Reconciling an overseas estimate (from 1 July 2011) 277-07060030

Before reconciling any estimate check if:

• any cases for the estimating customer are ended, or about to end, due to Family and Domestic Violence? If so, do not reconcile the estimate for that case. See Table 1 > Step 1 in Manual reconciliation procedure for child support estimates (from 1 July 2011)
• a specialist area is managing other issues for the customer. If required, consult with the case manager. See Table 1 > Step 3 in Manual reconciliation procedure for child support estimates (from 1 July 2011)
• all relevant estimates within the relevant financial year have been processed correctly. If there appears to have been an error that could impact the reconciliation, consult a Service Support Officer (SSO) and see Correcting errors on Child Support cases
• any changes in liability or errors are showing in the Cuba Eligibility window. If so, seek SSO support to resolve other issues before starting to reconcile
• there are other issues or exceptions that require additional manual intervention. For example, a Deceased Customer indicator, an Income amount Order etc. Check the full list of manual intervention reasons, see Table 1 > Step 8 in the Manual reconciliation procedure for child support estimates (from 1 July 2011)

When an overseas resident lodges an estimate to use in their Australian assessment, this is known as an overseas estimate.

Overseas estimates are made under the Australian Child Support (Assessment) Act in the same way as other estimates. They are for income in the Australian financial year from 01 July to 30 June.

Although overseas estimate reconciliations are processed in a similar way to domestic estimates, some extra processes must be completed:

• checking residency
• for some New Zealand (NZ) residents, requesting and/or using pre-requested information from New Zealand Inland Revenue (NZIR) via the International team
• converting overseas income into Australian dollars (AUD)
• requesting that changes to collectable liability be notified to the relevant overseas authority

The notepad of the 'Est Rec Tax Ret Not Lodged' intray should indicate which year is to be reconciled.

If the intray does not identify the year to be reconciled, check the Client Income window for estimates not reconciled.

Note: some overseas estimates may have been keyed as an 'ESTIMATE INCOME' instead of 'OS EST INCOME'. However, the customer's residency details and the estimate notes should confirm if they were overseas estimates.

A customer may have lodged an estimate when they were an Australian resident and changed residency during the same estimate year. Treat these estimates as overseas estimates for reconciliation purposes.

Not all customers that have overseas estimates have ‘Est Rec Tax Ret Not Lodged’ intrays. Other intray types such as ‘Estimate Rec’, ‘Pending Auto Reconciling Inc’ or ‘Reconciliation Required’ intrays may also occur for these customers.

Is there an OS TAX INCOME record showing in the Client Income window that appears to be for the same year as the estimate?

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

An OS TAX INCOME in the Client Income window cannot be used to reconcile an overseas estimate.

If there is more than one OS TAX INCOME in the Client Income window, parts of each income cannot be added together to reconcile an overseas estimate.

In most cases, an OS TAX INCOME has been calculated with income received in the financial year of the overseas country. When the financial year is different to the Australian financial year it cannot be used to reconcile an estimate. Only Australian financial year income can be used to reconcile an estimate.

OS TAX INCOME records in Cuba appear to be for an Australian financial year but in almost all cases they are not.

For example, a New Zealand financial year is from 1 April to 31 March. In the Cuba Client Income window, an OS TAX INCOME for a New Zealand resident with a tax year showing as 2023–24 is not showing income for the Australian 2023–24 financial year. It is normally showing income received in the NZ financial year from 1 April 2023 to 31 March 2024. It would therefore be incorrect to use this to reconcile an estimate.

Note: there are some specific, rare circumstances when an OS TAX INCOME record may contain income from an Australian financial year due to more than one residency in that year. If the notepad specifically states that this has occurred, and that the specific dates of the income are from 1 July to 30 June, consult an SSO. The SSO must check with the National SAS Estimate PSM to confirm if the income can be used in the reconciliation.

The following categories of income are used to reconcile an overseas estimate:

• Australian income, for example, income from periods when the customer was an Australian resident or other income they have received from Australia, and
• Overseas income received within the Australian financial year, for example, from the overseas country the customer was a resident of for part of, or all of the year, and
• Target foreign income, for example, periods as an Australian resident when the customer also received income from an overseas source

Before seeking information on overseas income, check for any relevant Australian income through:

• Client Income window for any Australian Taxation Office (ATO) taxable or amended taxable incomes
• ATO ICP or ATO TSF systems
• Client Income screen and Income Details window in Cuba for relevant non-taxable Centrelink or Department of Veterans’ Affairs (DVA) income. See Table 15 > Step 3 of Manual reconciliation procedure for child support estimates (from 1 July 2011)

Note: estimates for some customers may show as already reconciled using an ATO income. If a new ‘Est Rec’ related intray has generated for these customers, it may be because they have an overseas estimate/residency/address or ID number. Re-check income for these customers using this procedure to see if there is overseas income that should have been included. A re-reconciliation may be required if overseas income is found.

Create a notepad on the relevant estimate with the subject ‘AUST INCOME’.

Document all Australian income details found in step 5. If no Australian income is found, note that searches for Australian income have been completed, and that no Australian income was found.

This information will be used later in the process.

Check the residency of the customer during the financial year of the estimate. The customer may have been a resident of more than one country during that year.

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 overseas residency within the financial year of the estimate

If the customer does not appear to have been an overseas resident for any part of the estimate period, consult an SSO.

Note: residency decisions are made by specialist Residency Service Officers. For more information, see Residency decisions for Child Support customers.

During the financial year of the estimate, if the customer appears to have been:

• only an Australian resident, go to Step 8
• a New Zealand (NZ) resident, go to Table 2
• a resident of an overseas country other than NZ, go to Table 3
• a resident of more than one overseas country go to Step 9

• If the ‘Est Rec Tax Rec Not Lodged’ intray notepad shows New Zealand (NZ) income has been received, go to Table 2
• If the Estimate notepad contains any information about:
• NZ income, for example, the customer said they would be receiving NZ income, go to Table 2
• income from another country (other than Australia or NZ), for example, the customer said they would be receiving other overseas income, go to Table 3
• If none of the above information is found, are there any Australian estimates that require reconciliation?
• Yes, see Manual reconciliation procedure for child support estimates (from 1 July 2011) and Estimates Cuba Process Help
• No, the procedure ends here

If the estimating parent was a resident of more than one overseas country in the financial year of the estimate, seek information about income from each of those countries.

• If one of the overseas countries was New Zealand, go to Table 2
• If none of the overseas countries was New Zealand, go to Table 3

For some New Zealand residents, information received from New Zealand Inland Revenue (NZIR) will prepopulate in the notepad of the ‘Est Rec Tax Ret Not Lodged’ intray. This information comes from NZIR due to an annual bulk request.

Open the ‘Est Rec Tax Ret Not Lodged’ intray to view any notepads.

Is there an intray notepad with the Subject of ‘NZ estimate rec required’?

• Yes, and the notepad includes:
• a dollar amount of $0 or any other higher amount, for every month of the Australian financial year, Go to Step 4
• the words ‘Not Available’ for some or all the months of the Australian financial year. Go to Step 5
• No, Go to Step 2

From the estimating customer’s front screen, select Go > Client Income and open the relevant estimate record.

Check the notepads for the relevant estimate.

If there is a notepad that includes NZ income details with:

• a dollar amount of $0 or any other higher amount, for every month of the Australian financial year, go to Step 4
• a list of Ausralian financial year months, with the words ‘Not Available’ for some or all the months, go to Step 5
• none of the above types of income information, go to Step 3

From the estimating customer’s front screen, select the Collection menu, then select the Collection option.

Check for any information gathering entries with NZ, NZIR or similar in the title.

From the estimating customer’s front screen, select the Go menu > Communication.

Check for any Communication with ‘NZIRD’ or ‘CENTRAL AUTH’

If there is a notepad that includes NZ income details with:

• a dollar amount of $0 or any other higher amount, for every month of the Australian financial year, go to Step 4
• a list of Ausralian financial year months, with the words ‘Not Available’ for some or all the months, go to Step 5
• none of the above types of income information, go to Step 6

When there is a notepad that includes an NZ dollar amount of $0 or any other amount, for every month of the Australian financial year, this means:

• Child support has already automatically requested income details from NZIR
• NZIR have provided income details for every month, and
• further requests for NZ income are not required

Highlight and copy all the NZ income information from the intray notepad.

• From the Client Income window, highlight and open the relevant OS EST INCOME or ESTIMATE INCOME entry
• Create a new notepad attached to the OS ESTIMATE / ESTIMATE INCOME with a subject ‘NZ Income Info’
• Paste all the copied NZ income information from the notepad into the new notepad
• Also paste a copy of the NZ income information:
• in the Collection window (if not already there). Include the words ‘NZ’ or ‘NZIRD’ in the title of the entry
• in the Communication window (if not already there). In the With field, select NZIRD

Consider if this customer is likely to have had other income in that year. For example:

• from any other overseas countries, or
• they have included business income in their estimate, which is not included in standard automated NZIRD request, or
• there are multiple months with $0 or minimal income, without a reasonable explanation

Is the Service Officer satisfied that the NZIRD income and/or any Australian income found in Table1, is likely to be the customer’s only income for the year?

• Yes, customer contact is not required at this point. Go to Table 4.
• No, customer contact is required. Go to Step 8

When the notepad includes the words ‘Not Available’ for some or all the months of the Australian financial year, this means:

• the agency has already automatically requested income details from NZIR, and
• NZIR have provided income details for any months they have data for, and
• they did not have data for the months that show as ‘Not Available’ and
• further requests to NZIR for income that year are not required

Note: ‘Not Available’ does not always mean that the customer had no income in that month. It just means that NZIR do not have a specific figure for that month. This can occur for various reasons, for example:

• the customer was not resident in NZ during that month
• the customer had income from self-employment or another source that does not automatically report monthly income to NZIR

Highlight and copy all the NZ income information from the intray notepad:

• From the Client Income window, highlight and open the OS EST INCOME entry
• Create a new notepad attached to the Overseas Estimate with a subject ‘NZ Income’
• Paste the copied NZ income information from the intray notepad into the new notepad
• Also paste a copy of the NZ income information:
• in the Collection window (if not already there). Include the words ‘NZ’ or ‘NZIRD’ in the title of the entry
• in the Communication window (if not already there). In the With field select ‘NZIRD’

Consider whether any gaps in income during the estimate period have already been adequately explained by information recorded in the system. For example, if the customer was on a short break between jobs where the income was $0 or ‘Not Available’.

Have all gaps in income been adequately explained?

• Yes, go to Table 4 > Step 1
• No, information must be requested from the estimating customer. Go to Step 8

Attempt to contact the estimating customer by phone, to request information and evidence about their income during the estimate period. from 1 July to 30 June.

For more information about contacting customers and making international phone calls, see Contact with Child Support customers. See Resources for international time zones.

If phone contact is successful

Tell the customer that we need information to check the accuracy of their estimate and update the assessment if required. Emphasise that we need information for the whole Australian financial year for the period 1 July to 30 June,

If the customer was resident in more than one country during that financial year, they will need to provide information re income from all relevant countries.

Types of evidence to request

The type of evidence required will vary from case to case, but may include:

• documents from employers such as payslips or a letter stating the income earned
• a statement from a relevant government department showing payments made to the parent
• documentation from an accountant or tax agent (advise the customer that accountants or tax agents may charge them for these documents)
• documentation of allowable deductions for tax purposes in the customers country of residence
• information and/or documents to explain any gaps in income, for example periods where they were looking for work, unable to work due to travel, illness, incarcerated, or being supported by family

Provide the customer with a reasonable due date for any information requested. See Contact with child support customers for standard response times and other considerations.

In the overseas estimate notepad, document contact attempts and details of any information provided by/requested from the customer. The notepad subject should be ‘Customer Contact’ and must include the due date for any information requested.

Was phone contact successful?

‘Successful’ phone contact means that a Service Officer has spoken with the customer and explained which information is required and when.

• Yes, go to Table 4
• No, go to Step 9

If phone contact is unsuccessful, send a request for contact/information (MX1-1) letter using the MX1-1 00006 Estimate reconciliation pending - request for information template. Allow Standard response times. The standard response time for an overseas resident who does not have an online account is 35 days. See Letters Cuba Process Help and Contact with child support customers.

Note: Service Officers do not need to wait for the letter expiry date before going to the next step. However, they must wait for the letter expiry date before finalising any reconciliation outcome.

Once the letter is keyed in Cuba, go to Step 10.

Before sending a manual request to NZ IRD for income information, check:

• intray notepads, including ‘Est Rec Tax Ret Not Lodged’ intray
• estimate notepads
• Communication window, (look for NZIRD or Central Authority in the With field) and
• Collection window (look for NZIRD or NZ in the title of any recent entry)

Do any of the above records in Cuba indicate that NZIRD have already sent, or been asked to send, income details for this customer and for this financial year?

• Yes, do not send another request. Go to Table 4
• No, and the customer
• does appear to have an NZIRD number in the OS ID field of Cuba. Go to Step 11
• does not have an NZIRD in the OS ID field of Cuba. Go to Table 4

Overseas income information can be requested under the Australia New Zealand Agreement. Customers need to be on salary/ wage (not self-employed) and/or benefit income for NZIR to provide this information.

Service Officers can send a request for income information to the International NZ Administration Team after a genuine phone contact attempt has been made, (successful or unsuccessful) and a request to contact letter is issued.

Before sending a manual request, Service Officers must have checked that the information has not already been requested or received from NZIR.

We must have an NZIRD number recorded in Cuba for the customer.

To request NZIR information:

• complete the NZ income request template:
• Complete the blue coloured fields in the template. The green coloured fields will be completed by NZIR
• To find the Customer's Inland Revenue Department (IRD) in the Customer window of Cuba > Go menu > select Details. If available, the number will be in the field OS ID on the top row
• Include the User ID of the Service Officer who is managing the estimate reconciliation and their Team Leader, in the relevant field of the template
• email the template to International NZ Administration Team and copy in the Team Leader of the Service Officer who is managing the estimate reconciliation

From the Client Income window:

• add a notepad to the overseas estimate and document that NZ income information has been requested through the international team

Add a copy of the notepad in the:

• Collection window (if not already there). Include the words ‘NZ’ or ‘NZIRD’ in the title of the entry
• Communication window (if not already there) In the With field select NZIRD

Allow 2 weeks for a response. If no response, contact the International NZ Administrative team.

Before continuing, wait for:

• the response from International NZ Administrative team, or
• confirmation that the income details are not available

A response will be emailed to the Service Officer and their Team Leader.

The Estimate Reconciliation Service Officer must copy the income details from the response into the overseas estimate notepad including:

• the NZ income from each month in the Australian financial year
• the total of the NZ income

Also document the income details from the response in the:

• Collection window (if not already there). Include the words ‘NZ’ or ‘NZIRD’ in the title of the entry.
• Communication window (if not already there) In the With field select NZIRD

Go to Table 4

Check the following in Cuba:

• The Estimate notepad
• Correspondence window
• Communication window
• Collection window
• Change of Assessment (COA), objection and Administrative Review Tribunal (ART) applications and searches
• COA, Objections & ART decisions
• Court Orders

Identify any information about overseas income in the financial year of the estimate.

Attempt to contact the estimating customer by phone, to request information and evidence about their income during the estimate period. from 1 July to 30 June.

For more information about contacting customers and making international phone calls, see Contact with Child Support customers. See Resources for international time zones.

If phone contact is successful

Tell the customer that we need information to check the accuracy of their estimate and update the assessment if required. Emphasise that we need information for the whole Australian financial year for the period 1 July to 30 June.

If the customer was resident in more than one country during that financial year, they will need to provide information re income from all relevant countries.

Types of evidence to request

The type of evidence required will vary from case to case, but may include:

• documents from employers such as payslips or a letter stating the income earned
• a statement from a relevant government department showing payments made to the parent
• documentation from an accountant or tax agent (advise the customer that accountants or tax agents may charge them for these documents)
• documentation of allowable deductions for tax purposes in the customers country of residence
• information and/or documents to explain any gaps in income, for example periods where they were looking for work, unable to work due to travel, illness, incarcerated, or being supported by family

Provide the customer with a reasonable due date for any information requested See Contact with child support customers for standard response times and other considerations.

In the overseas estimate notepad, document contact attempts and details of any information provided by/requested from the customer. The notepad subject should be ‘Customer Contact’ and must include the due date for any information requested.

Was phone contact successful?

‘Successful’ phone contact means that a Service Officer has spoken with the customer and explained which information is required and when.

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

If phone contact is unsuccessful, send a request for contact/information (MX1-1) letter using the custom MX1-1 00006 Estimate reconciliation pending - request for information template. Allow Standard response times. The standard response time for an overseas resident who does not have an online account is 35 days. See Letters Cuba Process Help and Contact with child support customers.

When the expiry date for the letter is reached, go to Table 4.

Wait until at least one day after the due date of any information requested from the customer.

Consider all available information about both Australian and overseas income:

• received from the customer by phone or in correspondence
• recorded on the customer's record
• from the Australian Taxation Office (ATO) through ATO ICP or ATO TSF systems
• recorded in Cuba Client Income and Income Details window. This includes taxable income details from the ATO and any relevant taxable and non-taxable income from Centrelink or DVA
  Note: for more information on which Australian income to include, see also Table 15 > Step 3 >Gather Information in Manual reconciliation procedure for child support Estimates
• from any NZ income response including information received automatically via an intray notepad or manually via an email response from our International team

Consider whether any gaps in the information have been adequately explained. For example, if the customer was on unpaid leave, had a short break between jobs or was awaiting government benefits for a period where the income was $0 or ‘Not Available’

On the overseas estimate, create a notepad.

Subject: Determined income details

Text: Overseas estimate reconciliation with a determined income is required for YYYY/YYYY year.

List the source, overseas currency amount(s), relevant period(s) and the conversion rate to AUD. If you have obtained NZ income details from NZIR, include all the month-by-month details and add the conversion details. Include any Australian income details and any reasons found for any gaps in income

Save the notepad.

Is there sufficient information to reconcile the estimate?

• Yes, go to Step 3
• No, go to Step 2

If there is insufficient income information for reconciliation, set the Reconciliation Status of the estimate to PARKED.

In the Client income widow:

• Select the relevant Estimate entry and open
• Set the Reconciling Status of the estimate to Recon-No Change in the Estimate Income window
• Add the notepad to the estimate:

Subject: Recon Parked

Text: There is insufficient income information available to reconcile this estimate. (Add details of contact attempts, requests for information, any information received, and information still required).

The estimate has been set to PARKED.

If more information becomes available, estimate reconciliation may occur later.

Reference: Section 64AB Child Support (Assessment) Act 1989

• Select Save

Go back to the Client Income window

• Select the relevant Estimate entry and open
• Change the Reconciliation Status from Recon-No Change to PARKED

Procedure ends here.

Overseas income must be converted to Australian Dollars (AUD) before it can be used in an estimate reconciliation. The same exchange rate used for the original estimate must be used for the reconciliation. Refer to the overseas estimate notepad for the exchange rate used for the original estimate.

If the exchange rate for the original estimate cannot be found, consult your Service Support Officer (SSO). SSOs can contact National Specialised Assessments Program Support Manager (PSM) if required.

Multiply the overseas income by the exchange rate to convert to Australian Dollars. For example:

• the exchange rate used in the original estimate notepad was 0.92 to convert NZD to AUD, and
• it is determined the total NZD income for the estimate year was $52,000
• multiply the overseas income total of $52000 by 0.92 to convert to AUD of $47,840. The AUD figure will be used in Cuba when the reconciling income is keyed later in this process
• seek help from an SSO if needed

Note: if any income details were gathered from an intray notepad with the Subject ‘NZ estimate rec required’ then those amounts are in New Zealand dollars and must be converted.

• Check the current YTD income used in the estimate. Compare the current YTD income to the income details gathered. Take into account any currency conversions when comparing
• Only proceed with a YTD amendment if the YTD is clearly incorrect. For example:
• YTD is zero and NZIRD data shows income in YTD period
• NZIRD data shows more income in YTD period than stated by the customer during estimate lodgement
• income details show just one employer. ATO TSF data shows income from 2 employers in the YTD period

Is it clear that the YTD is incorrect?

• Yes, and the correct YTD amount:
• can be determined without further information, go to Step 3
• cannot be determined. Attempt contact with the customer by either one pre call SMS and one phone attempt, if this is appropriate given any overseas time difference, or
• if a phone attempt cannot be made, issue an MX1-1 letter using the preset CALL-GENERAL-YOUR CASE option, with a suitable response date. See Standard response times
  Note: if an MX1-1 was sent earlier in this reconciliation process and there has been no response, another letter is not required.
• No, the YTD does not appear incorrect. Go to Step 4

Can a new YTD be determined?

• Yes, determine and amend the YTD before reconciling the estimate:
• Use the information available to determine the new YTD income
• If using monthly income amounts, only use pro-rated daily amounts if you are satisfied that the income was earned evenly across the month
• Convert any overseas currency amounts to Australian dollars using the same exchange rate used in the original estimate
• To process the YTD amendment, follow only Table 5 > Step 3 in Estimates Cuba Process Help
• Select Yes when the dialogue box pops up asking if Child Support initiated the change. This issues the correct ME7-1 letter to the estimating customer
• Document the information used to make the decision using the text below:
  Subject: YTD Amendment
  Text: Customer’s Year to Date income was found to be inaccurate during determination of a reconciling income.
  Existing YTD: [key the current income details]
  New YTD: [key updated or additional income details and source]
  
  References: Section 63AE Child Support (Assessment) Act 1989
  Table 4, Step 5 of OB Reconciling an overseas estimate (from 1 July 2011) 277-07060030
• No, the correct YTD amount is not clear, leave the current YTD amount unchanged, and go to Step 6

If this is a re-reconciliation due to additional overseas or other income being added to an existing reconciling income, seek SSO support.

If the new adjusted taxable income (ATI) is higher than the previous reconciling income, the previous reconciliation will need to be deleted before re-reconciling.

Create a pended reconciling income:

• From the Client Income window > Go menu > Reconcile > select the year to be reconciled to open the Reconciliation Calculator
• In the Details of Child Support Income/Allowable Deductions window:
• Remove any pre-populated entries. Pre-populated entries may cause errors if not removed
• Manually load the income information into the Details of Child Support Income/Allowable deductions window
• Key all income received in the Australian financial year for the 12 month period starting from 1 July and ending 30 June
• Include any Australian income, including ATO income, and relevant Centrelink/Department of Veterans’ Affairs (DVA) payments, as well as the converted overseas income
• For income from NZIR, convert the total amount of NZ income to AUD before keying it as one entry in the Cuba calculator. In the Cuba calculator, use the Description OTHER INCOME, Source OVERSEAS AUTHORITY and Title TOTAL NZ INCOME CONVERTED TO AUD
  Note: for help keying the income information in Cuba, see Table 4 in Estimates Cuba Process Help
• For income from all other countries, convert the total amount of Overseas income to AUD before keying it as one entry in the Cuba calculator. In the Cuba calculator, use the Description OTHER INCOME, Source OVERSEAS INCOME and Title TOTAL OS INCOME CONVERTED TO AUD. See Table 4 in Estimates Cuba Process Help
• When all the income has been keyed, press OK to view the Reconciliation Calculator window
• In the Reconciliation Calculator window, Select Calculate, then OK to view what the outcome would be IF the reconciling income was used in the assessment

In the Reconciliation Calculator window, view the results to see what the outcome would be IF the reconciling income was used in the assessment.

See Table 6 in Estimates Cuba Process Help.

Does the estimate require reconciliation?

• Yes, the determined income is higher than the expected income and reconciling will change the assessment in a way that is intended. For example, an increase in liability for a Paying Parent who has underestimated, or a decrease in entitlement for a Receiving Parent who has underestimated, go to Step 8
• No:
• The determined income is higher than the expected income but there would be an unintended outcome. For example, a decrease in liability for a Paying Parent who has underestimated, or an increase in entitlement for a Receiving Parent who has underestimated, go to Step 11
• The determined income is lower than the expected income, or there is no change to the assessment, go to Step 10

If the estimate requires reconciling, in the Reconciling Estimate income window:

• Select Create Reason as INT
• Keep the Reconciling income Status as Pended
• Select the notepad icon to document:
• Subject: Pended Estimate Reconciliation
• Text: yyyy/yy estimate requires reconciliation using a determined adjusted taxable income (ATI).
• Examination identified the determined ATI is higher than the expected ATI.
• ME4-4 Letter sent advising of Pended Estimate Reconciliation.
• If customer contacts confirm:
  pended reconciliation information including deductions
  YTD income

When the notepad is complete:

• Save the notepad
• Stay in Reconciling Estimate window
• Select Save from the top menu, to save the reconciliation calculation as Pended
• Select Yes when asked to send the ME4-4 Interim Estimate Reconciliation Pending letter

An appropriate timeframe to respond is:

• for online customers: 14 days (as per the ME4-4 letter)
• for surface mail customers: follow the Standard response times

If the customer has not responded, continue with the Reconciliation. Go to Step 12.

If the customer has responded, adjustments to the Pended Reconciling Income may be required.

Check the reconciliation result based on the Pended Reconciling income:

• If the determined income is lower than the expected income, or if reconciliation will result in no change to the assessment, go to Step 10
• If the determined income is higher than the expected income but there would be an unintended outcome. For example, a decrease in liability for a Paying Parent who has underestimated, or an increase in entitlement for a Receiving Parent who has underestimated, go to Step 11
• If the determined income is higher than the expected income and reconciling will change the assessment in a way that is intended. For example, an increase in liability for a Paying Parent who has underestimated, or a decrease in entitlement for a Receiving Parent who has underestimated, go to Step 12

If reconciliation will result in no change to the assessment:

• in the Reconciling Estimate income window:
• select Create reason as INT
• keep the status of the reconciliation as Pended
• select the notepad icon to document:
  Subject: Reco No Change Decision
  Text: yyyy/yy estimate reconciled using a determined adjusted taxable income (ATI).
  Examination identifies determined income is lower than the expected income, or
  Examination identifies reconciliation will result in no change to the assessment.
  Estimate set to Recon-No Change accordingly.
  Pended Reconciliation entry deleted.
  Legislation: <insert the appropriate legislative reference below>
  Section 64, Child Support (Assessment) Act 1989 or
  Section 64AB, Child Support (Assessment) Act 1989
  and
  Section 64AC, Child Support (Assessment) Act 1989, or
  Section 64AD, Child Support (Assessment) Act 1989'
• Save the notepad, and:
• select Save on the Reconciling Estimate Income window to save the status as Pended
• select No when asked if an interim letter is required

Note: saving the Pended entry is required to ensure there is a record of the Pended calculation in the income history. This must be done even when the Pended calculation will not be used in the assessment.

For some customers, the Reconciling income may have been determined to be zero and cannot be saved as Pended. If this occurs, add a note to explain this is why the income was not pended.

Go to the Client Income window:

• Delete the pended reconciling entry by highlighting, then File, Delete
• Highlight the relevant original estimate in the Client Income window and open
• Set the Reconciliation Status of the original estimate to Recon-No Change in the Estimate Income window
• Add a copy of the same notepad above
• Select Save to save the reconciliation status as Recon No Change

Procedure ends here.

If reconciliation will result in unintended outcome:

• In the Reconciling Estimate Income window:
• Select Create Reason as INT
• Keep the status of the reconciliation as Pended
• Select the notepad icon to document:

Subject: Recon No Change

Text: The customer was assessed on the Fixed Annual Rate (FAR) based on their estimate and reconciliation would result in an assessment of less than the FAR.

In cases where reconciling an estimate with a higher income would benefit the estimating parent, the estimate must not be reconciled.

The status of the estimate has been set to Recon-No Change.

Reference: Table 1 Step 7 ‘Reconciliation with an unintended outcome’, in Manual reconciliation procedure for child support estimates (from 1 July 2011) 277-0706002.

• Save the notepad
• Select Save to save the status as Pended
• Select No when asked if an interim letter is required
  Note: saving the pended entry is required to ensure there is a record of the pended calculation in the income history. This must be done even when the pended calculation will not be used in the assessment.
• In the Client Income window, highlight and select File, Delete to delete the pended reconciling entry. This should automatically delete the intray
• In the original Estimate Income window:
• Set the Reconciliation status of estimate to Recon No Change
• Add the same notepad that was used above to explain the unintended outcome

Procedure ends here.

If the reconciliation will correctly result in a change to the assessment:

• Highlight the Pended Reconciling entry on the Client Income window
• Select the Open icon to open the Reconciling Estimate Income window
• In the Reconciliation calculator, press Calculate and OK to check that the details are still correct
• In the Reconciling Estimate Income window, Change Status to 'Recorded'
• Select the notepad icon and document:
  Subject: Estimate Reconciliation

Text:

Reconciliation of estimate using a determined adjusted taxable income (ATI).

Examination identified the determined ATI is higher than the expected ATI.

No response has been received to the ME4-4 letter. (Or, if there was a response to the letter, document details and any adjustments made).

Legislation:[insert the appropriate legislative reference below]

• Section 64, Child Support (Assessment) Act 1989, or
• Section 64AB, Child Support (Assessment) Act 1989

And:

• Section 64AC, Child Support (Assessment) Act 1989, or
• Section 64AD, Child Support (Assessment) Act 1989

• Select the Save icon to save the status of the Reconciling income as Recorded

Note: saving the status as Recorded means that the reconciling income will actually be used the assessment(s).

Check the resulting assessments and letters are correct for all relevant cases.

When we, the Australian Child Support Agency, ask an Overseas Authority to collect child support payments from an overseas resident, this is called ‘transmitting’ a case for collection.

If a case has been transmitted by Child Support for collection by an overseas authority, any change in liability must be notified to that authority. This does not happen automatically. After an estimate reconciliation, the Service Officer who reconciled the estimate must follow these steps:

To check if a case has been transmitted for overseas authority collection:

• from the Customer window > Go (menu) > Involvement List > Case
• from the Case screen > Accounting (menu) > International transmittal

If there is any entry in the International transmittal screen, a transmittal has been processed.

The entry will identify the jurisdiction the case has been transmitted to.

Repeat this process for all cases where the liability has changed.

Has Child Support transmitted a case (or cases) for overseas authority collection?

• Yes, a notice must be manually requested for that authority. go to Step 14
• No, procedure ends here

To request an amended certificate be issued for New Zealand:

• Create a NEW ZEALAND INFO REQUESTED intray
• Add a notepad to the intray:
  Subject: Amended Cert Required
  Text: Customer’s liability has changed due to reconciliation of [YYYY/YYYY] estimate. An amended certificate may be required.
• Route the intray to:
• Office: International Hobart
• Stream/Team: MC S003 Cent Auth TM 1
• Position: NZ info Request

In the Client Income window add a notepad to the estimate to document:
Subject: Follow Up intray created
Text: As customer liability has changed, a follow up intray has been routed to International NZ team requesting an amended certificate.

For all other countries:

• Create an INTERNATIONAL STHOLD FOLLOWUP intray
• Add a notepad to the intray:
  Subject: Amended Certificate Required
  Text: Customer’s liability has changed due to reconciliation of [YYYY/YYYY] estimate. An amended certificate may be required.
• Route the intray to:
• Office: International Hobart
• Stream/Team: MC S003 Cent Auth TM1
• Position: Z Overseas Future Work

In the Client Income window, add a notepad to the overseas estimate to document:

Subject: Follow Up intray created

Text: As customer liability has changed, a follow up intray has been routed to International team requesting an amended certificate.

If a customer disputes the outcome of an estimate reconciliation, see Customer disputes child support estimate reconciliation.