Child support estimates 277-07040000

• For estimates taken verbally via phone or in person, see Table 2
• If the customer lodged the estimate online as part of an Application for Assessment, see Initial Estimate in Pluto
• To check if a pended estimate was taken verbally or online, select the intray type from the options below

These intrays generate for online, written or verbal estimates that have been pended in Cuba. To check if it was lodged online:

• Open the intray. If the ‘Created by’ field of the intray shows as ‘SCSAE’ the estimate was lodged online. Go to Step 2
• If the intray ‘Created by’ field of the intray shows as Service Officer ID starting with a U, the estimate may have been lodged verbally or lodged online then keyed manually. If the notepads attached to the Pended estimate indicates the estimate was:
• lodged online then manually keyed by a Service Officer, go to Step 2
• taken by phone or in person, see Table 2

This intray generates when an estimate is lodged online but the system could not automatically pend the estimate or make it invalid. The notepad for the estimate will be in the Communication window of Cuba. The top of that notepad will have a system ID. This is an online estimate, go to Step 2.

Check the Correspondence window in Cuba and open the document with a date that matches the intray creation date. This correspondence may be a form or a letter, go to Step 2.

• Use the Estimate documentation macro and this procedure to check and document the online or written estimate details
• Note any issues that need clarifying with the customer

Go to the Client Income window.

Is there an ESTIMATE INCOME or CLI AMENDED EST with a status of Pended?

• Yes, go to Step 5
• No, go to Step 4

Pend the estimate in Cuba using the details from the Communication window and/or the Correspondence window documents.

In most cases the notification date will be the date the written estimate was received.

See Estimates Cuba Process Help.

In the customer’s Client Income window, identify the ESTIMATE INCOME or CLI AMENDED EST with a status of Pended:

• highlight the pended entry, select the Open and go to the Estimate Income window to view the details
• check:
• the income details and notepad for each Pended estimate
• all recent communications that may relate to the estimate, including those with an Issue type of ‘Estimate’ or ‘Income Used’
• any recent documents that may have information about an estimate

If the notepads indicate:

• the estimate has not been checked to determine if clarification or evidence is needed, go to Step 6
• information or evidence was required and is now available, see Table 6
• information or evidence was requested, and:
• the due date has not past, wait until after the due date, then see Table 6
• has not been provided by the due date, see Table 6
• there are system issues or technical advice is needed. Check it has been referred to a Service Support Officer (SSO). If not, refer to an SSO

Indicators the estimate requires further contact with the customer:

• Multiple online estimates and it is unclear which estimate/s the customer want to use
• There is a lump sum or specific period payment in a previous estimate that may need lump sum apportionment
• The estimate contains overseas income
• The annualised estimate is below the self-support amount, and the customer is not receiving Centrelink benefits
• The customer has a history of inaccurate estimates. Check Cuba, go to Collection > Penalty details > Estimate Penalty
• Income searches show conflicting information with no reasonable explanation
• The customer lodges a $0 YTD income

Attempt to confirm the reason for the estimate and the amount estimated.

Check the information available in Cuba, Customer First and ATO systems such as:

• Client Benefits window
• External Information window
• Employer information, e.g. contact with employers, reason for employer withholding starting, changing or ending
• Correspondence window
• Section 120 or 161 responses
• Client Details to confirm the customer is incarcerated
• ICP to check for employment declarations

Do not use Single Touch Payroll (STP) information in isolation to make an income decision. Confirmation is required from another source, e.g., customer confirmation. If a customer disputes the information, ask for evidence.

Is evidence required to support estimate accuracy?

• Yes, see Table 5 > Step 2
• No, see Table 6

When a customer contacts Child Support, they may discuss their situation without saying they wish to lodge an estimate. In these situations, give all options to customers including estimates, where appropriate. Indications an estimate may be appropriate include the customer discussing:

• the loss of a job or contract
• a significant reduction in hours or overtime
• difficulties meeting their payments
• they have recently started receiving Centrelink payments

Explore the customer's circumstances, now and in the future, to establish if an estimate is the best option.

Use the Estimate documentation macro to take and clarify estimate details.

Discuss the:

• definition of an estimate including the start date of the estimate, see Table 3 for more information
• criteria that must be met for an estimate to be lodged, for more information, see Table 3

Tell the customer, estimates generally must apply to all applicable cases including separate cases, reverse cases and/or non-parent carer cases.

The exceptions are where legislation or policy prevents this. E.g.:

• An Income Amount Order (IAO) does not apply to all cases
• Different last relevant years of incomes (LRYI) affect an estimate’s validity differently across cases
• A new separate case for children of a different relationship has started during the same financial year as an existing estimate on a separate case

For instructions to apply the estimate to multiple case, see Table 7.

Note: if a customer indicates they want the estimate to apply to some cases but not others, ask the customer:

• why they do not want the estimate to apply to a case
• if they have fears for their safety if an estimate is applied to a specific case. Explain their estimate becomes their Adjusted Taxable Income (ATI) and must apply to all cases. If the customer continues to express concerns, seek SSO/PSM support, see Family and domestic violence and offer appropriate options

Below are some reasons why an estimate may not be the most suitable option:

• Customer has advised of a potentially fraudulent ATO income being used. In most cases the estimate will be cancelled if:
• the sole reason for the estimate is that the customer believes the ATO income being used in the assessment is potentially fraudulent, and
• the ATO income is later cancelled
  Note: contact the customer if they made an estimate election and the estimate was compared to (for the purposes of the 85% validity test) the now-cancelled income. Tell them the assessment will now be based on the income replacement rules for cancelled incomes
• New CS Period will start. E.g., the customer is about to lodge a tax return which will trigger a new CS Period, and this income is lower than the estimated income. The customer can still estimate their income; however, the assessment will not revert to using the LRYI until the end of the estimate period
• Contract or seasonal work results in income fluctuations during the financial year and the customer expects their taxable income to be similar to the ATI used in their assessment
• A recently unemployed customer expects to obtain employment within a short period with income similar to, or more than, the relevant ATI
• A redundancy payout or lump sum payment is expected from another source. Explain the taxable component of the lump sum will be included in their estimated ATI if received during the estimate period and the consequences if this occurs. Tell the customer they have the option of lodging the estimate after receiving the lump sum
• The child support case ends before 30 June. Customers may prefer to avoid estimate reconciliation and potential retrospective changes after their case ends

Check if there are other options more suitable for the customer’s circumstances, such as:

• Applying for:
• post separation income (PSI) to be excluded from the assessment in certain circumstances. See Post separation income for Child Support parents
• Fixed annual rate (FAR) not to apply. See Fixed annual rate not to apply applications
• Minimum annual rate (MAR) not to apply. See Minimum annual rate to nil – Reducing child support assessments, or
• Change of assessment (COA) in special circumstances. See Change of assessment in special circumstances
• Notional assessment estimates. For information on lodging an estimate for a notional assessment, see Notional assessment relating to child support agreements

Is this the customer first estimate in the financial year?

• Yes, see Table 3
• No, it is a subsequent estimate, see Table 4

The estimate is valid if:

• The election is made by the customer who the estimate is for. The only exception is if the estimate is made by a person with legal power of attorney or other legal authority to act for the customer. See Child Support Guide 11.4.6 Authorised representatives
• It is a Stage 2 child support assessment made under the Child Support (Assessment) Act 1989. This procedure does not apply to Stage 1 cases. If a Stage 1 case is in place where a court order or a court-registered agreement has set the amount for child maintenance, spousal maintenance or de facto maintenance, the estimate is invalid. After processing the estimate, help the customer with Stage 1 – low-income non-enforcement (LINE) period
• There is no income amount order (IAO) in force relating to the estimating customer on the start day of the election or for any part of the remainder of the financial year. For further information on IAO see the Child Support Guide 1.1.I.10 Income amount orders
• The income for the financial year being used for the assessment at the time of the initial estimate, must be one of the following:
• an Australian Taxation Office (ATO) taxable income (including amended taxable incomes)
• an Income Tax Declaration (ITD), or
• an income advised by an overseas authority. See Income processing for Child Support customers (international parents)
• The first estimate election must be 85% or less than the adjusted taxable income (ATI) used in the child support assessment. The final determination about whether an estimate meets the 85% validity rule will be made when the estimate details have been confirmed and keyed in the system. Manage the customer expectations about the estimate if identified early that the estimate will not meet this rule

Does the estimate appear to be valid?

• Yes, or not yet confirmed. The final determination of validity will be made after the estimate election is confirmed and processed. Go to Step 3
• No:
• the estimate will not meet the 85% or less validity check. Key the estimate. The final determination of validity will be made after the estimate election is fully confirmed and processed. Go to Step 2
• for all other reasons, the estimate is unable to be keyed in Cuba. Tell the person requesting the estimate that no further action can be taken. Document the request in the Communication window. Explain the reason and any other available options to the customer. Procedure ends here

Start Date

The first estimate in a financial year can start from:

• 1 July (if notified on or before 1 July). This option is available from April each year
• the first date of a new Child Support Period (CS Period) if notified on/before that date. E.g., a new CS Period using a higher income is due to start on 1 August. The customer calls in July and elects to start their estimate from the CS Period start date (1 August)
• the date the estimate is received by Child support - the date of notification. E.g., if a customer first notifies their estimated income on 20 May saying their income reduced in April. The estimate start date is 20 May
• a retrospective/backdated start date only if:
• a Cuba document or a call recording confirms that the customer notified Child Support of a change in income, asked to lodge an estimate and Child Support failed to action the request. The estimate must be pended and the intray forwarded to an APS5 or above for approval, or
• the customer's circumstances satisfy an estimate deeming policy. Note: SSO approval is not required when applying a deeming policy. Record a document to support the decision
• an earlier date if Child Support has deemed the notification date, see Estimate Deeming Policies

For more information see Child Support Guide 3.4 Estimated income.

Confirm with customer:

• Date of Notification – the day Child Support received the estimate. E.g., a customer first notifies of their estimated income on 20 December saying their income reduced in November. The estimate start date is 20 December
• Date of Event – the day the income first became inaccurate
• Effective (Start) Date – the day the estimated income will be used in the assessment. For an initial estimate this will generally be the Date of Notification
• End Date - all estimates must be made for a period ending 30 June in the financial year they apply to. If the case ends before 30 June, discuss possible effects as the estimate continues until 30 June. This means additional income earned between the case end date and 30 June is included in the estimate reconciliation

Ask the customer why their income has changed to help determine the estimate accuracy and future conversations. Reasons for lodging an estimate may include:

• loss of job
• reduced hours
• part time hours
• loss or increase in overtime
• starting or stopping receiving Parental Leave Payments
• ATI in assessment is inflated due to a one-off event such as redundancy or compensation payout

Note: this is the minimum detail required to save the estimate as pended. The estimate can be completed later when/if evidence has been requested. However, where possible the customer should provide all available income details before saving the estimate as pended.

Has the customer indicated they have any overseas income in the YTD or Estimate period?

• Yes, go to Step 4
• No, go to Step 5

Check customer’s residency

From the Individual Customer Details window, select Go > Details > Go > Residency. Check the record with a status of Confirmed.

If there are no residency decisions listed or in progress, this generally indicates the customer is an Australian resident.

If the residency information in Cuba does not match the information provided by the customer, a Residency decision may be required by a specialist Residency Service Officer.

When selecting the estimate type in Cuba, if the customer is an:

• Australian resident with overseas income, select ESTIMATE INCOME
• Make sure the estimate includes all components of ATI
• Key the overseas income as Target Foreign income. See Child Support Guide 3.1.1 Adjusted taxable income
• overseas resident, select OS EST INCOME

Overseas residents who have a valid Australian formula assessment can lodge an estimate. Generally, they will be residents of reciprocating jurisdictions. However, in specific circumstances, a payee who is a resident in a non-reciprocating jurisdiction with an eligible Australian child may still be eligible.

Overseas estimated income must be provided for the Australian financial year from 1 July to 30 June.

Overseas residents must include in their estimate:

• all overseas income that is taxable under the legislation of the relevant reciprocating jurisdiction/s, converted to Australian dollars
• any non-taxable overseas income that meets the definition of Target Foreign Income, and
• any Australian income which forms part of an adjusted taxable income (ATI)

Currency conversion

Customers must provide estimated overseas income amounts in the currency it was/will be received. The overseas currency must then be converted to Australian Dollars before being recorded in Cuba. To convert the income, use either the:

• same average exchange rate for the relevant financial year of the country as was used in calculating the original taxable income, or
• International Income Converter macro to determine the exchange rate that was in place at the time, if this is not documented in the Income notepad

If the currency or the year to be converted is not available on the International Income Converter, email the International Disbursement Team to get the exchange rate.

Evidence of income

When taking an estimate from a customer who is not in Australia seek documentary evidence to support the customer's claims. The decision to accept an estimate of this type without evidence must be made by a Service Support Officer (SSO).

Evidence can include copies of payslips and official documentation from a benefit provider. For more information on requesting evidence, see Table 5.

Request an Amended Certificate

When an estimate changes the liability in an international case, notification must be sent to the overseas authority who is collecting child support. Create and route an intray to the International team if the liability changes due to the estimate. For information about amended certificates, see Table 7 > Step 16.

If the estimate starts on 1 July, a YTD income is not required, go to Step 6.

If the estimate starts after 1 July, explain the importance of YTD. The YTD income is the total income from 1 July to the day before the estimate starts. It is important that the YTD is correct as it is used to check the accuracy of the estimate at the end of the year. An incorrect YTD may result in:

• the customer paying or receiving the incorrect amount of child support
• an unexpected debt when the estimate is reconciled

Ask about all relevant income types in the YTD period. All the relevant income components of ATI must be included in the YTD period, as outlined in Child Support Guide 3.1 Child support income.

Check that the customer has included income in the YTD period from:

• all employers (include current employer and all previous employers)
• all businesses they received income from
• any relevant Centrelink payments. Use Customer First to check that both taxable and relevant non-taxable Centrelink amounts are correctly included in the YTD
• any taxable or relevant non-taxable DVA payments. If customer cannot provide details, see Direct requests for information from Department of Veterans' Affairs (DVA)
• any taxable termination payments received
• any taxable superannuation withdrawals

Also check that all allowable deductions have been taken into account.

Lump sum payments in YTD

Customers may advise of one-off lump sum payments in the YTD period (termination payments, superannuation withdrawals, commissions or bonuses). Only include payments that form part of ATI. Customers may need to check with their employer, accountant, superannuation fund or the ATO to confirm if their lump sum payment/s are tax free, partially taxable or fully taxable.

Payments that cannot be included

If customers include National Disability Insurance Scheme (NDIS), National Redress Scheme, First Home Super Saver Scheme or Territories Stolen Generations Redress Scheme (ongoing or lump sum) as an income source, document in a notepad for information only. Do not include in any calculations, as they are not considered as income for Child Support purposes.

YTD of $0

If the customer lodges a $0 YTD income, check this is accurate. Ask how the customer supported themselves during the YTD period.

Request evidence

If unsatisfied with the YTD accuracy, encourage customers to provide evidence of their claims as this helps to make sure the YTD amounts are correct. If required, request evidence within 14 days. Explain that if evidence is not received, the decision will be based on the information available. Evidence includes:

• an employment termination certificate
• payslips
• a letter from employer with YTD
• a provisional profit and loss statement (tell the customer they could be charged by their accountant for requesting this)

If the evidence indicates the estimate or YTD is not reasonably accurate, the customer can withdraw or amend their election. If Child Support is satisfied that the YTD income has been overstated, the estimate can be refused.

Note: only in exceptional circumstances, if the customer cannot provide their YTD ATI information, consider issuing an s161 notice to the employer to request the information. E.g., customer is incarcerated.

Keeping the YTD accurate

Customers can update or correct the YTD ATI provided in their initial estimate any time before estimate reconciliation. Only Child Support Service Officers can update a YTD after estimate reconciliation.

Updating a YTD

Has the customer contacted only to update a YTD in a previously accepted estimate?

• Yes, see Table 9
• No, go to Step 6

Check the estimated ATI amount

The customer must provide their estimated ATI income for:

• the financial year (if starting on 1 July), or
• the remainder of the financial year (if starting after 1 July)

Include all the relevant ATI income components, as outlined in Child Support Guide 3.1 Child support income.

Check the customer has included income expected from:

• all employers they expect to receive taxable income from
• all businesses they expect to receive taxable income from
• any relevant Centrelink or DVA payments (taxable or specified non-taxable)
• any taxable termination payments expected in the estimate period
• any taxable superannuation withdrawals expected in the estimate period

Also check that all allowable deductions have been taken into account.

Payments that cannot be included

If customers include National Disability Insurance Scheme (NDIS), National Redress Scheme, First Home Super Saver Scheme or Territories Stolen Generations Redress Scheme (ongoing or lump sum) as an income source, document in a notepad for information only. Do not include in any calculations, as they are not considered as income for child support purposes.

Payment frequency

Customers can provide their ATI as periodic amounts (weekly, fortnightly, monthly) or as one off (lump sum) amounts.

Note: customers may elect to provide their ATI components as single amounts, such as taxable income $32,400 per annum plus reportable fringe benefits of $8,700 per annum. Do not refuse the estimate for missing employer name/payment frequency details. For customers who insist on providing their ATI components as single amounts, apply a workaround. Tell the customer that to record their estimate election, the taxable income will be recorded as a weekly amount. Document the income component was provided as a single amount and recorded as weekly to enable loading to the system. Document any calculations. See Child Support Guide 3.4 Estimates income.

Keeping the estimate accurate

A notice will be sent requiring the customer to inform Child Support of any change in their circumstances within 14 days (60 days for international customers). Customers need to tell Child Support as soon as possible of any event that affects the accuracy of the estimate. Penalties may apply if a customer underestimates their income.

Tell the customer that if they elect to estimate their income:

• the assessment will be calculated on income they expect to earn from the start of the estimate to the end of the financial year
• they must notify Child Support of any changes to their income during the financial year
• the estimate will be reconciled after the end of the financial year and if the estimate is not accurate, this could result in:
• a child support debt. If a debt is raised when the estimate is auto reconciled as a result of tax lodgement, their tax refund will be automatically intercepted and applied to the debt
• estimate penalties, for underestimated amounts

Encourage customer to use online services to update estimate

If the customer is not enrolled in:

• Child Support online, support them to enrol and link to the service via myGov
• Express Plus Child Support mobile app. Help customers who have an online account to download and set up the Express Plus mobile app

A message will display in Cuba if a case is expected to end during the financial year.

Tell the customer:

• All the income earned within the financial year will be included in the estimate reconciliation. This includes amounts earned after the case ends.
• They cannot lodge a subsequent estimate after the case ends even

For example:

The customer lodges an estimate of income on 1 October 2025.

The case will end 15 November 2025.

The customer’s income increases between the end date of their case (15 November 2025) and the end of the financial year (30 June 2026). They cannot lodge a subsequent estimate after 15 November to reflect their increased income.

The estimate will be reconciled based on the taxable income for 2025/2026 financial year (Actual ATI).

The reconciling income will be applied for the period the estimate was used in the assessment until the case ends (1 October 2025 to 15 November 2025).

Play the Rights and Obligations Automated Message to the customer using Services Australia Workspace:

• From the dropdown list under the Automated Messages icon, select CSP – Estimates with the appropriate language
• Select Play to start playing the message

If the automated message is not available, read the Rights and Obligations message to the customer. See the Resources for details.

In the Estimate window select the Rights and obligations discussed with the customer check box once the customer confirms they understand the Rights and Obligations.

Save the estimate and record a notepad to Pend the default status

See Table 6.

A subsequent estimate:

• is also known as a customer amended estimate
• is an estimate lodged after the initial estimate, which apply to the same financial year as the initial estimate to reflect a change in the customer’s income
• in Cuba, shows as a CLI AMENDED EST

Note: if there has been a change to the customer’s income and the customer does not provide a subsequent estimate, a CSA Amendment may be required. See Child Support estimates review (Post 1 July 2010).

Customers can lodge a subsequent (amended) estimate:

• during the financial year at any time:
• if their initial estimate is no longer accurate, or
• to replace another subsequent estimate
• after the financial year has ended (including on an ended case) if the estimate:
• has not been reconciled, and
• election is higher than the last estimate

Subsequent (amended) estimates must generally be applied to all case numbers that are or were active in that financial year. This includes:

• separate cases
• reverse cases and
• non-parent carer cases

The exception is if legislation or policy prevents this, see Table 7.

Check if the subsequent estimate will take effect from the date of:

• notification, or
• date of event. Income details must be taken from the date of event

If the subsequent income estimate amount is:

• less than the preceding estimate, the start date is the date of notification. Except where the subsequent estimate increases the assessment. E.g., if a paying parent’s estimate changes their liability from a minimum annual rate to a fixed annual rate (FAR), use the date of event
• more than the preceding estimate, the start date is the date of event. Except where the subsequent estimate decreases the assessment. E.g., if the paying parent’s estimate changes their liability from FAR to an annual rate less than FAR, use the date of notification

Delay between date of event and date of notification for a subsequent lower estimate

For emergency events, check if there is a relevant estimate deeming policy to deem an earlier notification date.

Seek advice from a Specialised Assessment Team PSM if:

• no relevant deeming policy
• there was a delay between the date of event and date of notification which may disadvantage the customer
• the subsequent estimate is lower than the preceding estimate, and
• the event that caused the lower income meets the conditions set out in Child Support Guide 3.4.1 Making an income estimate election Retrospective estimate reviews (income decrease)

When taking a subsequent estimate, check all previous estimates for 2 types of payments Cuba treats as a lump sum:

• One Off Payments, generally a payment made on a single date. E.g., a termination payment, bonus, commission, super withdrawal
• Specific Period Payments, a customer advises they will receive payments for a specific period that will end before 30 June. E.g., a contract for $850 per week for the period 1 November 2024 – 31 March 2025

When first included in an estimate, these payments are automatically applied evenly across all the days in the remaining estimate period, up to 30 June. The whole amount is included in the total estimated income expected over a year.

If a subsequent customer or Child Support amended estimate is accepted from a later date, a portion of these payments will no longer be included in the total income expected. This may result in an unexpected debt when the estimate is reconciled. Manual action can be taken to include these amounts. This manual action is called Lump Sum Apportionment.

Were there any lump sums or specific period payments in any previous estimate?

• Yes, tell the customer they can carry the unused portion of those earlier payments into their subsequent estimate. This may prevent an unexpected debt when the estimate is reconciled. To calculate the amount to carry forward into the subsequent estimate, use the Lump Sum Apportionment Calculator
• No, go to Step 4

Confirm the details provided verbally by the customer.

See Table 5 to determine what further information and evidence is required.

Conduct searches to determine if the estimate is accurate when:

• the annualised estimate is below the self-support amount, and the customer is not receiving Centrelink benefits.
• the customer has a history of inaccurate estimates. Check Cuba, go to Collection > Penalty details > Estimate Penalty
• an income searches show conflicting information with no explanation
• the Service Officer believes the estimate may be inaccurate

Attempt to confirm the information supplied, the reason for the estimate and the amount estimated. Check the information available in Cuba, Customer First and ATO systems such as:

• Client Benefits window
• External Information window
• Employer information, e.g. contact with employers, reason for employer withholding starting, changing or ending
• Correspondence window
• Section 120 or 161 responses
• Client Details to confirm the customer is incarcerated
• ICP to check for employment declarations

Do not use Single Touch Payroll (STP) information in isolation to make an income decision. Confirmation is required from another source, e.g., customer confirmation. If a customer disputes the information, ask for evidence.

Is there sufficient evidence to support the estimate and the YTD?

• Yes, document the evidence, see Table 6
• No, go to Step 2

If the customers estimate meets one of the criteria set out in Step 1, ask the customer to provide evidence within 14 days.

Use Pre call SMS and attempt contact by phone

If contact by phone is not successful, send a Please Call letter. See Contacting child support customers.

Explain:

• If evidence is not received, the estimate may be refused if Child Support are not satisfied the estimate is accurate
• If the evidence indicates the estimate is not reasonably accurate, the estimate may be refused

While it is not a legal requirement for customers to provide documentary evidence of their claims the Service Officer must be satisfied the customer’s:

• actual income will not be higher than their estimated income, and
• actual YTD income is not lower than the YTD provided

Documentary evidence may include:

• an employment termination certificate
• payslips
• a statement of benefit from Centrelink (if this information is not available on the Benefits window in Cuba and was not available in Customer First)
• a statement of benefits from an overseas authority
• a provisional profit and loss statement. Do not encourage customers to get such a statement from their accountant without warning:
• the accountant is likely to charge for this service
• Child Support will not contribute towards that cost

If the customer refuses to provide evidence, decide if the actual income is likely to be the same as or lower than the estimated income. If needed, request information from third parties such as an employer. See Child Support's information gathering powers.

Pend the estimate.

Follow the Customer Management Approach (CMA) process

Procedure pauses while waiting for evidence.

Note: if there is more than one case number, see Table 7.

Estimates during an application for assessment

If processing a separate estimate in Pluto or Cuba, do not finalise the estimate until the application for assessment is accepted.

Contact attempts

If customer contact was attempted in previous steps and was unsuccessful, consider if the estimate is valid and complete. If the estimate is valid and complete, it cannot be refused solely due to unsuccessful contact. To confirm whether it meets the criteria for refusal, see Step 5.

Consider all information and evidence

After the due date to provide evidence, consider:

• all available information and evidence requested in Table 5
• any evidence that has been provided
• if the evidence supports the income information in the estimate

Make decision

How the decision is keyed will impact on the wording of the letter issued to the customer.

Consider all information available before deciding if the estimate election is:

• to be withdrawn, go to Step 2
• invalid, go to Step 3
• incomplete, go to Step 4
• to be refused, go to Step 5, or
• to be accepted, go to Step 6

A customer can withdraw an estimate election:

• before an estimate decision is made. To withdraw an estimate in this scenario, document the customer's decision in Cuba and delete the pended estimate election
• after an estimate decision is made but before the estimate start date. An estimate lodged to start on 1 July or the first day of a new CS Period can be withdrawn at any time before the start date of the estimate

The systems set the:

• Estimate status to Cancelled
• End Reason to Withdrawn

Note: a new assessment is automatically made based on the income used before the estimate was accepted.

For help withdrawing an estimate, see Table 2 in Estimates Cuba Process Help.

Issue a letter advising the estimate has been withdrawn. Go to Step 12.

An estimate must meet the validity requirements as explained in Table 3. Also see Child Support Guide 3.4 Estimated income.

Estimates that do not meet all the relevant validity requirements are considered invalid and must be rejected. The election is considered not to have been made and rejected estimates have no objection or appeal rights (however a customer can object to the particulars of the assessment).

Explain to the customer the reason why the estimate is invalid. The customer may elect to lodge a new estimate at any time. Check the validity rules again if a new estimate they lodge a new estimate. The earliest start date of a new estimate is from the date of the new election.

To reject the invalid estimate:

• save the estimate with a status of Recorded
• Cuba will not accept an invalid estimate and will:
• automatically delete the Recorded entry, and
• issue a letter advising the estimate did not meet the validity criteria
• Go to Step 11

The estimate is incomplete if the following information is not provided:

• The estimated ATI income amount, including the taxable and other component income amounts
• The YTD ATI, if the estimate is for less than the full financial year

If the estimate is incomplete the election is treated as invalid and is considered not to have been made. There are no objection or appeal rights against rejecting an estimate that is incomplete. The customer can lodge a new estimate at any time. The earliest commencement date of a new estimate will be from the start date of the new election.

Finalise the estimate as incomplete:

• Change the Estimate Status to DISALLOWED
• Select an End Reason of:
• USER DISALLOWED if Estimated ATI is not provided
• YTD NOT PROVIDED if YTD ATI is not provided
• Document the decision in Cuba
• Select Save

This will generate the ME1-1 letter to explain why their estimate election was rejected.

See Table 8.

Service Officers must refuse an estimate if satisfied the customers’:

• actual taxable income and other component amounts (their ATI for the estimate period is likely to be higher than the amount estimated, or
• actual YTD ATI is likely to be lower than the amount provided. A customer's poor estimate history alone is not reason to refuse an estimate

A customer's poor estimate history alone is not reason to refuse an estimate.

To refuse the estimate:

• change the Estimate Status to DISALLOWED
• select an End Reason of:
• USER DISALLOWED if satisfied that the actual income will be higher than the estimated ATI
• YTD IS LOWER if satisfied the actual YTD will be lower than the YTD ATI provided by the customer
• select Save to generate the ME1-1 letter explaining why the estimate election was refused

See Table 8.

Child Support can accept an estimate if satisfied it is valid, complete and correct. If approval is required (such as an estimate with a retrospective start date), route the Pending Estimate Income intray to a SSO to authorise the decision.

Before accepting an estimate, check that:

• the estimate dates are correctly recorded
• the estimate is applied to all relevant cases
• legislative reference used to make the decision is documented
• all relevant information is recorded, including:
• income by period where appropriate
• a reason for the estimate election
• a YTD income is included, where required
• a reason is documented if the YTD is zero
• consideration of estimate history and requests for proof of income where needed

To accept an estimate in Cuba:

• In the Estimate Income window
• Update the Estimate status from Pended to Recorded

Use the Estimate documentation macro to document the:

• estimate details
• identified issues
• customer discussion/s
• all information and evidence obtained
• estimate decision, and
• outcomes

Check if any of the following apply:

• Multiple case numbers, including reverse and non-parent carer cases, go to Step 3
• Reverse case, the estimate has created or restarted a reverse case, go to Step 4
• Non-parent carer and/or mixed assessment case, go to Step 5
• Manual intervention required to align CS Periods and/or estimates, go to Step 6
• Fixed annual rate (FAR) or minimum annual rate (MAR) as a result of accepting estimate, go to Step 13
• Existing fixed annual rate (FAR) not to apply decision in place, go to Step 14
• Post Separation Income (PSI) exists or changes during estimate period, go to Step 15
• Overseas estimate has changed the liability, go to Step 16

Generally, initial estimates and any amended estimate/s must apply to all applicable cases including:

• multiple separate cases
• reverse cases and /or
• non-parent carer cases

The exceptions are if legislation or policy prevents matching the estimates. E.g.,

• An Income Amount Order (IAO) does not apply to all cases
• If different last relevant years of incomes (LRYI) affect an estimate’s validity differently across cases
• A new separate case for children of a different relationship has started during the same financial year as an existing estimate on a separate case

If a customer has indicated they do not want an estimate to apply to one or more cases, contact the customer to ask:

• Why they do not want the estimate to apply to that case?
• If they have fears for their safety if the estimate is applied to that case? Seek SSO/PSM support and see Family and domestic violence(link) to offer appropriate options to the customer

If the estimating parent has more than one active case number, due to:

• multiple separate cases, for children of different relationships, go to Step 3
• the same two parents in reverse payer/payee roles, go to Step 4
• non-parent carer/s for any of their children, go to Step 5

In this procedure, a ‘separate case’ means the customer has more than one active case but no ‘Claimed For’ children from that same relationship.

The customer’s estimates should be applied to all their active cases. The only exception is if legislation or policy prevents matching the estimates. E.g.,

• An Income Amount Order (IAO) that does not apply to all cases. For example, a COA decision that sets the rate on one case but not on other cases. If this occurs, the estimate should be applied to any cases not set by the IAO. For more information on Income Amount Orders, see Child Support Guide 1.1.I.10 Income amount orders
• Estimate meets the 85% validity rule on one case but not on another. Separate cases may correctly have different Child Support Periods (CS Periods) and use different last relevant years of income (LRYI). If this occurs, the estimate may meet the 85% validity rule on one case but not on another. Check with an SSO.
• Customer has an active estimate that stats a new separate case for child/ren of a different relationship during the financial year. If this occurs:
• contact the estimating customer to check if the existing estimate is still accurate. See Contact with child support customers
• add the new estimate to the new case as an initial estimate. The YTD period will be different to the earlier case. Re-calculate the YTD income for the new case from the start date of the new estimate. If the new case has a different LRYI, it may not meet the 85% validity rule
• add an Amended Estimate to the existing case/s if required to reflect any changes. Discuss this with the customer and confirm details
• tell the customer the incomes used in each of their separate cases is different. This can occur if the estimated incomes annualise differently in the different estimate periods for each case. If the new case has a different LRYI to the existing case/s, the estimate may be valid in some cases but not others

Are there any other active reverse cases for the estimating customer?

• Yes, go to Step 4
• No, and there is a non-parent carer case, go to Step 5

All case numbers for children of the same 2 parents are part of one whole child support case.

A parent’s income should generally match across all the case numbers that make up one whole case.

If there is no confirmed legislative or policy exception, and a reverse case is active, or will be active, for any part of a financial year:

• reflect all original and amended estimates for the parent in that year in both reverse case numbers
• make sure the estimate start date, YTD amount and estimated amount exactly match in each reverse case. This applies even if one reverse case number started and/or ended on a different date to the other reverse case number

If not matching in all relevant case numbers, the estimates will not reconcile correctly and may cause unfair outcomes for the parents and children.

Are there any non-parent carer case numbers for children of the estimating customer?

• Yes, go to Step 5
• No, go to Step 6

If there is a mixed assessment of any kind, run eligibility manually, until the estimate is reflected across all cases. Note: eligibility may need to be run more than once.

The remainder of this step refers to case numbers where the estimating parent has the role of payer, and the non-parent carer is the payee. The other parent of the child/ren may also have a case number with the non-parent carer.

Estimates for a parent who is a payer in a non-parent case should be reflected in all case numbers for children of the same 2 parents unless legislation or policy prevents matching the estimates.

Intervention may be required where non-parent carer cases exist as:

• each parent has a case to pay the non-parent carer
• where there are two non-parent carers who both have case numbers with one or both parents
• cases where step-children and children of the relationship have a status of ‘claimed for’

Viewing all non-parent carer cases

Some non-parent carer case numbers can only be viewed via the other parent’s record and checking the Involvement List window.

Seek SSO support if unsure about identifying or managing non-parent carer cases.

Applying the estimate to non-parent cases

To make sure the estimated income in correctly calculating the entitlement for the non-parent carer, after accepting the estimate, manually run and save eligibility.

This may need to be done more than once to correctly use the estimate in all relevant assessments.

After saving eligibility, check the assessment is using the correct incomes.

• Go to the Case Liability Rates window for each non-parent carer case number/s
• The estimating parent’s estimated income should show under the heading:
• Payer Details if they are payer in that case number or
• Other Liable Parent details in the case number where the other parent is the payer

Seek SSO support if the estimated income is not showing as expected.

.

Check reverse and relevant non-parent carer cases for:

• different or missing CS Periods
• missing estimates
• estimates for different amounts
• different estimates start dates

Check eligibility for non-estimate related errors or liability changes. Resolve before starting any reverse case estimate alignment.

Are there any non-estimate related eligibility issues?

• Yes. resolve using the Eligibility Cuba Process Help. Seek help from an SSO if needed
• No, go to Step 7

As mentioned above, all related cases need to have CS Periods that align throughout the financial year of the estimate.

Check if the CS Periods match for the reverse/relevant non-parent carer case numbers, in all periods affected by estimates.

If CS Periods are different or missing, error messages may occur. These prevent the estimates applying correctly to all relevant cases. Alignment issues usually relate to:

• a CS Period being cut short because one case ended when the reverse/relevant non-parent carer case started
• a missing a CS Period that is needed for the estimate period. This usually relates to a CS Period that started before the start date of the reverse/non-parent carer role, or
• an incorrect a CS Period. E.g., started with an incorrect date on one of the reverse cases

Have any different or missing CS Periods been identified?

• Yes, go to Step 8
• No, go to Step 10

Is CS Period alignment required for more than the current CS Period and/or a CS Period about to start?

• Yes:
• Service Officers, complete the Correcting errors macro and escalate to an SSO to action. For help, see Correcting a complex Child Support error
• SSOs, go to Step 9 to align all relevant CS Periods
• No, go to Step 10

This process is different to aligning CS Periods in other circumstances.

Open the Child Support Period window for each reverse case.

Take a screenshot of all the CS Periods that relate to the estimate period on each reverse case.

Review the screenshots to find any CS Periods that:

• have been cut short
• are new
• are missing, or
• are different on the reverse cases

To add or delete CS Periods, see Child Support Period Management Cuba Process Help.

After each change is made to a CS Period, a message displays stating that eligibility must be saved. Cancelled the message without saving eligibility. If eligibility is saved at this point, some of the CS Periods may be removed that have just been updated.

CS Period cut short on an ended reverse case

The CS Period end date is before or during the estimate period because one of the reverse cases ended:

• Delete that CS Period
• Add a new CS Period with the same start date but with a later end date to match the later CS Period end date of the active reverse case
• Add any subsequent/new CS Periods
• Both cases should now display the same CS Periods, from the one when the estimate started and up to, and including the latest CS Period

Case with a missing CS Period

• Delete all CS Periods back to a date that allows the missing CS Period to be added
• Add a new CS Period that aligns with the start and end date of the reverse case CS Period (covering the start date of the estimate)
• Add the deleted CS Periods back, including any subsequent/new CS Periods
• Both cases should now display the same CS Periods, from the one when the estimate started and up to, and including the latest CS Period

Different CS Period on the reverse case CS Period

• Delete all CS Periods back to a date that allows the incorrect CS Period to be deleted
• Add a corrected CS Period
• Add back any other correct CS Periods that came after the CS Period corrected
• Both cases should now display the same CS Periods, from the one when the estimate started, and up to, and including the latest CS Period

Have all estimated incomes correctly applied to all relevant Cuba case number?

• Yes, go to Step 10
• No. If estimated incomes need to be added or corrected after any required updates to the CS Periods, go to Step 10

Do estimates need to be added/corrected for any period earlier than today?

• Yes:
• Service Officers, complete the Correcting errors macro and escalate to an SSO to action. For help, see Correcting a complex Child Support error. Procedure ends here
• SSOs, go to Step 11
• No, go to Step 11

Identify all the estimate entries not applied or that do not exactly match in each of the reverse and relevant non-parent carer case numbers for all estimates. This includes CLI amended estimates and CSA amended estimates.

For each entry:

• take screenshots of the Estimate Income window and Estimate Components Details dialogue box
• read any attached notepads to confirm which of the reverse cases has the correct start date and estimated amount
• take copies of the original notepad from each estimate and amended estimate. Paste these to the records applied on the reverse case, in addition to the Correcting Errors submission notepad

Some estimates on a reverse case may not be missing but recorded incorrectly. The start date and the income amount must match exactly.

• Delete the incorrectly recorded estimates
• Open a new Estimate Income window to key the missing estimate/s or re-key an estimate that needed correction. Make sure the dates, details and amounts of each estimate/amended estimate on the reverse / relevant non-parent carer cases exactly match
• even if a reverse / relevant non-parent carer case starts and/or ends on a different date, the estimate details, including the start date of the estimate, must still exactly match on each case. The child support system will only allow this if the CS Periods are aligned before recording the estimates. Note: each time an estimate is recorded, the CS Periods must be realigned. This is because Cuba automatically saves eligibility and removes the CS Periods added when each estimate is recorded
• In each estimate notepad, add:
• the text ‘As per the Error correction submission notepad, this estimate is being keyed to align estimate records on reverse cases. The original estimate notepad is copied below'
• a copy of the relevant estimate notepad from the original case, and the correcting errors submission

• An estimate entry for dates after a reverse case ended will have a status of Recorded. This is correct as that estimate entry would not be directly used in the assessment for that case number. However, that entry will still be used to make sure a correct reconciliation result, for other estimates in that same financial year
• An estimate entry which applies to a period the case was active, may show as Recorded.
• Run Eligibility and Save so the estimate is applied to the assessment
• This will update the estimate status to Currently Used
• An estimate entry added to a reverse case with a start date before that case role started will have a status of Currently Used. If a subsequent estimate is added that also has a start date before the case role started:
• the status of the first estimate will update to Revoked, and
• the subsequent estimate will have a status of Currently Used

Check non-parent carer case numbers

If an accepted estimate is not reflected correctly in all relevant case numbers, manually run and save eligibility via each case number. If this does not resolve the issue, seek SSO/PSM support.

Repeat this process until all estimates including most recent have been aligned.

For more information on managing other reverse case issues, see Managing reverse child support cases.

Accepting an estimate, results in a FAR or MAR.

If the estimate results in a FAR, tell the customer they can apply for FAR not to apply if they have a genuinely low income.

If the customer is the payee in a case or has reverse roles, they can still apply for the FAR not to apply to them in the assessment calculations. This may increase their entitlement.

See Fixed annual rate not to apply applications.

If the assessment results in a MAR, tell the customer they can apply to reduce the assessment to nil if their income is below the MAR.

See Minimum annual rate to nil – Reducing child support assessments

Where there is a previously accepted FAR not to apply, consider if a post decision amendment is required. E.g.:

• On 1 February 2024 a customer lodges a subsequent estimate annualising to $40,000
• The Child Support Period window shows an accepted FAR not to apply with an end date 31 August 2024. When the estimate period ends 30 June 2024, the assessment is based on the 2022/23 financial year ATI of $17,000 until the end of the end of the child support period 31 August 2024
• A discussion with the customer identifies they no longer meet the requirements for FAR not to apply, and an amendment is made

To amend an accepted FAR not to apply if circumstances change, see Fixed annual rate not to apply applications.

Review the existing PSI decisions.

A new PSI decision may be needed for the estimate period if the estimated income includes income that qualifies as post separation income.

See Post separation income for Child Support parents.

New Zealand residents

• Create a NZ IN REQ ACERT FROM NZIR intray
• Route the intray to MC S003 Cent Auth Tm 1 – NZ Info Request
• Add a notepad to the intray requesting an amended certificate be sent to the overseas authority

Residents of all other countries

• Create an INTERNATIONAL STHOLD FOLLOWUP intray
• Route the intray to MC S003 Cent Auth TM1 – Z Overseas Future Work
• Add a notepad to the intray requesting notification of an amendment be sent to the overseas authority

After creating and routing one of the above intrays, make a note on the Estimate window stating an intray has been routed to the International team to request an Amended Certificate.

Customers must be notified of the outcome of their estimate election. How the customer is notified depends on the outcome of the estimate. If the estimate is:

• invalid estimate, go to Step 2
• incomplete estimate, go to Step 3
• refused estimate, go to Step 4
• accepted estimate, go to Step 5

An estimate may be deemed invalid during the initial validity checks or after keying the details into Cuba. Select from the below.

Cuba will not automatically issue a letter to the customer advising them of the reasons why the estimate is invalid.

If the customer is lodging the estimate:

• phone, explain to them during the phone call:
• The estimate is invalid and the reasons why
• They have no objection rights
• electronically or in writing:
• Attempt to contact the customer by phone to explain their estimate is invalid and the reasons why. Advise the customer they do not have objection rights
• If telephone contact is unsuccessful, send a unique letter explaining why the estimate was invalid and rejected and they do not have objection rights.

Contact the customer by phone to explain the estimate is invalid. If telephone contact is unsuccessful, send a unique letter explaining why the estimate was invalid and rejected.

Cuba will not automatically issue a letter for incomplete estimates.

Make every effort to contact the customer to clarify missing details before rejecting the estimate as incomplete.

Contact attempts must include issuing an MX1-1 - Request for Client to contact CSA letter, For the text to include in the letter, see Table 6 > Item 3 > Estimate will be rejected in Letter Cuba Process Help.

Cuba will automatically generate the letter ME1-1 – Explanation why the estimate rejected.

Cuba will automatically generate the following letters:

• ME2-1 – Advise Payee estimate lodged and effect on assessment
• ME2-2 – Advise Payer estimate lodged and effect on assessment

A customer may elect a new YTD ATI before their estimate is reconciled.

Has the estimate been reconciled already?

• Yes, in some circumstances, a YTD can be updated by Child Support after the estimate has been reconciled. This may occur because a customer’s actual YTD ATI was higher than originally advised and Child Support considers an update is appropriate. To request an update to a reconciled estimate YTD, see Customer Referral Guidelines > Estimate Reconciliations. A specialist estimate Service Officer will check the request see Customer disputes child support estimate reconciliation
• No, go to Step 2

If a customer elects a new YTD before the estimate is reconciled, check the details of the new YTD. Contact the customer to confirm the details.

If satisfied with the accuracy of the customer's election of a new YTD ATI, go to Step 3.

If unsatisfied with the accuracy of the:

• new YTD ATI, ask the customer to provide evidence (e.g., pay slips, employer letter, payroll data, profit and loss statements) within 14 days to support their stated YTD amount. If the evidence:
• is received within 14 days and is satisfactory, go to Step 3
• is not received within 14 days or is unsatisfactory, consider whether the new YTD has been overstated. If satisfied that the new YTD has been overstated and is more than the likely total of the actual income components in the YTD period, go to Step 4
• YTD provided by the customer but have been able to determine a new accurate YTD during the process, contact the customer. If the customer:
• confirms all details of the proposed YTD update and agrees to elect this as their new YTD, go to Step 3
• does not confirm all details of the proposed YTD update, go to Step 5

Before processing

Service Officers must note the details of the original YTD before updating it in Cuba. Once updated in Cuba, the details of the income in a previous YTD ATI are only accessible through the letters. Record the initial YTD ATI and new YTD ATI details in the Estimate Income window notepad.

Processing for accepting customer election of new YTD

Update the YTD ATI using Table 1 in Estimates Cuba Process Help.

In the Estimate Income window > YTD ellipsis > Year To Date Component Details box > Income Calculator, update the YTD.

The system displays a message ‘Is this change initiated by Child Support?’ Select No to generate the correct YTD ATI updated letter that does not include the objection paragraph. The next time a Service Officer navigates to the YTD Calculator, the Child Support initiated check box will be unticked.

Document the information provided by the customer and/or evidence supplied and include:

• Subject: New YTD election
• Text: [Customer name] elected a new YTD amount
• Existing YTD: [key the current income details, deductions etc]
• New YTD: [key updated or additional income detail, deductions, periods of payment etc]
• Reference: Section 63AC Child Support (Assessment) Act 1989

Tell the customer their YTD election has been accepted, and they can update their YTD ATI any time before the estimate is reconciled.

Go to Step 6.

Child Support may refuse a customer election to update a YTD if it is likely that the actual YTD will be more than the elected YTD. Child Support will attempt to determine a more accurate YTD from the information and documents available, before refusing a customer election.

Has Child Support been able to determine an accurate YTD?

• Yes, go to Step 5
• No, the YTD will remain as it was before the customer election to update it.
• Contact the customer by phone to advise of the outcome, and
• Issue a unique letter advising of the decision to refuse the customer’s election of a new YTD income amount
• Use text below to document the refusal on the Estimate Income notepad:
  Subject: New YTD election
  Text: [Customer name] elected a new YTD amount
  Existing YTD: [key the current income details, deductions etc]
  New YTD: [key updated or additional income detail, deductions, periods of payment etc]
  A determination has been made that the actual YTD income is likely to be higher than the new elected YTD income. The customer election to update the YTD has therefore been refused. No change has been made to the existing YTD
  Reasons for decision: [key and include all information and documents that have been considered, including customer contact details]
  Reference: Section 63AD Child Support (Assessment) Act 1989
• Procedure ends here

Child Support may have been able to determine an accurate YTD amount from the information and documents available during this process. Contact attempts must have been made in accordance with Contact with a child support customer before processing the proposed update.

Note: this process only applies to YTD updates before the estimate is reconciled. If a YTD update should potentially occur for a reconciled estimate, see Customer Referral Guidelines > Estimate Reconciliations. A specialist estimate Service Officer will check the request in accordance with Customer disputes child support estimate reconciliation.

Process a Service Officer YTD determination

Before processing and updating Cuba, in the Estimate Income window notepad, document the details of the:

• initial YTD ATI, and
• new YTD ATI

Once updated in Cuba, the details of the income in a previous YTD ATI are only available in customer letters.

Update the YTD ATI using Table 1 in Estimates Cuba Process Help.

Document the information used to make the decision using the text below:
Subject: YTD Amendment
Text: [key and include all details of information obtained, customer discussions and reasons for decision]
Existing YTD: [key the current income details, deductions etc]
New YTD: [key updated or additional income detail, deductions, periods of payment etc]
Reference: Section 63AE Child Support (Assessment) Act 1989

A message will display if the new YTD ATI provided by the customer is zero or greater than the expected YTD by 10% or more.

The 'expected YTD' is calculated by pro-rating the LRYI for the days between the start of the financial year and the day before the estimate start date.

If these warning messages display, check the details keyed, correctly reflect the decision that has just been made.

Check that the correct letter has issued to the estimating customer.

• If the YTD has been updated, an ME7-1 letter should automatically issue to estimating parent. The letter text will be different depending on whether the new YTD was determined by the customer or Child Support
• No letters should generate to the other customer. They should not receive any details about updates to the YTD of the estimating customer