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Child Support estimates review (Post 1 July 2010) 277-07050000

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Income estimate scenarios

Table 1

Item	Scenario
1	Scenario 1 Estimate Period: 1 August 2019 – 30 June 2020 Estimate loaded for $45,000 pa Payer calls on the 11 December 2019. They advise income has dropped to $22,000 pa What options to offer this customer? Response A subsequent estimate can be taken from date of notification - 11 December 2019. The effective/start date will be the date of notification 11 December 2019 because the customer’s income has dropped. If the customer's income dropped a significant period of time ago then a change of assessment may be an option.
2	Scenario 2 Estimate Period: 1 August 2019 – 30 June 2020 Estimate loaded for $27,000 pa Payer calls on the 11 November 2019. They advise they have had a promotion to $45,000. They had been meaning to call since it occurred on the 5 October 2019 What options to offer this customer? Response A subsequent estimate by the customer is required. The date of notification is 11 November 2019 and the date of event is 5 October 2019. The effective/start date is 5 October 2019 because the customer's income has increased.
3	Scenario 3 Estimate Period: 01/08/2019 - 30/06/2020 Estimate loaded for $27,000 pa Payer calls on 11 September 2019. They advise they have accepted a promotion to $50,000 pa today What options to offer this customer? Response The customer must lodge a subsequent estimate because there is a change in income. The subsequent estimate will have an effective/start date of today.

Questions and answers relating to income estimates

Table 2

Item	Description
1	Question - Can Child Support amend any part of the child support formula when reviewing an estimate? Answer No. When reviewing an estimate Child Support will only consider if the estimated adjusted taxable income of the customer is accurate. If Child Support decide the estimate is no longer accurate, they will amend the assessment using the reviewing income.
2	Question - I have discovered that more than 1 event has occurred since the estimate was first accepted. How should I review the estimate? Answer Only review any estimate once at any given time. The amendment date will be the earliest event date that resulted in a change in income. When calculating the adjusted taxable income simply ascertain the income received since the event date until the end of the financial year taking into account all further fluctuations in income. This may include income received in a period that is now covered by a subsequent estimate.
3	Question - How do I review an estimate where a lump sum has been received? Answer Lump sums need to be treated no differently than ‘regular’ assessable income receipts. The receipt of a lump sum would ordinarily constitute an event for reviewing purposes. When calculating the adjusted taxable income ascertain the income received since the event date (or notification date) until the end of the financial year taking into account the assessable lump sum payment if it falls within this period. Note: payments under the National Disability Insurance Scheme (NDIS), National Redress Scheme, Territories Stolen Generations Redress Scheme or First Home Super Saver (FHSS) Scheme are not considered as income for Child Support purposes.
4	Question - How do I review multiple estimates? Answer Each estimate must be looked at separately when considering a review. In other words, there must be an event defined for any estimate that is to be reviewed and result in an amendment.
5	Question - Can Child Support amend an estimate once the financial year has ended? Answer Yes, Child Support can either Client or CSA Amend an estimate at any stage, before the estimate is reconciled. Once the estimate has been reconciled Child Support can no longer review the estimate.
6	Question - Can Child Support amend the estimate using the income details in this s161 response? The s161 response from the employer shows the customer ceased employment, and includes income details while employed. Customer has not responded to contact attempts and no income information found for the period after the customer ceased employment. Answer No. If the s161 response provides a date the customer ceased to be employed, the estimate review should not include income from that employer for the period after the customer ceased employment. Child Support needs to determine whether the customer has any source of income after the date the s161 response says they finished work. If the customer is working again, Child Support needs to determine their income and include it in the estimate review. If Child Support finds the customer’s income for the remaining period is likely to be $0 – it is appropriate to record this as their income for that period. An example of a zero income can be when a person is incarcerated. If Child Support cannot be satisfied of the customer’s income for the remaining period, a review and amendment would not be appropriate.