Suspending or ending a Child Support agreement due to care 277-18061455

An agreement may contain a clause that determines the rate of child support payable if care changes, and the payee is still an eligible carer with at least 35% care of the child.

The terms of the agreement will determine what event or circumstances will cause a care change clause to be activated. See Table 1, Step 10 in Managing changes affecting a Child Support agreement.

An agreement may contain a clause that allows the roles of carer entitled to child support and liable parent to swap in the event of a care change for a child. The role swap clause will be activated when the level of care (as specified in the agreement) is applied in the assessment.

If the clause is activated, the agreement will not be suspended or terminated if the payee ceases to be an eligible carer of the child. Instead child support as specified by the agreement will become payable to the other parent. See Table 1, Step 14 in Managing changes affecting a Child Support agreement.

If there has been a section 12 terminating event in respect of the child, see Terminating events (Stage 2) and Ending a Child Support agreement.

If the payee under the agreement ceased to be an eligible carer of a child prior to 1 July 2018 (15 May 2019 for WA ex-nuptial cases) and they are still not an eligible carer on 1 July 2018 (15 May 2019 for WA ex-nuptial cases), go to Table 5.

If the payee under the agreement ceases to be an eligible carer of a child on or after 1 July 2018 (15 May 2019 for WA ex-nuptial cases), go to Table 2.

Where both parties are eligible carers, an agreement may provide that each parent is liable to pay child support under the terms of the agreement. For example, the agreement may state that each parent is to pay, by way of non-periodic child support, 50% of the child/ren’s school fees. Such agreements may be treated as if it were one agreement, or two separate agreements.

Where both parents are liable parents and receiving parents according to the terms of the agreement, one parent ceasing to be an eligible carer may impact all of the obligations within the agreement, or only the obligations payable to the parent who is no longer an eligible carer. This is dependent on whether or not the agreement is treated as one agreement, or two separate agreements.

An agreement that includes clauses for both parents to pay child support (periodic and/or non-periodic) should generally be treated as if it is one single agreement, unless:

• the agreement specifically states that, in the event one parent ceases to be an eligible carer, only the payments payable by the other party will be suspended, or
• both parents agree that their intention is that only the payments payable by the other party will be suspended. Contact both parents to confirm their intention.

In such cases, the payments payable to the party who is no longer an eligible carer will be suspended, and the payments payable by the other parent will continue to be in force.

In all other cases, the agreement will generally be treated as a single agreement, and all payments, payable by both parents, will be suspended in the event that one parent ceases to be an eligible carer.

A child support agreement is suspended if the payee under the agreement ceases to be an eligible carer for 28 days or less, or 26 weeks in certain circumstances. If the care change is processed:

• within 28 days of the date it applies in the assessment, go to Step 3
• or if outside 28 days, go to Step 4

If a care determination is made that a payee has less than 35% care and it is processed within 28 days from the date the care percentage applies in the assessment, the agreement will be suspended for the child for 28 days, or for 26 weeks if the agreement includes a clause for a longer suspension period.

When the new care percentage is processed in the system, letters will be sent to the customers to advise them that the care change has affected their agreement and Services Australia will contact them to explain the impacts.

Agreement has longer suspension clause

If the agreement has a clause for a longer suspension, Cuba will suspend the agreement for 26 weeks. The agreement entitlement end reason will be set to ‘SUSPEND 26W’ and an Agreement Care Review intray will route to the Agreements and Court Order team for action.

Send a MSE1-7 Agreement Suspension Applied letter to all parties of the agreement, to advise a 26 week suspension period applies. See Letters Cuba Process Help. When all required action is complete, delete the Agreement Care Review intray.

Go to Table 3.

Agreement does not have longer suspension clause

If the agreement does not have a clause for a longer suspension, Cuba will suspend the agreement for 28 days. The agreement entitlement end reason will be set to ‘SUSPEND 28D’ and an Agreement Care Review intray will route to the Agreements and Court Order team for action.

Send a MSE1-7 Agreement Suspension Applied letter to all parties to the agreement. When all required action is complete, delete the Agreement Care Review intray.

Customer contact

Contact all parties to the agreement to explain that they can request a longer 26 week suspension. Advise the customers that if all parties agree and the longer suspension applies, the agreement will restart if care changes again during the suspension period and the payee under the agreement has at least 35% care of the child.

If all parties agree to the longer suspension, record the longer suspension in Cuba. The agreement entitlement end reason will be set to ‘SUSPEND 26W' and an Agreement Care Review intray will generate. Send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties to the agreement. See Letters Cuba Process Help. When all required action is complete, delete the Agreement Care Review intray.

If all parties do not agree to the longer suspension, Child Support can still apply a longer suspension if special circumstances apply in relation to the change in care. See the Child Support Guide Chapter 2.7.6: Suspending a Child Support Agreement for examples of when special circumstances may apply, a link is on the References page.

• If it is determined that there are special circumstances, record the longer suspension in Cuba. The agreement entitlement end reason will be set to ‘SUSPEND 26W’ and an Agreement Care Review intray will generate. Document the contact with the customers and the reason for the decision in a notepad. Send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties. When all required action is complete, delete the Agreement Care Review intray
• If a party to the agreement asks that Services Australia consider special circumstances but it's determined that special circumstances do not apply, document the contact with the customers and the reasons for the decision in a notepad. Send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties
• If a longer agreement suspension does not apply and the child has not returned to the original payee’s care by the end the 28 day suspension period, Cuba will pend the agreement termination for the child, see Table 3, Step 1

If a care determination is made that a payee has less than 35% care and it is processed more than 28 days (but less than 26 weeks) from the date the care percentage applies in the assessment:

• the agreement will be suspended for the child for 26 weeks if the agreement includes a clause for a longer suspension period, or
• if the agreement does not have a clause for a longer suspension, the agreement termination will be pended

When the new care percentage applies in the system, letters will be sent to the customers to advise them that the care change has affected their agreement and we will contact them to explain the impacts.

Agreement has longer suspension clause

If the agreement has a clause for a longer suspension:

• Cuba will suspend the agreement for 26 weeks
• the agreement entitlement end reason will be set to ‘SUSPEND 26W’ and an Agreement Care Review intray will route to the Agreements and Court Order team for action
• send a MSE1-7 Agreement Suspension Applied letter to all parties to the agreement to advise a 26 week suspension period applies
• when all required action is complete, delete the Agreement Care Review intray
• go to Table 3, Step 2

Agreement does not have longer suspension clause

If the agreement does not have a clause for a longer suspension

• Cuba will pend the agreement termination
• the agreement entitlement end reason will be set to ‘AGR PEND TERM’ for 28 days and an Agreement termination pending intray will route to the Agreements and Court Order team for action

See Table 3, Step 1.

Customer contact

Contact all parties to the agreement to explain that their agreement will end for the relevant child but they can request a 26 week agreement suspension period. Advise the customers that if all parties agree and the 26 week suspension applies, the agreement will restart if care changes again during the suspension period and the payee under the agreement has at least 35% care of the child.

If all parties agree to the longer suspension, then record the longer suspension in Cuba. The agreement entitlement end reason will be set to ‘SUSPEND 26W’ and an Agreement Care Review intray will generate. Send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties to the agreement, advising that the 26 week suspension period applies. When all required action is complete, delete the original Agreement termination pending intray and the Agreement Care Review intray.

If all parties do not agree to the longer suspension, send:

• a MSE1-3 26 Week Agreement Suspension Decision letter advising that the 26 week suspension period does not apply, and
• a MSE1-5 Agreement Termination letter advising the agreement has been terminated. See Letters Cuba Process Help

Delete the original Agreement termination pending intray.

Go to Table 3.

If all parties do not agree to the longer suspension, Child Support can still apply a longer suspension if special circumstances apply in relation to the change in care. See the Child Support Guide Chapter 2.7.6: Suspending a Child Support Agreement for examples of when special circumstances may apply, a link is on the References page.

If it is determined that there are special circumstances, record the longer suspension in Cuba. The agreement entitlement end reason will be set to ‘SUSPEND 26W’ and an Agreement Care Review intray will generate. Document the contact with the customers and the reason for the decision in a notepad and send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties to the agreement, advising that the 26 week suspension period applies. When all required action is complete, delete the original Agreement termination pending intray and the Agreement Care Review intray. Go to Table 3, Step 2.

If a party to the agreement asks that Services Australia consider special circumstances but it is determined that special circumstances do not apply, document the contact with the customers and the reasons for the decision in a notepad. Send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties to advise a longer suspension does not apply. Delete the original Agreement termination pending intray.

If a longer agreement suspension does not apply, Cuba will end the agreement at the end of the 28 day pended agreement termination period.

Go to Table 3.

When an initiating binding agreement is suspended for a child, any party to the agreement can make a section 151 election to end their assessment. Like other section 151 elections, the assessment will end from a specified day in the future, see Ending a Child Support assessment.

A customer can make the election on the phone, in writing, or by using the Ending a child support assessment form.

Liable parent election

A liable parent may only elect to end the assessment if the agreement is an initiating agreement and the election is made on a day when the agreement is suspended.

Document the election in a Cuba notepad and send a manual UQ120.05 Election to end an agreement based assessment letter.

Payee election

If the payee under the agreement makes the election on a day when the agreement is suspended, record the election in Cuba in a notepad and send a manual UQ120.05 Election to end an agreement based assessment letter.

If the payee makes an election to end their assessment at any other time, process the election like any other section 151 election, see Ending a Child Support assessment. The system will generate the appropriate letters.

See Managing changes affecting a Child Support agreement for further information about the effect of section 151 elections on child support agreements.

Note: after the election to end the assessment has been accepted and a terminating event has occurred, either parent/carer can then apply for an administrative assessment for the child.

If the same customer who elects to end the assessment also applies for an administrative assessment, the agreement will continue to be in force. The agreement will no longer be classified as an initiating agreement with an agreement-based assessment. Instead, it will modify the underlying administrative assessment If the agreement is still suspended when the application is made, the new child support assessment for the child will be based on the formula.

If the care of the child changes before the suspension period ends and the payee under the agreement is again an eligible carer of the child, the agreement will restart and will modify the underlying administrative assessment. An Agreement Care Review intray will generate and route to the Agreements and Court Order team if the agreement restarts, go to Step 6.

An agreement will restart for a child if the payee under the agreement again becomes an eligible carer of the child on or before the end date of the agreement suspension period.

The agreement will restart from the date the care percentage is used in the assessment (for example when the payee under the agreement again becomes an eligible carer).

When the new care percentage applies in the system, letters will be sent to the customers to advise them that the care change has affected their agreement and Services Australia will contact them to explain the impacts.

The system will remove the Agreement entitlement end reason of SUSPEND 28D or SUSPEND 26W (as applicable) and route an Agreement Care Review intray to the Agreements and Court Order team.

The Agreements Service Officer will review the case and:

• escalate the case to the Service Support Officer (SSO) if the overall Cuba case ended when the agreement was suspended. The SSO will use the case fix function to extend the Agreement entitlement end date to match the end date of the agreement
• check to make sure all relevant clauses have been updated where required for the relevant child/ren
• send MSE1-4 Agreement Restarted letters to all parties. See Letters Cuba Process Help
• when all required action is complete, delete the Agreement Care Review intray

A child support agreement may be made between more than 2 parties if a non-parent carer is assessed to receive child support. In the same way as agreements with 2 parties, these agreements need to be suspended or terminated if a person entitled to receive child support under the agreement ceases to be an eligible carer of a child.

Due to system limitations, the functions and processes for suspending or terminating an agreement will only apply to the Cuba case where the payee ceased to be an eligible carer.

When the relevant intray is routed to the Agreements and Court Order team, the Service Officer should review the case to see if there are more than 2 parties on the agreement and, if there are, escalate the case to the SSO to manually process the suspension or termination on all other affected Cuba cases.

If an agreement does not have a longer suspension clause, before it is terminated due to a care change, the termination will first be ‘pended’ by Cuba for 28 days to allow contact with the customers to discuss whether they want to request a longer suspension or if there are special circumstances concerning the care change to allow a longer suspension.

An agreement termination will be pended in the following circumstances:

• a 28 day suspension period ends
• a care determination is made that a payee has less than 35% care and it is processed more than 28 days from the date the care percentage applied in the assessment

Note: if a care determination is made and it is processed more than 26 weeks after the care change, the agreement termination will not be pended.

When the agreement termination is pended, an Agreement termination pending intray will route to the Agreements and Court Order team for the following action:

• contact all parties to the agreement to explain their options for a longer suspension, if contact has not already occurred
• if a longer suspension then applies, record the longer suspension in Cuba. The agreement entitlement end reason will be set to ‘SUSPEND 26W’ and an Agreement Care Review intray will route to the Agreements and Court Order team for action. Send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties to the agreement. See Letters Cuba Process Help
• when all required action is complete, delete the applicable Agreement termination pending or Agreement Care Review intray

An agreement will end:

• at the end of a 26 week suspension period
• at the end of a pended termination period, or
• if a care determination is made that a payee has less than 35 per cent care and it is processed more than 26 weeks after the care change

Cuba will terminate the agreement with effect from the date that the payee under the agreement ceased to be an eligible carer of a child.

The agreement entitlement end reason will be set to AGR TERMINATED. An Agreement Termination intray will route to the Agreements and Court Order team to send a MSE1-5 Agreement Termination letter to all parties to the agreement. See Letters Cuba Process Help. When all required action is complete, delete the Agreement Termination intray.

Customers are able to make a joint request for a longer 26 week suspension at any time after the payee under the agreement originally ceased to be an eligible carer until 26 weeks after that date.

If an agreement is terminated for a child due to a care change and all parties then request a longer suspension period within the required 26 weeks, then record the longer suspension in Cuba. The agreement entitlement end reason will be set to ‘SUSPEND 26W’ and an Agreement Care Review intray will generate. Send a MSE1-3 26 Week Agreement Suspension Decision letter to all parties to the agreement. When all required action is complete, delete the Agreement Care Review intray.

Note: a longer suspension can apply even if the child has since returned to the original payee’s care and they are an eligible carer during the 26 week period. In those cases, apply the longer suspension period from the date the payee ceased to be an eligible carer and restart the agreement for the child from the date the payee again became an eligible carer, go to Table 2, Step 6.

See the Resources page for examples.

If an agreement did not initiate the child support case (an application for assessment was received prior to the agreement being accepted), child support will be payable under a formula assessment when the agreement is suspended or if the agreement ends for a child.

Note: if the agreement has ended or been suspended in respect of one child, but the agreement continues to apply to another child of the same child support case, a mixed assessment adjustment may be needed on that case or a reverse case may need to be created if the overall roles of the parents change. See Complex system processing for reverse child support cases.

If a parent has another child support case(s), the child for whom the agreement is suspended or ended will automatically be assessed as a multi-case child. This is because the parent will continue to be assessed as to the costs of the child under the formula based underlying assessment, which will continue to apply from the date the non-initiating agreement is suspended or ended.

However, the child will not be assessed as a multi-case child if a care suspension period applies, see the Child Support Guide Chapter 2.10.4: Suspension of Liability to Pay Child Support when there is a Change in Eligible Carer, see References page.

If the agreement initiated the child support case (there was no assessment in place before the agreement was accepted), no child support will be payable for the child when the agreement is suspended or if the agreement ends.

If a parent has another child support case(s):

• the child for whom the agreement is suspended or ended will not be assessed as a multi-case child in those case(s)
• during an agreement suspension period for an initiating agreement, the parents are not assessed in respect of the costs of the child in an assessment (therefore the child will not be a multi-case child)
• the child will be a relevant dependent child of the parent who is the eligible carer. Note: manual processing is required to add the child as a relevant dependent child to all applicable cases. See Updating Child Support Customer information

If an initiating agreement is suspended for a child/ren, the customers are not able to apply for an administrative assessment for the child and receive child support under the formula until one of them has first elected to end their current agreement-based assessment. Go to Table 2, Step 5.

If an initiating agreement is terminated for a child/ren due to a care change, advise the customers that they can apply for an administrative assessment for the affected child/ren.

If the agreement started the child support case (for example the agreement is an initiating binding agreement):

• check the case to see if an underlying administrative assessment registration has been incorrectly recorded for the child
• if required, escalate to a SSO to remove the incorrect underlying administrative assessment registration

If an agreement made prior to 1 July 2018 sets a periodic rate per case (via a formula modification) and the agreement does not specify how the rate should be apportioned, the rate payable as at 30 June 2018 (or 14 May 2019 for WA ex-nuptial cases) needs to be apportioned equally between the children who were assessed on the agreement as at 30 June 2018 (14 May 2019 for WA ex-nuptial cases).

Note: for WA ex-nuptial cases, apportionment only applies from 15 May 2019.

Escalate the case to an SSO to ensure the rate apportionment occurs correctly and children are correctly recorded in the case. This involves deleting the formula modifications on the agreement from the registration start date and re-entering them as formula modification clauses per child (to reflect an apportioned periodic rate per child).

See Interpreting and making a decision on a Child Support agreement, Periodic amounts per child for examples of correct apportioning with effect from 1 July 2018.

If the customer has another child support case:

• ensure any child affected by an agreement suspension or termination is correctly recorded as a relevant dependent child or a multi-case child, as applicable
• if applicable, this will also include recording the child as a relevant dependent child in a provisional notional assessment, see Table 6

Additional processing will be required for agreements that include more than 2 parties (for example, they include one or more non-parent carers) go to Table 2, Step 7.

When multiple care records are processed on an agreement in Cuba on the same day, or care records are processed with a start and end date in the past, an Agreement Multi Care Change intray will generate and route to the Agreements and Court Orders team.

Do the care changes result in a care percentage reducing below or increasing above 35%, or a role swap clause being activated/de-activated?

• Yes, escalate to a SSO to manually process the relevant events and issue manual letters to the customers
• No, delete the intray, no further processing required

The agreement entitlement end reason will not update in the system and the relevant agreement intray will not generate if a terminating event occurs while an agreement is:

• suspended, or
• a role swap clause is active, or
• an agreement termination is pending

The agreement end status will still display as SUSPEND 28D, SUSPEND 26W, ROLE SWAP, or TERM PEND. Manual letters will not be sent to the customer as an intray will not generate. However, the assessment for the affected child will end correctly due to the terminating event.

Did the terminating event result from a section 151 election?

• Yes, the agreement will not end. If the case re-starts for the child:
• check the status of the agreement to determine whether a suspension period or a role swap clause still applies
• No, the agreement will end. If the case re-starts for the child,
• do not reinstate the agreement (even if the agreement end reason is showing as SUSPEND 28D, SUSPEND 26W, ROLE SWAP, TERM PEND as the status was not previously updated to AGR TERMINATED).

An agreement will be suspended or terminated if:

• the payee under the agreement ceased to be an eligible carer of a child prior to 1 July 2018 and
• the payee was still not an eligible carer as at 30 June 2018.

The agreement will be suspended or terminated from 1 July 2018.

For WA ex-nuptial children, an agreement will be suspended if:

• the payee under the agreement ceased to be an eligible cares before 15 May 2019 and was still not an eligible carer as at 14 May 2019, and
• The payee ceased to be eligible carer for at least 28 days between 1 July 2018 and 15 May 2019 and has not resumed being an eligible carer as at 15 May 2019.

The agreement will be suspended or terminated from 15 May 2019.

These agreement suspension and terminations are processed depending on how Child Support gave effect to the original care change when it occurred, and the date when the payee under the agreement ceased to be an eligible carer.

Note: Cuba will process agreement suspensions and terminations only if the payee under the agreement ceased to be an eligible carer of a child on or after 1 July 2018. Additional manual processing will be required if the care change applied prior to 1 July 2018. Manual steps required are referred to in the steps below. If more detailed information is required, see Resources under ‘Agreements manual processing from 1 July 2018'.

References to the payee under an agreement ceasing to be an eligible carer means the date the payee’s care percentage of less than 35% applies in the child support assessment, according to the relevant date of effect rules for changes in care.

If the care change happened before 1 July 2018 and was notified:

• before 30 December 2018, the pre 1 July 2018 date of effect rules will apply
• after 30 December 2018, the new 1 July 2018 date of effect rules will apply.

For WA ex-nuptial cases if a care change occurred or is reported on or after 15 May 2019, the new care date of effect rules apply.

If the agreement continued to be payable after 1 July 2018 by using a Stage 1 workaround, go to Step 2.

If the agreement was not continued after the payee ceased to be an eligible carer, go to Step 3

In all other cases, go to Step 4

From December 2014 it was Child Support policy that where a payee under an agreement ceased to be an eligible carer of a child and the agreement did not include any clauses that addressed care changes, the liable parent under the agreement would still be required to pay the relevant child support liability under the agreement to the payee for that child.

Due to system limitations and in order for the correct liability to continue to be payable, these agreements were processed in Cuba as a Stage 1 Court order/agreement liability from the date of effect of the care change.

If one of the cases is identified where a Stage 1 liability still applies after 1 July 2018, refer the case to the Agreements team to take the following actions:

• Agreements Service Officer to check with SSO to confirm whether the Stage 1 liability should be ended. If so contact the customer by phone to advise them that the agreement will be suspended or terminated for the child as applicable from 1 July 2018 (15 May 2019 for WA ex-nuptial cases). A suspension may be applicable if the care change occurred less than 26 weeks prior to 1 July 2018(15 May 2019 for WA ex- nuptial cases), go to Step 4.
• change the end date of the stage 1 registration to 30 June 2018 (14 May 2019 for WA ex-nuptial cases) and document the reasons in a notepad
• send manual letters advising that the agreement has been suspended or terminated for the relevant child/ren. Select the appropriate manual letter option from the Resources page

Non-initiating agreement

If the agreement is not an ‘initiating’ agreement (for example there was an administrative assessment prior to acceptance of the agreement), child support will be payable for the child under a formula assessment from 1 July 2018 (15 May 2019 for WA ex-nuptial cases).

Note: if the agreement has ended or been suspended in respect of one child, but the agreement continues to apply to another child of the same child support case, a mixed assessment adjustment may be needed on that case or a reverse case may need be created if the overall roles of the parents change. See Complex system processing for reverse child support cases.

Initiating agreement

If the agreement is an ‘initiating agreement’, the child support case for the relevant child/ren will end from 1 July 2018 (15 May 2019 for WA ex-nuptial cases). The customers should be advised they can make an application for an administrative assessment for the child on or after 1 July 2018/15 May 2019.

For information about processing required, depending on the date of effect of the care change, go to Step 4.,

Under previous Child Support policy in effect up until November 2014, if a payee under an agreement ceased to be an eligible carer of the child, Services Australia did not continue to apply the child support agreement, and child support ceased to be payable for that child under the agreement. If the agreement did not initiate the child support case, child support then became payable for the child under the underlying administrative assessment.

These agreements will be suspended or terminated for the child from 1 July 2018 (15 May 2019 for WA ex-nuptial cases). These agreements will already have ended in Cuba with a 'Child Left Payee Care' entitlement end reason.

Agreement cases affected by this previous policy will be identified if and when the payee under the agreement again becomes an eligible carer of the child after 1 July 2018 (15 May 2019 WA ex-nuptial cases), or at any other time as part of processing other case events. The customers should be transferred to the Agreements team for the following actions:

• contact the customers to advise them that the agreement was terminated for the child from 1 July 2018(15 May 2019 for WA ex-nuptial cases). Note: a suspension may be applicable if the care change occurred less than 26 weeks prior to 1 July 2018 (15 May 2019 for WA ex-nuptial cases). Go to Step 4
• record in a notepad that the agreement has terminated from 1 July 2018 (15 May for WA ex-nuptial cases), including the reasons, and that the agreement will not be reapplied should there be a subsequent care change. The agreement will already be ended in Cuba with a ‘Child Left Payee Care’ entitlement end reason
• send manual letters, see Resources advising that the agreement has been terminated for the relevant child/ren.

Non-initiating agreement

If the agreement is not an initiating agreement (there was an administrative assessment prior to acceptance of the agreement), child support will continue to be payable for the child under a formula assessment.

Initiating agreement

If the agreement is an initiating agreement, the child support case for the relevant child/ren will end. The customers should be advised they can make an application for an administrative assessment for the child.

If a formula assessment applied to the child when the original care change occurred (under the previous policy to November 2014) this will be treated as an error correction. The error will generally be corrected prospectively only for example from the date the payee under the agreement again becomes an eligible carer after 1 July 2018 (15 May 2019 ex-nuptial cases) or the date the agency identifies the error as part of processing other case events. This is because the decision to apply the formula when the original care change occurred was in accordance with the policy that applied at the time.

Escalate the case to a SSO to consider the error correction and to remove the incorrect underlying assessment registration from the relevant date, see Correcting errors on Child Support cases.

Contact the customers to advise that the child support case for the child will end from the relevant date, and that they can make an application for an administrative assessment.

Send manual UQ120.04 Agreement Termination letter to the customers.

Go to Step 4 for information about processing required, depending on the date of effect of the care change.

An agreement termination due to a pre 1 July 2018 care change can only take effect from 1 July 2018 (15 May 2019 for WA ex-nuptial cases).

There are some circumstances where an agreement suspension can apply due to a pre 1 July 2018/ 15 May 2019 care change. Such a suspension can also only take effect from 1 July 2018/15 May 2019. However, the suspension end date will depend on:

• the date the payee ceased to be an eligible carer
• whether a 28 day or a 26 week suspension period applies, and
• whether the payee resumed being an eligible carer during the suspension period.

Note: Consult a SSO for guidance before processing any suspension or termination due to a pre 1 July 2018/15 May 2019 care change.

If the payee ceased to be an eligible carer more than 26 weeks prior to 1 July 2018/15 May 2019:

No suspension period can be applied. The agreement will terminate for the child from 1 July 2018. (15 May 2019 for WA ex nuptial cases.)

The Agreements team Service Officer will send a manual UQ120.06 Existing Agreement suspension or termination letter to the customers, advising that the agreement has ended.

If the payee ceased to be an eligible carer more than 28 days but less than 26 weeks prior to 1 July 2018/15 May 2019:

A 28 day suspension period could not apply. However, a longer suspension period could potentially apply. Contact the customers to determine if a 26 week suspension period should apply. See The Child Support Guide 2.7.6 Suspending a Child Support Agreement.

If applicable, the suspension period could only apply from 1 July 2018/15 May 2019 until the date 26 weeks after the date the payee ceased to be an eligible carer. The suspension period may end earlier if the payee resumed care in that period. If so, the agreement liability would need to be manually restarted from the effective date of the payee resuming care. See Agreement manual processing from 1 July 2018.

If no suspension period applies OR if the payee did not resume care during the suspension period, the agreement will terminate from 1 July 2018/15 May 2019.

To explain the outcome, see Contact with Child Support customers. Manual letters will also be required. To select the appropriate manual letter option/s, see the Resources page.

If the payee ceased to be an eligible carer within 28 days prior to pre 1 July 2018/15 May 2019:

A 28 day suspension period would apply. A longer suspension period could potentially apply. Contact the customers to determine if a 26 week suspension period should apply. See The Child Support Guide 2.7.6 Suspending a Child Support Agreement

The suspension period could only apply from 1 July 2018/15 May 2019. It would end on the date 28 days OR (if applicable) 26 weeks after the date the payee ceased to be an eligible carer. The suspension period may end earlier if the payee resumed care in that period. If so, the agreement liability would need to be manually restarted from the effective date of the payee resuming care. See Agreement manual processing from 1 July 2018.

If the payee did not resume care during the suspension period, the agreement will terminate from 1 July 2018/15 May 2019.

To explain the outcome, see Contact with Child Support customers. Manual letters will also be required, select the appropriate option/s, see the Resources page.

A new provisional notional assessment (PNA) will issue if the rate payable under an agreement changes by more than 15%, see Notional assessment relating to child support agreements.

If an agreement is suspended or terminated in relation to a child and there are child/ren who remain on the agreement, the agreement rate payable by the original liable parent will usually change by more than 15% and a new PNA will generate for the child/ren remaining on the agreement.

When the PNA converts to a notional assessment the payee’s FTB Part A (for the children for whom the agreement is not suspended) will be calculated on the amount of child support that would have been payable for those children if the agreement was not in place.

If the agreement is not an initiating agreement, the PNA should reflect the formula assessment that would otherwise be payable for the children remaining on the agreement (if the agreement was not in place), with all children of the case taken into account under the formula calculations (if there is a delayed care notification under the new care date of effect rules, both the decreased and increased percentage of care will apply in the PNA when it generates at that time).

If the agreement is an initiating agreement, the PNA should reflect the formula assessment that would otherwise be payable for the children remaining on the agreement (if the agreement was not in place), with only those children taken into account under the formula calculations (the child leaving the payee’s care is not assessed under the formula while the initiating agreement is suspended/terminated).

If a new PNA generates and the agreement terminates for a child before the notional assessment (NA) issues, the NA should still reflect the above.

See the Resources page for examples.

If there is only one child on the agreement when it is suspended or terminated (or all children on the agreement are affected by the suspension or termination), information will be exchanged with Centrelink indicating that the child/ren is ‘inactive’ on the case with the original payee. The original payee under the agreement will not be eligible for FTB Part A for the child/ren and a NA will not be relevant for FTB purposes.

If the child/ren returns to the original payee’s care during a suspension period and the agreement restarts, information will be exchanged with Centrelink indicating that the child/ren has an active status.

• If there was only one child on the agreement or if all children affected by the suspension return to the original payee’s care, a new PNA will not issue as the agreement rate has not changed by more than 15% and the previous NA will therefore be applicable for the child/ren
• If only one child returns to the original payee’s care and other child/ren remain affected by the agreement suspension, a new PNA will usually issue in relation to the child/ren who has returned the payee’s care because the agreement rate will usually change by more than 15%