Stage 1– low-income non-enforcement (LINE) period 277-05050000

An application to apply a LINE period can be received verbally, on a form, or otherwise in writing.

Services Officers may be processing a LINE application:

• from a previously documented phone call, or
• in real time including an application received in writing

The eligibility conditions for a LINE period are:

• the liability must be an Australian court order or court registered agreement for child maintenance or a child and/or spousal maintenance order made by, or a child and/or spousal maintenance agreement registered by, a judicial authority of a reciprocating jurisdiction - LINE does not apply to Australian spousal maintenance liabilities however it does apply to overseas spousal maintenance liabilities
• the application must be made by the payer
• if the liability is an Australian child maintenance order or court registered agreement, it must not already provide for a reduction in income or unemployment - this requirement does not apply to overseas liabilities
• the case must be collect, and
• the payer must receive or have applied for a Centrelink pension or benefit

If the payer is unemployed but does not receive or has not applied for a Centrelink pension or benefit they cannot apply for a LINE period.

For example they are not eligible because their new partner is employed.

Advise the payer they have the option to apply to court to have the order varied.

Does the application meet all the above conditions for LINE?

• Yes, go to Step 3
• No, go to Step 5

Record the payer's application as an Opt-Out in the Case Collection Details window, as a pended application, using the reason of Low Enforcement Line Period.

See Low-income non-enforcement (LINE) period Cuba process help.

Complete the Centrelink/Child Support exchange of information macro, selecting the Prescribed Income Test (PIT) information check box.

The macro generates an email to the Centrelink Child Support Unit to confirm if the payer receives or has applied for a Centrelink pension or benefit.

Update the initial Communication window notepad to record that a PIT form has been sent to Centrelink.

When the PIT form is returned:

• the response will be attached to the View Correspondence window by the Mail Handling team, and
• a CSU Response Received intray generates to notify the Service Officer the response has been received

Does Centrelink advise the PIT is satisfied?

• Yes, go to Step 6
• No, they advise the PIT is not satisfied. Go to Step 5

Contact the customer to discuss their options. See Contact with Child Support customers.

Reject a LINE period application if Centrelink advise the payer does not satisfy the PIT.

To process a LINE rejection, see Low-income non-enforcement (LINE) period Cuba process help.

If Centrelink confirms the payer satisfies the PIT, determine the start date for the LINE period.

• A LINE period starts on the day the payer first satisfied the PIT except if it will:
• create an overpayment for the payee, or
• includes any day which was non-collect
• If either of above occurs, the period must start from another day. The LINE period should be started on the earliest date of these events:
• the day the payer made their application for a LINE period
• the day an overpayment will not be produced, or
• the day after the case is collect
• Determine the start date of the LINE period
• Process the application, see Low-income non-enforcement (LINE) period Cuba process help

Cuba automatically produces the following letters:

• MOO3-1 - a letter to the applicant (either payer or payee) to advise that an application to opt out has been rejected, and
• MOO3-2 - a letter to both clients to advise that an application to opt out has been accepted

There is a known error with the M003-2 for the payee, it requests the payee to pay the remaining arrears owed by the payer.

Delete the Cuba letter to the payee and replace it with a manual letter.

Check that the letters are correct and appropriate to the circumstances of the case. See Letters Cuba process help.

The 3 circumstances that end a LINE period are:

• the payer ceases to receive a Centrelink pension or benefit
• the payer does not satisfy the Prescribed Income Test (PIT) in regards to a Centrelink pension or benefit paid for a particular fortnight, or
• the liability ends

There is no automated indicator where a person ceased to receive Centrelink pension or benefit or when they do not satisfy the PIT.

When Child Support becomes aware of 1 of the above conditions, document it in the Case Collection Details window.

The date the LINE period ends is either:

• the date the Centrelink pension or benefit payment ceased, or
• the first benefit payment period, that is fortnight in which the payer did not satisfy the PIT

Contact the customer to determine an end date.

In some circumstances, the PIT may not be met for a short or temporary period. For example, high casual wages earned one fortnight while on JobSeeker Payment (JSP).

Discuss with the customer if a new election for a LINE period is required. If unsure of the exact dates involved, contact Centrelink to confirm.

To process a LINE period end, see Low-income non-enforcement (LINE) period Cuba process help.

The following letters automatically generate to the payer and payee informing them the case is now for collection by Child Support:

• MOI1-1 - a letter to a payee to advise that line period was ended and child support is again payable, or
• MOI1-2 - a letter to payer to advise that a low income non enforcement period has ended and child support is again payable

Check the letters are correct, see Letters Cuba process help.