WA ex-nuptial child support cases - Ending a Child Support assessment 277-18061529

A payee entitled to child support can elect to end their child support assessment verbally, electronically, by completing an Ending a child Support assessment (CS1671) or otherwise in writing. A carer can elect to end an assessment for a child from a specified day (Child Support (Assessment) (CSA) Act section 151). The specified day must be a day after the election to end the assessment is made (CSA Act section 12(4).

If a payee or their current partner is receiving, or is entitled to receive more than the base rate of Family Tax Benefit (FTB) Part A, the election to end must be approved by Centrelink. If the payee is not entitled to more than the base rate of FTB Part A, approval is not required.

Although a payee has elected to end an assessment, they may be notifying Child Support of a terminating event or requesting private collection. See WA ex-nuptial child support cases - Terminating Events (Stage 2) notified before 15 May 2019 or Collecting child support payments privately and/or discharge arrears.

Where the payee is not on the phone, contact them to discuss the election to end their child support assessment.

An election to end a Child Support assessment is considered a sensitive process. Conduct additional identity checks to protect the customer’s personal information.

See Authenticating a Child Support customer for information about how and why authentication is conducted.

When an election to end is received, discuss with the payee the reason they are electing to end.

Common reasons for electing to end an assessment include:

• Family and domestic violence, go to Step 4
• Payer not a parent, go to Step 5
• Reconciliation, go to Step 6

Note: the payee may also elect to end the case as a matter of personal choice where none of the above reasons apply. If the payee receives more than the base rate of FTB Part A, see Table 2, Step 1 to check if they are in receipt of more than the base rate FTB Part A and seek Centrelink approval.

If Centrelink does not approve the election, contact the payee and advise that the assessment cannot end. See Table 3, Step 9.

If the payee is not in receipt of more than the base rate of FTB, go to Step 7.

If a payee elects to end their case because of family and domestic violence, check if they are in receipt of more than the base rate FTB Part A. If the payee is not in receipt of more than the base rate of FTB, see the below information on Processing an election to end for customers affected by family and domestic violence.

If the payee receives more than the base rate of FTB, an election to end can only be actioned after they have obtained an exemption from seeking maintenance from the other parent. Advise them that they need to discuss the exemption with a social worker and offer to warm transfer to Centrelink to make an appointment with a social worker.

If Centrelink approve the election to end, the case will be ended in accordance with the payee's initial election. There is no need for the payee to make a subsequent election.

If there are delays in Centrelink granting the election, when the end election is processed be sure to check for any overpayments. If there is an overpayment then see Overpayments and payee debt. If Centrelink does not approve the election, contact the payee and advise that the assessment cannot end. See Table 3, Step 9.

See Family and domestic violence when family and domestic violence is an issue. See also the Child Support Guide 1.7: Family Violence for more information.
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Centrelink exemption granted prior to payee making an election to end

If a department social worker grants a payee an exemption, the payee must first elect to end the assessment before it can be ended. If the payee has been granted an exemption but has not yet made an election, contact the payee and invite them to make an election.

If no election is made, the assessment will continue.

Processing an election to end for customers affected by family and domestic violence

Payees are not able to request the case to be ended from a past date. This means that after the case has ended, past assessments based on provisional incomes or estimates will be automatically updated by Cuba when tax returns are lodged. This may create arrears or overpayments on the case and trigger letters to the customers. This could place vulnerable payees in unacceptably high risk situations.

Where assessments are based on provisional incomes or estimates and the payee requests child support:

• do not collect arrears (for example, they have retrospectively opted out or discharged the arrears), 'Manual periods' can be used to prevent reassessments after the case has ended for family violence reasons. Delete letters produced after the manual formula modification is set in place. This will ensure no letters are issued to the customers after the case has ended
• continue to collect arrears, 'Manual periods' will not be applied to the assessments as the payee has elected for the arrears to be collected and there is a need to ensure the accuracy of any debts that are pursued

Note: ensure that the payee understands that an election to end does not preclude either party from lodging an application for child support assessment in the future. If the payer reapplies for a child support assessment this will reactivate the ended case. This does not prevent the payee from ending the case again based on the Centrelink exemption.

In situations of family and domestic violence and regardless of the payee's Centrelink entitlement, do not contact the payer.

Process end:

• Check all assessments from the start date of liability to identify periods where a provisional or estimate of income is used including periods with a COA or Agreement that varies the annual rate under a formula assessment
• Advise the payee that those assessment periods will not be reassessed when tax returns are lodged
• Record a 'formula modification' on Cuba with a 'manual period' and the Annual Rate set equal to the assessed amount for each of these periods. Delete letters produced after the manual formula modification is set in place
• If payee requests arrears to be discharged, process discharge

Process discharge:

• There is no 'cooling off' period for payees who elect to discharge arrears due to reasons of family violence and have obtained an exemption from Centrelink
• Discharge arrears by amount in the Discharge Arrears window.

The 'opt out' date should not be applied from a date in the past. Retrospectively changing the collection method to private collect means the full Child Support assessment will be deemed as received for FTB purposes and this will generate FTB debts

• Select reason for discharge as END - PYE ELECT

Record the end:

• The end date can be recorded as the date on which the payee makes the election to end. The assessment will end on the day after the election is made
• Run and save eligibility only after the Service Officer is satisfied that assessment periods have not been amended for any reason

Document actions in the Case window.

Notify customers in writing.

The payee may elect to end their assessment because they believe the payer is not the parent, but they have not obtained a parentage declaration (under section 107).

If a payee elects to end their case because the payer is not a parent, see Table 2, Step 1 to check if they are in receipt of more than the base rate FTB Part A and seek Centrelink approval. If the payee is not in receipt of more than the base rate of FTB, go to Step 6.

Generally, Centrelink will only approve the end if the payee:

• is simultaneously applying against the parent of the child
• is applying for an exemption, or
• has applied for an exemption

If Centrelink does not approve the election, contact the payee and advise that the assessment cannot end. See Table 3, Step 9.

The payee or payer may advise that they have reconciled with the other parent. When a customer advises they have reconciled, suspend the liability from the date of reconciliation. See Assessments Cuba Process Help for more detail.

If the customers remain reconciled for a period of 6 months, their case will end. See WA ex-nuptial child support cases - Terminating Events (Stage 2) notified before 15 May 2019.

If the customer wishes to end their case before the terminating event and they receive more than the base rate of FTB Part A, see Table 2, Step 1 to check if they are in receipt of more than the base rate FTB Part A and seek Centrelink approval. If the payee is not in receipt of more than the base rate of FTB, go to Step 6.

If Centrelink does not approve the election, contact the payee and advise that the assessment cannot end. See Table 3, Step 9.

If the customer has not notified Centrelink of their reconciliation, warm transfer the customer.

If the payee wishes to continue with the election to end, explain:

• What may happen if the assessment is based on a provisional or estimate of income, go to Step 8
• Options available to them if there are arrears owing, go to Step 9
• The election to end does not stop them applying in the future for an assessment
• The specified end date must be a date after the election to end the assessment is made

Note: as an assessment must end on a date after the election is made, the end date in Cuba must be recorded as the day before the intended assessment end date.

When an end date is recorded in Cuba, the assessment will end on the following date. For example, if an end date of '1 June' is keyed in the end date field in Cuba, the assessment will end effective 2 June.
The Notification Date field must be '1 June' and the Date Liability Ends On field also will be '1 June'. This means that if a payee makes an election on 1 June to end their assessment, this will result in the assessment ending effective the following day, that is, 2 June.

International: if the customer resides overseas in a reciprocating jurisdiction, and the application for the assessment was made by the Central Authority on behalf of that customer, confirm with the Central Authority of that country before the case can be ended. Write a letter to the Central Authority outlining the payee's request, and seek their approval to end the case.

If contact with the customer by telephone has been unsuccessful or they have not responded to the 'please contact letter' and a specific end date cannot be confirmed with either parent, Centrelink or other external sources, do not proceed with the election. See Contact with Child Support customers.

Document the decision in the Case window detailing the reasons for not accepting the election.

Advise the payee that an assessment based on a provisional income or an estimate of income may be later updated causing a change to the assessment and possibly arrears or overpayment.

Check for any unreconciled estimates and provisional incomes. Advise the customer that regardless of the fact that the case is ending, we will reconcile these estimates and replace provisional incomes once the relevant income tax assessments become available. This could mean changes to the child support assessment and account resulting in arrears or an overpayment.

Note: estimates are automatically reconciled when a customer's income tax assessment is issued for the relevant year. Encourage customers to lodge tax returns on time each year because it means that their estimates will be reconciled promptly.

See the Income Processing for Child Support customers and Child support estimates review (post 1 July 2010) for more information.

The payee may:

• leave arrears owing for collection
• discharge the arrears and collect them privately, or
• pursue collection of arrears through court, under section 113A of the Child Support (Registration and Collection) Act 1988

If the payee is in receipt of FTB Part A and elects to discharge the arrears and collect them privately, explain to the payee that Centrelink will include the non-paid arrears amount when assessing their FTB for the financial year in which the arrears are discharged.

Advise the payee:

• To discuss the possible impact on their FTB payments with Centrelink before discharging the arrears, and
• An additional 7 days will be provided, in writing, in which to consider their decision. The payee must contact Child Support within seven days of the date they receive this letter if they no longer wish to discharge the arrears

For more information on discharging arrears, see Collecting child support payments privately and/or discharging arrears.

Inform the payee that an update to either customer's income/estimate could affect the level of arrears or create overpayments. Advise that contact will be made with them should that occur.

To establish if a payee is entitled to Centrelink benefits, go to the Benefits window in the Client section of Cuba to identify the type of benefit.

Request further information from Centrelink:

• to ascertain if the payee is receiving more than the minimum rate if the Benefits window indicates that they receive Family Tax Benefit (FTB)
• to ascertain if the payee's current partner is receiving more than the minimum rate
• if there is no existing record of Centrelink benefits, or
• if the Cuba data may be inaccurate

See Centrelink - Child Support information exchange for guidance.

Go to Step 2.

If the payee or their current partner is entitled to more than the base rate of FTB Part A, Centrelink approval is required. Complete the Centrelink/Child Support information exchange macro. See Centrelink - Child Support information exchange for guidance.

If the election is approved, see Table 3, Step 6.

If Centrelink does not approve the election, contact the payee and advise that although payee can elect to end the assessment their FTB for the relevant child or children would be reduced to the base rate of FTB. See Table 3, Step 9.

In situations of family and domestic violence and regardless of the payee's Centrelink entitlement, do not contact the payer. After obtaining approval (if required), see Table 1, Step 3 to process the election to end due to family violence.

In situations of family and domestic violence, regardless of the payee's Centrelink entitlement, do not contact the payer. Notify both parties (including Payer by letter only) that application to end has been accepted. After obtaining approval (if required), see Table 1, Step 3 to process the election to end due to family violence.

When contacting the payer in other circumstances, do not discuss the reasons for the payee's decision to end.

Discuss:

• the date the assessment is to end
• any arrears or overpayment remaining
• the effect of any updates to the assessment if it is based on a provisional income or an estimate of income, and
• the effect of care arrangements on FTB

Discuss arrears or overpayments

If there are arrears owing after the end has been processed, negotiate a payment arrangement. See Debt repayment.

If ending the case results in an overpayment, discuss the options:

• the payer may waive the overpayment, or
• collection from the payee will be attempted, and refunding the monies collected

See Overpayments and payee debts or the Child Support Guide 5.5.5: Overpayments. References contains a link.

Correct and discuss the effect/s of provisional/estimated income

If child support assessments are based on either a provisional income or an estimate of income, update the provisional incomes and review any estimates of income, where possible. Advise the payer that the provisional income will be replaced when a taxable income becomes available or may review/reconcile an estimate. This may result in arrears.

See Income Processing for Child Support customers, Child support estimates review (post 1 July 2010) and Child support estimates - Reconcile (pre 1 July 2011).

Discuss effects of care on FTB entitlements

If care of the child/ren is shared or divided and if they are in receipt of FTB for the child/ren in their care; explain that ending the case may affect their FTB entitlement. Advise the payer to discuss this with Centrelink and warm transfer if required.

If the payer is not contactable by phone send the manual UQ5.01 - Potential reconciliation contact letter.

Before ending the assessment, consider if:

• the eligible carer still wishes to end the assessment and has specified a day
• the liable parent is no longer linked to an employer for ongoing child support for the child/ren in question, and
• there are no outstanding issues

Contact the payee again to inform them of any changes to the arrears/overpayment as a result of updating/reviewing the incomes/estimates of each customer, if applicable.

If necessary, reconfirm the specified end date in light of any new information. Ensure that the payee is willing to continue with the election to end.

• If the payee wishes to continue with this election, go to Step 3
• If the payee does not wish to continue with the election, go to Step 9

Check if the payer has employer deductions in place. The payer must be de-linked if:

• the payer has no other case(s)
• the payer has no arrears, or
• the payer has arrears but employer withholding arrears (EWA) payments have not been put in place

If the payer has arrears and EWA payments are not already in place, consider collecting via a section 72A notice to the employer. See Collection of child support debts through third parties (s72A and s72C).

Do not end the employer link if:

• the payer has another case(s) and the employer is deducting child support for that case(s)
• the payer has arrears and EWA payments are in place, and
• it is appropriate that this collection option continues to be used to collect arrears

Check the case for outstanding issues that may affect the child support account, for example, non-agency payment (NAP), agreements. Finalise these outstanding issues before ending the assessment.

For cases with a NAP or Prescribed NAP see Non-agency payment (NAP).

End for all children of the assessment

If the payee has requested that their assessment end for all the children of the assessment, record the election to end in the Case window using the Service Option button. Clearly document the reason for the end. See Documenting Child Support information.

Document the reasons for the decision and reference the legislation used.

For more detail about what to document see Documenting Child Support information.

Note: from 1 July 2008, in cases of family and domestic violence or other s151 exemptions from Centrelink, it is important to end both cases in Cuba that involve the same payer, payee and child/ren irrespective of the parent's role in each case.

Note: ensure the payee understands that this does not preclude either party from lodging an application for child support assessment in the future.

If the payer does apply for a child support assessment this will reactivate the ended case. This does not prevent the payee from ending the case again based on the Centrelink exemption.

End for one child of the assessment

If a payee has requested that the assessment end for only one child of the case, record the election to end in the Child Details window in the Terminating Event section. Clearly document the reason for the end.

Document the reasons for the decision and reference the legislation used.

Note: record the end date as the day before the payee wants the case to end. Cuba ends the assessment on the day after the recorded end date - this accords with current policy.

• Example 1: payee calls on 1 April 2016, and based on current policy payee requests the case to end on 2 April 2016
• The notification date would be keyed as 1 April 2016 and the date liability ends needs to be keyed as 1 April 2016
• This then achieves the requested outcome, that is, liability will be raised for 1 April 2016 and will cease from 2 April 2016 forward
• Example 2: payee calls 1 April 2016 and requests the case to end 15 April 2016
• The notification date would be keyed as 1 April 2016 and the date liability ends needs to be keyed as 14 April 2016
• This then achieves the requested outcome, that is, liability will be raised for 14 April 2016 and will cease from 15 April 2016 forward. Note: Cuba will not allow a future end date to be keyed, therefore if a customer requests a date in the future, as outlined in example 2, the Service Officer will need to create a general follow up in-tray with the due date being the day before the payee wishes the case to end. Cuba will then allow the end to be keyed as outlined in example 2

Note: if a payee is entitled to more than the base rate of FTB Part A, the date entered in Cuba must be the same or later than the date nominated by Centrelink.

After recording the election to end in Cuba, run eligibility, see Eligibility Cuba Process Help. For assistance with reading the results, See the Eligibility window help.

If the details of the assessment are correct, save eligibility.

If the changes to the assessment are not correct, do not save eligibility until corrected. If necessary seek assistance from a Service Support Officer (SSO).

If the payee requests the arrears be discharged create a unique letter using the discharge letter template. See Discharge arrears Cuba Process Help. To ensure the payee has time to consider their decision to discharge arrears they must be given 7 days from the date they receive the letter to contact Child Support if they no longer wish to discharge the arrears (the 'cooling off' period).

Create a Client Call-back intray as a reminder to process the discharge arrears if the payee has not contacted.

Allow the customer time to respond. See Standard response times.

After ending the assessment consider if care arrangements need to be altered. This may include adding a relevant dependent child.

• If the case was ended due to reconciliation and either parent has the child(ren) of the ended case recorded as a relevant dependent, the care of the child should be reflected as being 100% with both parents. See Care Cuba Process Help
• If the case was ended due to reconciliation and either of the parents have another child support case, ensure that the children of the ended case are recorded as relevant dependents. See Updating Child Support customer information
• If the case is ended for a reason other than reconciliation, ensure the children's care and status as relevant dependents are correctly reflected

Application to end assessment accepted

Once the end has been processed in Cuba the following letters are automatically created.

If the case has been ended:

• MEA1-2 - Advise payee accepted application to end assessment
• MEA1-3 - Advise payer accepted application to end assessment

Application to end assessment rejected

If the election has been rejected a MEA2-4 - Assessment Resumed after Reconciliation Unsuccessful letter will automatically issue advising both customers the liability has resumed.

Note: only send the MEA1-1 Advice to payee and payer to advise why their case cannot be ended letter to the parent that applied for the case to end. If contact has been made with the other parent to discuss this application, contact them again to advise the case will not be ended.

Where an assessment is ended due to family and domestic violence it may be necessary to generate manual letters. If the payee has indicated that generating letters may cause difficulties, discuss strategies for managing this with a Service Support Officer (SSO).