for:
• items for the child to use while the child is in the payer’s care
• a service for the child that the payee did not consent to
• Allow the NAP if:
• the payer provides evidence of a non-prescribed NAP and
• the payee is unable to provide an alternative explanation for the payment
• see Table 8
• Disallow the NAP if:
• the payer cannot provide evidence that the payment was made
• the payee advises the payment was not received and
• the payment cannot be independently confirmed
• see Table 7

Disallow the NAP if:

• the payee provides a satisfactory alternate explanation for the payment and
• the payer’s evidence does not sufficiently substantiate there was mutual intent the payment was to pay the overpayment
• see Table 7

Disallow the NAP if in the circumstances of the case it is appropriate to do so.

When making a decision regarding a non-prescribed NAP the critical issue is whether the Child Support Registrar is satisfied that both customers agreed the child support would be paid via a NAP at the time the payment was made.

A prescribed NAP may be disallowed due to:

• the circumstances of the case. For example a payer lodges a prescribed NAP but a court order already makes provisions for the payer to make that type of payment. For circumstances when a prescribed NAP may be refused, see the References page for a link to the Child Support Guide 5.3.1: Non-agency payments
• the legislative requirements for a prescribed NAP not being met. For example a payer lodges a prescribed NAP but they have regular care of any of the children of the assessment
• if the case has ended in arrears, with prescribed NAP credits and a payer is making catch up payments, consider crediting these payments. This can be despite having no ongoing liability. This is not an automatic process. See Non-agency payment (NAP) Cuba Process Help and Item 2 in Frequently Asked Questions about Non-agency payment on the Resources page

For more information, see Step 3 in Table 5.

Document the reasons for the decision using the NAP details macro. Include any finding about disputed facts and evidence that was relied on.

Finalise the NAP record.

Cuba will allow a prescribed NAP to be accepted if it was paid at a time when the payer had regular care or a lump sum agreement in place. Cuba will only provide a warning that these NAPs should be disallowed.

The Service Officer must manually disallow the NAP.

See Table 9.

Allow the NAP if in the circumstances of the case it is appropriate to do so.

Customers can elect for a specified percentage of the ongoing liability to be met by a third party NAP. The agreed percentage for a particular NAP cannot be changed later. The NAP credit will continue to allocate in accordance with the specified percentage, until the entire credit has been exhausted.

If customers cannot agree on a percentage, Child Support will allocate 100% of the NAP against the payer’s account until the NAP credit is exhausted.

The percentage is applied per NAP application, not per NAP item. See Non-agency payment (NAP) Cuba Process Help, Create a NAP record for information about how to key an agreed NAP allocation percentage.

Note: Centrelink will be notified of the total value of the accepted NAP amount rather than the amount being credited each month.

For information on how Cuba automatically allocates the credit see Non-agency payment (NAP) Cuba Process Help. Check NAP credit allocations.

In cases where non-prescribed NAPs are regularly accepted, consider if private collection is an option for the customers. Discuss this option with the customers.

Explain that Child Support can continue to enforce outstanding arrears and that the payee can opt back in for collection if payments are not made in full and on time. See Collecting child support payments privately and/or discharging arrears.

Document the reasons for Child Support’s decision.

Include any finding about disputed facts and evidence that were relied on.

Finalise the NAP record.

The NAP function automatically generates letters to the customers when NAPs are:

• allowed
• disallowed, or
• partly allowed

For information about which letters will generate, see Non-agency payment (NAP) Cuba Process Help.

An intray item generates advising there are multiple NAP letters when more than one letter of the same type but with different details issues:

• for the same customer and case, and
• on the same day

Explain to the payer:

• 70% of the monthly liability must be paid by the due date or the unallocated prescribed NAP credits will not be allocated automatically
• if they make the required payment after the due date or pay less than 70% of the liability and then later make a ‘catch-up’ payment, then manual allocation may be possible
• the 70% component of the monthly liability may be met through regular payments, enforcement action (including TRIPs), or a non-prescribed NAP
• prescribed NAPs cannot be allocated against any liabilities due prior to the notification date of the NAP
• prescribed NAP credits from an accepted prescribed NAP cannot be allocated if:
• the payer has at least regular care of any of the children of the assessment
• the liability or part of the liability is being met by a lump sum credit

Explain to the payee:

• the amount of the NAP
• 30% of the monthly liability is the maximum that can be allocated from prescribed NAP credits in any given month
• the payer must pay 70% of the monthly liability before prescribed NAP credits will be allocated to their account
• the amount of the payee’s regular disbursement if the maximum NAP credit is allocated each month and the likely duration of the reduced disbursement
• if the payee receives more than the minimum rate of Family Tax Benefit, Centrelink is notified of the entire prescribed NAP amount even if the payment may be ‘unallocated’. Centrelink will assess the NAP as if the whole amount was paid on the payment date. Offer to warm transfer the payee to Centrelink to discuss the impacts of the prescribed NAP, and
• prescribed NAP credits from an accepted prescribed NAP cannot be allocated if:
• the payer has at least regular care of any of the children of the assessment
• the liability or part of the liability is being met by a lump sum credit

Note: explain the effects of manual allocation of a prescribed NAP. See Step 2 in Table 11.

A NAP to be Reviewed intray generates if an event occurs on a case requiring NAP allocations to be re-examined. See Non-agency payment (NAP) Cuba Process Help, Check NAP credit allocations and Manually allocate NAP credits.

Do not update, cancel or delete a NAP record after the NAP has been accepted:

• Advise the customer to lodge an objection if they believe Child Support has made a mistake or applied the law incorrectly. See Child Support objections. Note: only a payee can object to a decision to credit a NAP. A payer who disagrees with a decision to credit a NAP because they paid more than the credited amount can make an application for an additional amount to be credited as a NAP
• If a Child Support error has occurred See Correcting errors on Child Support cases

Delete a NAP credit only if:

• there is an error with the NAP item. For example it has been recorded on the wrong case or it is a duplicate of a previously lodged NAP, and
• the NAP application is still in progress. That is at least one NAP item in the record still has a keyed status

Cuba has specific rules when allocating NAP credits. See Non-agency payment (NAP) Cuba Process Help,

Check NAP credit allocations for information and examples about how Cuba allocates NAPs.

Payer catches up on missed payments

If the payer misses child support payments but later catches up, prescribed NAP allocations that were not previously credited may be manually allocated. See Non-agency payment (NAP) Cuba Process Help.

Manually allocate NAP credits for information about how to manually allocate prescribed and non-prescribed NAPs.

Payer catches up on missed payments where case has ended in arrears

Consider crediting a NAP if:

• a case has ended in arrears, with an uncredited prescribed NAP, and
• a payer is making catch up payments

Crediting can only occur towards liabilities:

• between the date of notification of a NAP and the case ending
• where the credits were not previously applied, and
• all other NAP crediting criteria are met

This is not an automatic process. See Manually allocate NAP credits table in non-agency payment (NAP) Cuba Process Help.

The Resources page has an example.

Care date of effect

From 1 July 2018, a change in care that is notified more than 28 days after the change occurred will apply the decreased care percentage for the parent from the date care changed. If the care change causes a payer’s percentage to fall below regular care for a period a prescribed NAP may be manually credited if the payer:

• has paid 70% of their new liability for that period, or
• did not meet 70% of their new liability for that period, but subsequently pays the balance owed

Note: the payee must be advised of the effect of a manual allocation from a prescribed NAP. A prescribed NAP cannot be allocated on a nil account balance.

With overpayments customer roles are the opposite of the usual process.

• The payee is the person who owes the overpayment, and
• The payer is the person who has overpaid

If the payment has been reported by the payer:

• record using the NAP macro. Only basic details are required. For example the amount or agreed value, the date paid, confirmation it was to pay the payee’s overpayment
• add the NAP macro document to the NAP Detail window in the Case window
• no contact with the payee is required, accept the NAP, go to Step 8

To answer the questions below, contact the customers if required.

Use the NAP macro when taking a NAP application to record this information:

• Was there mutual intent? When the payment was made, did both customers intend it be credited for an overpayment?
• What is the amount or agreed value?
• Who received the payment? For example payer, a third party, school, doctor, hospital, etc.
• How was the payment made? For example cash, cheque, bank deposit, payment in kind
• When was the payment made? Date of the transaction?

If the NAP was reported by the payee, contact the payer to:

• confirm the payment was received, and
• that it was intended to pay the payee overpayment

Do both customers agree to the facts of the NAP and confirm the payment was for the payee overpayment?

• Yes, go to Step 8
• No, go to Step 5

If a NAP payment for an overpayment is disputed, seek supporting evidence.

Examples of a disputed NAP include:

• the payer denies the payment was made
• the customers disagree about the amount or value or date of the payment
• the payer disputes the payment was intended to pay the overpayment
• either customer has been asked to provide information or evidence but has not done so
• being unable to contact the payer and confirm if there was mutual intent behind the NAP

Make a decision based on the facts after:

• both customers have provide their evidence, and
• more information has been gathered if required

Consider the following:

• Was the payment made at all?
• What is the value or amount paid?
• Statements by the customer about verbal arrangements can be difficult to verify without impartial evidence
• Do not automatically disallow a NAP if the payer disputes that it should be credited to the overpayment
• If neither customer can verify their claims, ask what other reason there might have been for the payment
• Previous NAP notes can indicate how the customers might consider this payment. If NAP have previously been accepted it indicates they may have agreed the payment was to pay the overpayment

Has any of the overpayment been recovered after the NAP was made?

• Yes, refer to SSO to review and take any appropriate action
• No, go to Step 7

• Allow the NAP if:
• the payee provides evidence of NAP and
• the payer is unable to provide an alternative explanation for the payment
• go to Step 8
• Disallow the NAP if:
• the payee cannot provide evidence that the payment was made
• the payer advises the payment was not received and
• the payment cannot be independently confirmed
• go to Step 9
• Disallow the NAP if:
• the payer provides a satisfactory alternate explanation for the payment and
• the payee’s evidence does not sufficiently substantiate there was mutual intent the payment was to pay the overpayment
• go to Step 9

Cuba does not have the facility to allow a NAP for an overpayment.

Action this workaround to implement the decision to allow the NAP.

In the Manage Gift and Overpayment window in the overpayment’s case:

• reduce the overpayment by an amount equal to the NAP by removing the overpayment
• select the action type ‘Overpay not recoverable by DHS’ and a reason of ‘Other’

Issue the approved NAP – Allow letters to the respective parties.

Ensure the following:

• the payer understands their payer account statement may show the overpayment being reduced
• when the overpayment NAP is processed add a notepad explaining the reasons

Procedure ends here.

If appropriate in this case, disallow the NAP.

Cuba does not have the facility to disallow a NAP for an overpayment.

Action this workaround to implement a decision to disallow the NAP.

Document the decision in the Case window of the overpayment’s case.

Issue the letters to both customers:

• UQ19.00 Overpayment Non-agency payment decision - payer
• UQ19.01 Overpayment Non-agency payment decision – payee

Contact the payee to negotiate repayment of the overpayment. Follow the process in Debt repayment.

Check:

• payee opt out accepted
• election to end assessment received
• suspension of liability due to reconciliation
• role reversal

Note: this does not apply to a prescribed NAP, which can carry over to a different child support enforcement period as long as it relates to the same liability.

If an unallocated NAP remain on a case and there is no current enforceable maintenance liability, the NAP must be disregarded from the case:

• disallow unallocated NAP
• reduce partly allocated NAP to $zero

See Non-agency payment (NAP) Cuba Process Help - Disregarding a NAP

Documentation must include:

• the enforceable liability ended because (insert reason) - unallocated NAP of (insert amount) has been disallowed
  OR
• the enforceable liability ended because (insert reason) - unallocated NAP balance of (insert amount) has been reduced to $Zero

See References for a link to The Child Support Guide 5.3.1, Non-agency payments.

• Delete any NAP letters generated
• Issue appropriate manual letter depending on case circumstances
• UQ19.02 - Unallocated NAP - Ended Case
• UQ19.03 - Unallocated NAP - Role reversal
• UQ19.04 - Unallocated NAP - Opt Out
• UQ19.05 - Unallocated NAP - Suspension

See Resources for manual letters.