Child support estimates 277-07040000

For verbal estimate elections (lodged by phone or in person), use this procedure with the Estimate documentation macro to take and clarify estimate details.

For electronic or written estimate elections (lodged via myGov, Express Plus Child Support mobile app or estimate election form):

• use this procedure with the Estimate documentation macro to check estimate details
• document all issues to clarify with the customer in the Estimate Income window

Note: if a customer only wants to update their YTD income from a previously accepted estimate, see Table 7.

If one of the following intrays shows:

• PENDING ESTIMATED INCOME (for initial estimates) or PENDING CLI AMENDED EST INCOME (for subsequent estimates), the online/verbally lodged estimate is pending further information. Go to Step 3
• CS ONLINE PENDING INITIAL EST or CS ONLINE PENDING SUB EST, the estimate has been lodged online and the system is unable to pend. Check the Communication window for details of the estimate. There may be multiple entries to check. Go to Step 4
• ESTIMATE CORRESPONDENCE RCVD, a paper Estimate form has been received. Go to Step 4
• PENDING CSA AMENDED EST INCOME, see Child Support estimates review (post 1 July 2010). Procedure ends here

Note: an automatic notepad created during the online estimate process will have a system User ID rather than a Service Officer ID.

Check the customer’s Client Income window and if it displays a Pended Estimate:

• highlight the pended entry and go to the Estimate Income window to view the details
• check relevant notepads on the pended entry and/or in the Communication window to determine next action

Note: an automatic notepad created during the online estimate process will have a system User ID rather than a Service Officer ID. Service Officers need to check Pended estimates

If the notepads indicate that the pended estimate:

• has not yet been checked for validity and accuracy, go to Step 4
• has been checked, and:
• needs clarification, see Table 3
• was awaiting information from the customer that has now been provided, see Table 4 to pend the estimate with new information
• was awaiting information from the customer which has not been provided by the due date, see Table 4 to pend the estimate with the existing details
• there are system issues identified, check that appropriate referrals to an SSO have been made. If not refer to an SSO

Check the customer’s address and residency details to confirm if they are overseas residents.

To check residency:

• In the Customer window > Go menu > Details
• From Individual Customer Details window > Go menu > Residency
• In the Client Residency window, check for any current overseas residency

For overseas residents with an Australian child support assessment, the same estimate rules apply. However overseas customers have 60 days to notify Child Support of an event affecting the accuracy of their estimate (domestic customers have 14 days).

Record an overseas estimate on the child support system as OS EST INCOME. Further actions required for overseas estimates are explained later in this procedure (Table 2, Step 3).

If it appears that the customer may have changed residency from what is currently in the system, see Residency decisions for Child Support customers. Seek help from an SSO if required.

Check the customer’s record to ensure the estimate will be a valid option:

• Estimate elections must be 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 The Child Support Guide 6.3.6: Authorised representatives
• The estimate must apply to 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, assist customer with Stage 1 – low-income non-enforcement (LINE) period
• There must not be an Income Amount Order (IAO) in force relating to the estimating parent on the start day of the election or for any part of the remainder of the financial year. An IAO is where a Child Support Agreement, Change of Assessment (COA) decision or Court Order varies the assessment by setting:
• annual rate of child support payable (setting the annual rate/a periodic amount), or
• customer’s adjusted taxable income or child support income
• Note: if a customer cannot lodge an estimate as an IAO is in force, consider if a COA application may be appropriate and check for an unemployment clause in an agreement or a Court Order that could be invoked
• 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. However, if it becomes apparent during these early checks that the estimates may not meet this rule, manage the customer expectations about the estimate

Does the estimate appear to be valid?

• Yes (or not yet confirmed), go to Step 6. The final determination of validity will be made after the estimate election is fully confirmed and processed
• No, the estimate is clearly invalid. For:
• a verbal estimate election, tell the customer the estimate may be invalid. See Table 4 to key the estimate details. Once the system confirms the estimate is invalid, explain the reason and any other available options to the customer
• an online/written estimate election, see Table 3 to discuss validity issues
• an estimate not lodged by the customer (or someone with legal authority to act for the customer), do not record or pend an estimate. Tell the person requesting the estimate that no further action can be taken unless the customer or person with legal authority to act contacts. Note the request in the Communication window. Procedure ends here

The estimate must apply to all applicable cases (including multiple and reverse cases).

Reverse cases have the same 2 parents in reverse roles. Although reverse cases have separate case numbers, they are legally part of the same child support case.

If a reverse case is active or will be active for any part of a financial year, all estimates for a customer in that year must be reflected in both reverse cases. The estimate dates and amounts must exactly match. If not, the estimates will not reconcile correctly and may cause unfair outcomes for one or both parents

Manual intervention may be required if the reverse cases have child support periods or incomes that do not match.

Does the customer have a reverse case?

• Yes, see Table 6 and action specific checks
• No, see Table 2

When a customer lodges:

• a verbal estimate, all estimate checks can normally be completed in real time
• an online or written estimate, check estimate details before considering customer contact. Make notes about any estimate details to clarify. To determine whether customer contact is required, see Table 3

Note: Check the Communication Window for any estimate details that are not yet pended in the Client Income Window. There may be one or more Communication entries with estimate details on the notepads

Start Date

The first estimate in a financial year can start from:

• 1 July (if notified on or before 1 July)
• the first date of a new Child Support Period (CS Period) if notified on/before that date. For example, 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 of notification. For example, 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 satisfies an estimate deeming policy criteria to backdate the estimate start date. Note: SSO approval is not required when applying a deeming policy. Clearly document to support the decision

End Date

All estimates of income 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 (this is explained in Table 4, Step 6).

Does the estimate contain any overseas income?

• Yes, go to Step 3
• No, go to Step 4

No matter what the financial year of an overseas country is, overseas estimated income must be provided for the Australian financial year from 1 July to 30 June.

If there is overseas income included in the estimate, check if the customer:

• has an Australian administrative assessment in place. If not, the estimate will be made invalid when processed
• is currently an Australian resident or if they are an overseas resident. This will affect how the overseas income is recorded

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

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 the same average exchange rate for the relevant financial year of the country as was used in calculating the original taxable income
• use the 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 for the required exchange rate.

Target Foreign Income in the estimate

Convert the income manually using the exchange rate available on 1 July of the relevant Australian financial year and round off to the nearest whole dollar. To request the required exchange rate, email the International Disbursement Team

Overseas residents

When recording an estimate for an overseas resident in Cuba, the Type of estimate selected should be OS EST INCOME. The estimate should include all income that is taxable under the legislation of the relevant overseas country or countries. Include any relevant Australian Adjusted Taxable Income (ATI).

In specific circumstances, a Receiving Parent who is resident in a non-reciprocating jurisdiction may still be eligible for a child support assessment. If a receiving parent is a resident of a non-reciprocating jurisdiction and is lodging an estimate, record any income from that country as Target Foreign Income.

Australian residents

If an Australian resident has an overseas income source, include this in their estimate as Target Foreign Income. Ensure it meets the Child Support income type definition.

Evidence required for overseas estimates

Ask the estimating customer for evidence of their overseas income.

Note: evidence of New Zealand income is not normally required as this can be requested from New Zealand Inland Revenue. Only Service Support Officers (SSOs) can accept an estimate based on overseas income without evidence.

Evidence must be for income in the Australian financial year from 1 July to 30 June such as:

• a tax assessment copy issued by the relevant country’s taxation authority
• an employment termination certificate
• a letter from the employer with YTD income
• certification from employers such as a payment summary equivalent or payslips
• a relevant government authority statement showing payments made to the customer, or
• documentation from an accountant or tax agent

Supplying evidence is not a legislative requirement and is not a sole reason to refuse the estimate. However, if the parent has not supplied evidence, Child Support may refuse the estimate if satisfied the actual income is likely to be more.

Request Amended Certificate

When an estimate is taken for an international case, notification must be sent to the overseas authority so they are aware of the change made to the assessment. To request an amended certificate for:

• New Zealand:
• 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 estimate requesting an amended certificate stating intray was created and routed
• for 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 estimate requesting notification of the amendment be sent to the overseas authority and stating the intray was created and routed

Ask the customer why their income has changed to assist in determining estimate accuracy and future conversations. Reasons for:

• an initial estimate may include (but are not limited to):
• loss of job
• change to a lower paid job
• reduced hours
• part time hours
• unavailability of overtime
• commencement or changes of Parental Leave Payments
• inflated ATI in assessment due to one-off event that occurred in that relevant year (such as redundancy/compensation payout)
• a subsequent estimate may include (but are not limited to):
• any of the reasons above for a reduction in income,
• a promotion,
• increased working hours,
• increased overtime or
• a new job with higher income
• a lump sum payment

Note: if a reason is not provided, request a reason for the estimate. If a reason is still not provided and the estimate is valid and accurate in all other aspects, do not refuse the estimate. A decision will need to be made later in this procedure whether the income is likely to be higher than the estimated income.

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 will be 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. It may result in 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 The Child Support Guide 2.4.4.10: Adjusted taxable 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 or DVA payments
• any taxable termination payments received
• any taxable superannuation withdrawals

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

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 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 ensure 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 statement of benefit from Centrelink (if this information is not available on the External Information window in Cuba), or
• 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. For example, 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 7
• 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 The Child Support Guide 2.4.4.10: Adjusted taxable 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 The Child Support Guide 2.5.1: Income estimates for a year of 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, encourage. Help customers who have an online account to download and set up the Express Plus mobile app

If the customer is not lodging a subsequent estimate, go to Step 9.

Customers can lodge a subsequent 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 if the estimate:
• has not been reconciled, and
• election is higher than the last estimate

Subsequent estimate date of effect

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. For example, 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. For example, if the paying parent’s estimate changes their liability from a fixed annual rate (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 estimate

Seek advice from a Specialised Assessment Team Program Support Manager if a delay between the date of event and date of notification may have disadvantaged the customer where:

• the subsequent estimate is lower than the preceding estimate, and
• the income earned between the event date and notification date is different to the regular income after the date of election

For example, customer receives a lump sum payment after the event date but before the notification date and will receive Centrelink or salary income after the election date.

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

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

When first included in an estimate, lump sum and specific period payments are automatically applied evenly across all the days in the remaining estimate period, up to 30 June. The whole amount will be included in the total estimated income expected over a year. However, if a subsequent customer or Child Support amended estimate is accepted from a later date, a portion of the previous lump sum or specific period 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. Use ‘Save As’ workaround to download/use calculator.
• No, go to Step 9

Review the customer’s circumstances and the estimate submitted to assess if lodging an estimate is suitable for the customer. This is important if the customer's income varies during the financial year.

Other options could be more suitable for the customer’s circumstances, such as:

• not lodging an estimate, or
• applying for:
• post separation income (PSI) to be excluded from the assessment in certain circumstances. See Post separation income for Child Support parents
• a Fixed Annual Rate (FAR) not to apply. See Fixed annual rate not to apply applications
• a Minimum Rate (MR) not to apply. See Minimum Annual Rate to nil – Reducing Child Support assessments, or
• a Change of Assessment (COA) in special circumstances. See Change of assessment in special circumstances

Consider the potential impacts of lodging an estimate and the process (of reviews and reconciliation), especially for cases that are ending. Lodging an estimate may result in an outcome that is different to what the customer expected. For example, the assessment may become higher than a PP expected or lower than an RP expected.

When checking for suitability, if the customer indicates:

• they are not working, check:
• their industry for regular working patterns, such as those that periodically close (such as meat workers) or are seasonal (such as shearers, fruit picking)
• how confident they are of finding other work soon
• if a work injury prevents them from working
• they have reduced overtime or work hours, check if the:
• earnings will be significantly less this year
• reduced overtime will be in place until the end of the financial year
• change to normal working hours is permanent or long term
• increased working hours are likely to be in the short term only
• they receive or may apply for Centrelink benefits, check if the customer is:
• confident of finding other work soon
• likely to increase their working hours in the short term
• their assessment is based on a higher than usual ATI (for example, due to one-off payment), check:
• capital gains in last tax return or eligible termination payment in last tax return
• be aware the other party may apply for a COA to have this one-off payment taken into consideration for the assessment. Explain this to the customer
• if a lower tax return for the next year will be lodged soon
• they have started self-employment, check:
• if the customer has secured contracts to support their business
• how the customer will pay themselves
• how the customer has calculated their income. Note: be aware the other party may apply for a COA to have business income, property and financial resources taken into consideration for the assessment. Explain this to the customer (or for non-verbal estimate elections, make a note)
• they have reduced self-employment income, check:
• how the customer has calculated their income
• how soon they expect business to financially improve

An estimate may not be the most suitable option where:

• 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

• a new Child Support Period (CS Period) will start. For example, 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 Last Relevant Year of Income (LYRI) until the end of the estimate period
• contract or seasonal work result 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 new 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 the lump sum is received
• the child support case ends before 30 June. Customers may prefer to avoid estimate reconciliation and potential retrospective changes after their case ends as outlined in Table 2, Step 2
• there is a history of multiple/inaccurate estimates. Underestimating can create future debt(s) and penalties may also apply. Check the Client Benefits, Income Details and External Information windows, Cuba record and Australian Taxation Office (ATO) systems (for employment declarations). Check, clarify and if required, request evidence to support the estimate accuracy

Is any further information, clarification or evidence required?

• Yes, for a:
• verbal estimate, explain what information, clarification or evidence is required and when it is due. Document what has been requested with due dates in the Estimate Income notepad (or Communication window if the estimate cannot be pended yet). Once the due date has passed, see Table 4. Note: if an interaction has ended before all the required information is requested, see Table 3 to re-contact the customer
• online or written estimate, document what information, clarification or evidence is required on the Estimate Income notepad (or Communication window if the estimate cannot be pended yet). See Table 3 to contact the customer
• No. See Table 3 to check if customer contact is required

Select the estimate the customer is lodging.

Initial estimate in the financial year, lodged online or in writing + Read more ...

Subsequent estimates in the financial year, lodged online or in writing + Read more ...

Before contacting the customer to confirm their estimate election, prepare for the call:

• review all notes for issues identified in Table 1, Table 2 and Table 6 of this procedure
• document all collated notes and issues related to the estimate election in the Client Income window notepad as this will form the basis of the discussion, and
• list questions to ask the customer so they are addressed separately

For more information on discussing estimates with customers, see Conversation guidelines for Child Support estimates

Attempt to contact the customer by sending a Pre-call SMS and make one phone contact attempt.

Was the call successful?

• Yes, discuss, resolve and document issues identified while completing the checks
• No, send either a:
• pre-approved SMS ‘Estimate in Progress’ (S011)
• Request for Client Contact CSA (MX-1) letter if more specific text is required. Use the most appropriate pre-approved CAL text option. Select from ‘Estimate discussion required’, ‘Estimate discussion required – multiple estimates’, ‘Estimate election incomplete or incorrect’ or ‘Estimate will be rejected’
• include a suitable due date, check inbound mail handling time

When the requested information is received, return to this procedure and check the estimate is valid and meets lodgement rules. If the required information is not received by the due date and there is no customer contact about the estimate, make a decision on the information available. See Table 4

See Table 4 when:

• all identified issues have been resolved or no further clarification is available
• all contact attempts are unsuccessful
• all requested information has not been received by the due date, or
• estimates are not yet Pended or for estimates requiring updates to Pended information

For correctly Pended estimates, see Table 5 to finalise the estimate. Note: being unable to contact the customer is not, in itself, a reason to refuse an estimate. If the estimate is complete and valid, a decision must still be made as to whether the estimate meets criteria to accept or refuse.

Service Officers in:

• New Customers only:
• Key the customer’s initial estimate in Pluto
• After keying the estimate election in Pluto, return to this procedure and see Table 5, Step 1
• all other areas, key the estimate in Cuba. Go to Step 2

When keying the estimate election in Cuba, follow the instructions in Table 1 in Estimates Cuba Process Help. Consider the following factors:

• Notification Date, key the date the customer makes their income election. The date auto populates
• Estimate Type, select:
• ESTIMATE INCOME for Australian resident customers - including those who include target foreign income in their estimate or YTD amounts. Convert target foreign income to Australian currency before keying into the calculator, or
• OS EST INCOME for customers who are residents of reciprocating jurisdictions, or receiving parents who are residents of non-reciprocating jurisdictions where the claimed for child/ren of the case are still eligible
• Estimate Selection List, select the cases as elected:
• Cuba will display the customer cases for the appropriate financial year
• If the customer elects to estimate their income before the new child support period (CS Period) starts, update the Estimate From Date to the first day of the new CS Period
• Effective (Start) Date is the date the estimate affects the assessment. This date auto-populates. For an initial estimate, this is usually the date the election was made. However, if the customer elects to estimate their year of income before the financial year starts or before a new CS Period starts, key the start date as the first day of that financial year or CS Period:
• The effective start date for a subsequent estimate depends on the change in income. It may be either the Notification Date or the Date of Event
• For overseas customers, estimates and Year To Date (YTD) incomes lodged by customers in a reciprocating jurisdiction apply to an Australian financial year (1 July to 30 June)
• Date of Event is the date the customer's income changed and is for subsequent elections only. The date auto-populates with the Notification Date or 1 July if the parent elects to estimate their year of income before that financial year starts. Overseas customers have 60 days to notify child support of an event after lodging their estimate (domestic customers have 14 days)
• Estimate Details group box, select the appropriate Reason for estimate for an initial and subsequent estimate
• Estimate Status, Service Officers who do not have the delegation to approve the estimate must select Pend and document all available income details before saving the estimate as pended

Does the estimate start on 1 July?

• Yes, YTD income is not required. Go to Step 4
• No, YTD income is required. Go to Step 3

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

When keying the YTD details in Cuba, follow the instructions in Table 1 in Estimates Cuba Process Help. Consider the following factors:

• The YTD Calculator is only enabled for estimates after 1 July of a new financial year
• If no YTD income is provided for an estimate starting after 1 July, do not key the income as $0. Leave the YTD fields blank. Cuba will correctly make the estimate invalid if no YTD was provided. A zero YTD should only be keyed if the customer has indicated that their YTD was actually zero
• The YTD amount is the customer’s ATI received from the start of the current financial year and the day before the estimate is lodged. An estimate cannot be refused because the YTD is considered too low
• Record each type of income in this period. An estimate can be refused if satisfied that the YTD ATI provided by the customer is more than the amount likely to be the total of the actual income component amounts for this period (that is the YTD is overstated)
• To request Centrelink income information, see Centrelink - Child Support information exchange
• Net rental income, Net financial investment income, Target foreign income, Reportable fringe benefits and Reportable superannuation fields cannot be keyed from the Income Calculator. The customer must provide an amount for the relevant YTD period or an annual amount

Use the Annual/Period Income selector to accurately record and calculate how a customer provides their income information. For example, if a customer provides their:

• expected net rental income for the remaining estimate period, select Period
• yearly reportable fringe benefits, select Annual for the reportable fringe benefits
• Income details group box includes fields for both Net Rental Income and Net Financial Investment Income. Document the total of all rental income less rental expenses and all financial investment income less allowable investment related expenses. The net amount (profit or loss) is recorded in the respective field. If there is a net loss (for either), key the value as a negative so this displays in the Total Net Investment Loss field. When a customer provides their taxable income, check if this amount already includes an adjustment for net rental property and/or investment losses. If the customer confirms this, explain that Child support still needs to obtain and record their rental income and associated rental expenses (rental interest deductions, other rental deductions, capital works deductions), their total investment income and investment related expenses, and their taxable income without the adjustment for rental and/or financial investment income/expenses
• use the International Income Converter macro to convert any overseas income in the YTD period from the currency in which the income was earned or derived to Australian Dollars. If the currency required is not available, email the International Disbursement Team to request the required exchange rate

In the Estimate Income window > Estimate ellipsis > Estimate Component Details box > Income Calculator, key relevant details.

When keying the Estimate Component Details in Cuba, follow the instructions in Table 1 in Estimates Cuba Process Help. Consider the following factors:

• Estimate Component Details > Income Calculator group box, key relevant income amounts. To request Centrelink income information, see Centrelink - Child Support information exchange
• Net rental income, Net financial investment income, Target foreign income, Reportable fringe benefits and Reportable superannuation fields cannot be keyed from the Income Calculator. The customer must provide an amount for the relevant period or an annual amount
• Income details group box includes fields for both Net Rental Income and Net Financial Investment Income. Document the total of all rental income less rental expenses and all financial investment income less allowable investment related expenses. The net amount (profit or loss) is recorded in the respective field. If there is a net loss (for either), key the value as a negative so this displays in the Total Net Investment Loss field. When a customer provides their taxable income, check if this amount already includes an adjustment for net rental property and/or investment losses. If the customer confirms this, explain that Child support still needs to obtain and record their rental income and associated rental expenses (rental interest deductions, other rental deductions, capital works deductions), their total investment income and investment related expenses, and their taxable income without the adjustment for rental and/or financial investment income/expenses
• Adjusted Taxable Income, ensure amount is accurate. Correct relevant entry if required and press Calculate to recalculate the amount and OK to confirm.
• Use the International Income Converter macro to convert any overseas income from the currency in which the income was earned or derived to Australian Dollars. If the currency required is not available, email the International Disbursement Team to request the required exchange rate

If this is a subsequent estimate, also key any apportioned lump sum or specific period payments, as calculated in Table 2, Step 8 using the Lump Sum Apportionment calculator.

Select the Calculate button to calculate the total Expected Adjusted Taxable Income for the relevant tax year. Cuba will perform the 85% validity check against the LRYI used in the assessment to check if the estimate is valid and will not accept an invalid estimate.

Has a Cuba warning message displayed?

• Yes, go to Step 6
• No, go to Step 7

YTD ATI

Cuba will display a message if the 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 the YTD ATI is:

• zero and the start date of the election is:
• 1 July, this is correct. The YTD will be zero as there is no YTD period
• not 1 July, confirm that the zero is correct
• 10% higher than expected, confirm that the amount is correct

85% rule

The annualised amount of the first estimate election must be 85% or less of the customer’s ATI for the LRYI. Cuba performs the 85% validity check against the LRYI used in the assessment. Cuba will display a message after Calculate is selected. If the estimate is greater than 85% of the LRYI, confirm with the customer that the amount provided is correct. If the amount is correct, the estimate will be made invalid, see Table 5, Step 1.

Fixed Annual Rate (FAR) or Minimal Annual Rate (MAR)

Cuba will display a message if an estimate leads to a FAR or MAR assessment. Customers can make an application for FAR not to apply or MAR to be reduced to nil.

Case(s) ends before the end of the estimate period

Cuba will display a message if a case is expected to end during the financial year. This is to prompt the Service Officer to discuss the matter with the customer. Tell the customer that all the income earned within the financial year will be included in the estimate reconciliation, even the amount that is earned after the case ends.

For example, customer’s case will end 15 November 2021. They lodge an estimate of income on 1 October 2021. The customer has an increase to their income between the end date of their case (15 November 2021) and the end of the financial year (30 June 2022). The customer will be unable to lodge a subsequent estimate after 15 November to reflect their increased income. The estimate will still be reconciled based on the taxable income for the full 2021/2022 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 2021 to 15 November 2021).

If the system determines the estimate is invalid, check all details have been keyed correctly. See Table 5 to finalise.

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

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.

Save the status of the estimate as Pended and see Table 5 to finalise decision.

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.

If customer contact is unsuccessful and the estimate is valid and complete, it cannot be refused solely due to unsuccessful contact. Go to Step 5 below to confirm whether it meets the criteria for refusal.

Note: how the decision is keyed will impact on the wording of the letter that is 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 sets 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 11.

An estimate must meet the validity requirements as explained in Table 1. Also see Child Support Guide 2.5.1: Income estimates for a year of 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 is lodged. 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.

Go to Step 11.

Service Officers must refuse an estimate if satisfied the customer's:

• actual taxable income and other component amounts (their adjusted taxable income) for the estimate period is likely to be higher than the amount estimated
• 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 Service Officer may become satisfied the actual ATI is likely to be higher or that the YTD is likely to be lower:

• If there are unclarified discrepancies. The estimate may include inconsistent information that cannot be clarified by the customer or from available information (via evidence obtained, ATO system searches or Cuba searches). This may include:
• errors in the estimate calculation
• errors in the number of days in the remaining period, or
• the customer refusing to provide required information
• Where there is a dispute over assessable income and allowable deductions. Although Service Officers cannot determine amounts that are assessable or deductible for tax purposes, some amounts are not assessable or deductible in any circumstance. For example, child support payments are not allowable deductions for tax purposes in Australia. If there is reason to believe that the actual ATI is likely to be higher than the estimated income, refuse the estimate election
• If a customer cannot adequately substantiate their reason for making an election, and if satisfied that their actual income is likely to be higher than the estimate, refuse their estimate. For example, if a customer says they have lost their job but not receiving unemployment benefits, ask:
• why they are not receiving benefits
• how they plan to support themselves while unemployed
• for their termination certificate or other evidence of the resources available to them. If there is a doubt the customer has ceased employment, check with the previous employer. If satisfied the actual income is likely to be more than the estimated income, refuse the estimate

Note: the ability to refuse an estimate election is not limited to the circumstances above.

If an estimate election is refused, it is taken to have never been made and the customer is able to lodge a new estimate at any time. The earliest commencement date of a new estimate will be from the new date of notification. If an estimate election is refused, objection rights arise under section 80(1) of the Child Support (Registration & Collection) Act 1988.

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
• document the decision in Cuba
• select Save to generate the ME1-1 letter explaining why the estimate election was refused.

Go to Step 11.

When satisfied the estimate is valid, complete and correct, a Service Officer APS 3 level or above must accept the estimate. If approval is required (such as an estimate with a retrospective start date), route the Pending Estimate Income intray to a Service Support Officer to accept the estimate election.

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

Objection rights arise under section 80(1) of the Child Support (Registration & Collection) Act 1988.

If an estimate has been accepted, review the case/s to determine if:

• an accepted Post Separation Income (PSI) application exists for a period covered by the estimate. If so, the PSI decision will need to be reviewed and updated
• the new estimate includes income that may qualify for a new Post Separation Income (PSI) application. See Post separation income for Child Support parents.
• the estimated income has caused a fixed/minimum annual rate assessment, go to Step 8
• a Fixed Annual Rate (FAR) not to apply application was previously accepted for the current CS Period, go to Step 9
• the estimating parent is part of any case that involves a non-parent carer, go to Step 10
• the estimating parent has an existing reverse case, or if the estimate has automatically created or restarted a reverse case, see Table 6, to add the estimate and check that any estimates are correctly reflected
• care of any child/ren is shared or divided between the parents. If there is no reverse case - staff must check to see if a reverse case needs to be manually created, go to Step 7

Consult a Service Support Officer (SSO) for assistance if required.

When the care of any child/ren is shared or divided between the parents, accepting an estimate may mean that a reverse case is required. Reverse cases do not always start automatically, so manual creation may be required.

To check if a reverse case should be manually created after accepting an estimate:

• From the existing case > Go menu > Eligibility
• Check the Pre-confirmation results for a message stating that a reverse case needs to be created or amended manually

If a reverse case message occurs , see Managing reverse child support cases to create/manage the reverse case.

After the reverse case has been created, see Table 6 to check that all the estimate/s are correctly reflected in the reverse case.

Consult a Service Support Officer (SSO) for assistance if required.

If the estimate results in a Fixed Annual Rate (FAR), tell the customer they can apply for FAR not to apply. See Child Support Guide 2.4.11 Fixed annual rate. If the customer wants to proceed, see Fixed annual rate not to apply applications.

If a customer is assessed (but not required) to pay the fixed annual rate, as the other parent is assessed to pay a higher rate, they can still apply for the fixed annual rate not to apply to them.

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

• 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 of 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.

After accepting the estimate, eligibility must be manually run and saved if the parent is estimating for a case which involves the other parent as well as a non-parent carer.

Eligibility must be manually run and saved because Cuba does not automatically use the estimated income in calculating the entitlement for the non-parent carer. Eligibility may need to be run and saved more than once to correctly use the estimate in all relevant assessments. After saving eligibility check the correct incomes are being used.

The case liability rates window for the non-parent carer and the:

• estimating parent should display the estimate under Payer Details
• non-estimating parent should display the estimate under Other Liable Parent Details

If Cuba is not using the correct income, contact a Service Support Officer.

Use the Estimate documentation macro to document the estimate details, identified issues, customer discussion(s), estimate decision and outcomes.

Cuba will automatically generate the following letters, as relevant to each case:

• ME1-1 to parent to explain why their estimate election was invalid or rejected
• ME2-1 to the non-estimating parent advising that an estimate has been accepted
• ME2-2 to an estimating parent advising that an estimate has been accepted
• ME3-1 to a non-estimating parent when a subsequent estimate has been accepted
• ME3-2 to an estimating parent when a subsequent estimate has been accepted
• ME5-1 to the estimating parent to advise when an estimate is about to expire
• ME6-1 to the non-estimating parent to advise that an estimate which was to start on 1 July has been withdrawn
• ME6-2 to the estimating parent to advise that an estimate which was to start on 1 July has been withdrawn
• ME7-1 to estimating parent on updated YTD income amount
• RPO-01 payee overpayment letter

Check letters for accuracy. See Letters Cuba process help, View or preview a letter

Note: Continue to manage debt or other issues in line with the Customer Management Approach.

Procedure ends here.

Manual intervention may be required for reverse cases with:

• different or missing Child Support Periods (CS Periods)
• missing estimates
• estimates for different amounts
• different estimate start dates

Note: if taking a verbal estimate and the estimate alignment issues cannot be resolved during the interaction, see Table 2 and continue to take the estimate details. Document all details using the Estimate documentation macro. The processing of the estimate must be completed after the alignment issues have been resolved.

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. Attempt to resolve using the Eligibility Cuba Process Help. Consult a Service Support Officer (SSO) for assistance if required
• No, go to Step 2

Check if the CS Periods match for the reverse cases, in all periods affected by estimates. For estimates to align on reverse cases, the CS Periods must align throughout the entire financial year of the estimate(s). If CS Periods are different or missing, error messages may occur that prevent estimates applying correctly to reverse cases. These alignment issues usually relate to a CS Period being:

• cut short because one Cuba case ended when the reverse Cuba case commenced
• missing and is required for the estimate period (this will usually relate to a CS Period that ran before the start date of the reverse role), or
• incorrect. For example, started with an incorrect date on one of the reverse cases

Have any different or missing CS Periods been identified?

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

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

• Yes:
• for Service Officers, complete the Correcting errors macro and escalate to an SSO to action. For guidance, see Correcting a complex Child Support error.
• for SSO, go to Step 4 to align all relevant CS Periods
• No, go to Step 4 to align the current and/or next CS Period

Note: this process is specifically designed to allow estimates on reverse cases to be aligned. The process must be followed carefully as it is different to aligning CS Periods in other circumstances.

Open the Child Support Period - Production 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 identify 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. This message must be cancelled without saving eligibility. If eligibility were saved at this point, this may remove some of the CS Periods that have just been updated.

Where a CS Period has been cut short on an ended reverse case (where 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

On a 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

On a case with an incorrect 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 you 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 Cuba cases?

• Yes, this completes the reverse case checks. See Table 2
• No. If estimated incomes need to be added or corrected after any required updates to the CS Periods, go to Step 5

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

• Yes:
• for Service Officers, complete the Correcting errors macro and escalate to a Service Support Officer (SSO) to action. For guidance, see Correcting a complex Child Support error. Procedure ends here
• for SSO, go to Step 6 to add/correct all prior and new estimates
• No, go to Step 6 to add the new estimate

Identify all the estimate entries not applied (or that do not exactly match) in each of the reverse cases for all estimates, CLI amended estimates and CSA amended estimates.

For each entry:

• take screenshots of the Estimate Income - Production and Estimate Components Details - Production windows
• 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. These can be added 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. For example, with an incorrect start date or with a different estimated income amount. Both the start date and the income amount must match exactly.

Delete the incorrectly recorded estimates, and:

• open a new Estimate Income window to key the missing estimate/s or re-key an estimate that needed correction. Ensure the dates, details and amounts of each estimate/amended estimate on the reverse cases exactly match
• even if a reverse 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
• add the Correcting errors submission notepad and a copy of the relevant estimate notepad on the original case, to each added estimate entry. Add a note stating ‘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'.

Check the status of the newly added estimate entry:

• 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 ensure 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 Cuba applies these estimate entries to the assessment. After eligibility is run, the estimate status updates to Currently Used
• an estimate entry which was added to a reverse case with a start date before that case role commenced will have a status of Currently Used. If a subsequent estimate is added that also has a start date before the case role commenced, the status of the preceding estimate will update to Revoked, and the subsequent estimate will have a status of Currently Used

Have all estimates on the reverse cases been aligned?

• Yes, all estimates, including the newest estimate, have been aligned, See Table 5, Step 8
• No:
• all past estimates have been aligned, but newest estimate is still in progress, See Table 2
• there are still estimates to align, go to Step 1 to repeat this process

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

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 an update is considered appropriate by Child Support. 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 (for example 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. If Child Support:

• has been able to determine an accurate YTD, go to Step 5
• has not been able to determine an accurate YTD, the YTD will remain as it was before the customer election to update it. Contact the customer by phone to advise of the outcome. The customer must also receive the decision in writing. Issue a unique letter advising of the decision to refuse the customer’s election of a new YTD income amount. Use the 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, follow the Customer Referral Guidelines for Estimate Reconciliations. A specialist estimate Service Officer will check the request in accordance with Customer disputes child support estimate reconciliation.

Processing for a Service Officer YTD determination

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

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 YTD details.

The system displays a message ‘Is this change initiated by Child Support?’ Select Yes to generate the correct YTD ATI updated letter that includes the objection paragraph. The next time a Service Officer navigates to the YTD Calculator, the Child Support initiated check box will be ticked.

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

Cuba will display a message 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 appropriate 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