Exemptions from seeking child support for Family Tax Benefit (FTB) customers 277-51070090

Step

Description

1

Customer claims FTB for past period

Judy lodges a claim for Family Tax Benefit (FTB) on 1 September 2020 for a child born on 1 October 2019.

A social worker determines an exemption due to fear of violence is appropriate for the full period of the claim. They grant the exemption from 1 October 2019 to coincide with the date the child was born.

Special circumstances do not need to be established for the exemption to be backdated to 1 October 2019 because:

• the exemption was requested in the 2020-21 financial year and
• the social worker is not backdating the exemption to a date before the start of the previous financial year (which would be 1 July 2019)

The date of effect for coding the violence exemption on the Maintenance Action (MNMA) screen would be 1 October 2019.

2

Backdating a child support exemption

Wendy had a child in September 2015 and failed to take maintenance action for the child. Over the years, Wendy was in contact with Services Australia many times advising of the wish to apply for a parentage unknown exemption. Wendy was not aware who the father was. On many occasions, Wendy even attended social worker appointments to request an exemption.

On each occasion, Wendy was advised of the need to provide the child's birth certificate to show that the father was not named. Wendy's FTB increased several times because of these discussions. This was due to Wendy advising the birth certificate would be supplied within the specified timeframe.

In November 2020, Wendy again contacted and requested an exemption. Wendy was again advised of the need to provide the child's birth certificate. In December 2020, Wendy provided the child's birth certificate showing the father was not named.

The social worker assessing Wendy's case requested that the exemption be backdated to the child's date of birth in 2015. The reason is the identity of the father had been unknown from then.

Special circumstances must be established before the exemption can be backdated to the child's date of birth in 2015 because:

• the exemption was requested in the 2020-21 financial year and
• the social worker is recommending the exemption be backdated to September 2015, which is before the start of the previous financial year (1 July 2019)

The case is referred to the Service Support Officer attached to the Smart Centre team to which the Fast Note is mapped. They need to assess a special circumstances period before 1 July 2019.

The Service Support Officer:

• considers all information on the customer's record
• liaises with the referring social worker, and
• determines that special circumstances do not apply

It is clear Wendy was advised verbally and in writing over the previous 5 years what action was required. As a result, the exemption is backdated to 1 July of the previous financial year.

The date of effect for coding the Parentage Unknown exemption on the Maintenance Action (MNMA) screen would be 1 July 2019, the beginning of the previous financial year.

3

Domestic and family violence exemptions and shared care (only one child support case)

In situations where customers share the care of a child or if each parent has one or more children in care, only one child support case exists rather than 2.

Note: a case may be recorded in the Child Support system (Cuba) as 2 cases, but it is legally one case.

If both parties have had their circumstances taken into account for a child support case, both parties are considered to have met the Maintenance Action Test (MAT) for the relevant child/ren.

If no data is electronically received from Child Support to indicate that the child/ren in the payer’s care are meeting the MAT, manually apply the 'MWP' workaround to the relevant children in the child support payer's FTB record.

Note: PPW may be present on the MNMR screens for the child/ren in the payer’s record where PPW conditions have been met. If PPW is present, MWP does not need to be coded.

If the payee has an exemption (such as 'VIO' exemption due to violence) and then becomes the payer, the exemption, that is VIO, no longer applies. The 'MWP' workaround needs to be manually applied from the date the payee became the payer. The customer that was the payer and is now the potential payee needs to apply for child support (PDE needs to be coded from the date the customer is advised to take maintenance action).

Shared care example (alleged perpetrator of violence starts child support case as payee)

Ebony and William share the care of Evie, and have 50/50 care. Ebony was the payee in a child support case, which was ended when Ebony was granted a MAT exemption due to violence (VIO). Recently however Ebony's income has increased substantially, meaning if there were a child support case in place, Ebony could go from being the payee to the payer. There is no violence exemption available where the (potential) payer is the victim. In these circumstances, the (potential) payee retains their obligation to take appropriate maintenance action.

William decides to apply for a child support assessment against Ebony. In this case, Ebony's violence exemption no longer applies because Ebony is no longer the payee. Ebony would continue to pass the MAT in light of the fact that there can only be one child support case.

Divided care example

Samantha and Daniel have 3 children and have an active child support case. Samantha has care of 2 of the children (William and Phoebe) and Daniel has care of one child (Joseph).

Samantha is assessed to pay an annual rate of $500 for Joseph, and Daniel is assessed to pay an annual rate of $1000 each for William and Phoebe. Joseph is therefore the payer and is liable to pay a total of $1500 ($2000 for William and Phoebe less $500 entitlement for Joseph).

Samantha has been granted a violence exemption in respect of William and Phoebe and therefore is not required to seek child support from Daniel. Samantha elects to end the child support case for William and Phoebe (the children in her care), however the case for the child Daniel's care (Joseph) remains active. Samantha cannot end the case for Joseph.

The amount of child support payable will be adjusted and the customer’s roles will change as Daniel has care of the only remaining child of the case. Samantha now becomes the payer in the child support case.

4

Example - family and domestic violence

Kathryn contacts Services Australia because the FTB Part A payment has reduced to the minimum rate.

In the discussion with Kathryn, the Service Officer identifies that Kathryn has serious concerns about personal safety if child support is claimed from the children's other parent.

Exemption options with Kathryn are discussed, and Kathryn confirms that this would be the best option for this situation.

The Service Officer refers Kathryn to a social worker for an exemption assessment, and codes the MXR MAT code pending the decision.

The social worker completes an interview with Kathryn and assesses that Kathryn is in genuine fear due to family and domestic violence concerns. An exemption is granted (MAT code VIO).

Note: Kathryn does not have a child support assessment in place, ending an assessment is not required.

5

Example - serious imposition

Carolyn contacts Services Australia because FTB Part A payment has reduced significantly.

Carolyn explains that if the other parent is asked for child support, there is a concern that the other parent may end their life. Carolyn advises that the other parent is currently hospitalised due to serious mental health problems.

Carolyn advises that although they are separated, Carolyn still helps the ex-partner a lot at the moment. The ex-partner has elderly parents and just lost a job.

The Service Officer explains that Carolyn may be able to seek an exemption from having a child support assessment. Carolyn agrees that this would be a good option and is referred to a social worker.

The social worker completes an assessment with Carolyn and grants an exemption due to 'imposition' (MAT code IMP).

Note: as Carolyn does not have a child support assessment in place, ending an assessment is not required. If Carolyn had a child support assessment in place, they would also need to contact Child Support to elect to end the case.

6

Reapplying a Maintenance Exemption

Backdating the Maintenance Exemption that is being reapplied

Maddie had a full maintenance exemption of VIO (Violence) for child Lincoln before Lincoln left Maddie’s care on 4 July 2018.

Maddie lodged an FTB new claim with Services Australia on 30 November 2018 advising that Lincoln returned to Maddie’s care on 15 August 2018 and there have been no significant changes to the family circumstances.

Significant change in circumstances may include but are not limited to:

• Additional child/ren enters the customer’s care
• Change in marital status
• Overseas absences

A full exemption for VIO can be reapplied without a Social Worker assessment because Lincoln has returned to Maddie’s care within 13 weeks and there have been no significant changes in their family circumstances.

The date of effect for coding VIO on the Maintenance Action (MNMA) screen for Lincoln is 15 August 2018. The backdating of the exemption may cause FTB arrears to be paid because the 13 week Deciding Maintenance Action (DMA) period has finished and the MNMA screen may now display No Maintenance Action (NMA).

Level of care increases to more than 35% within 13 weeks

Corey has had 60% care of the children Erin and Liam for the last 2 years with a full maintenance exemption of IMP (Imposition). The level of care for Erin and Liam decreased to 30% on 14 August 2018. On 30 October 2018, Services Australia was advised the level of care for Corey increased to 70% on 16 October 2018.

A full exemption for IMP can be reapplied without a Social Worker assessment because:

• the level of care for Erin and Liam has increased over 35% within 13 weeks and
• there have been no significant changes in Corey’s family circumstances

The date of effect for coding the imposition exemption on the Maintenance Action (MNMA) screens for Erin and Liam is 16 October 2018.

Child returns to care more than 13 weeks after leaving care

Tom had a full maintenance exemption of VIO (Violence) for child Wilson before Wilson left Tom’s care on 5 January 2018.

Tom lodged an FTB new claim with Services Australia on 29 December 2018 advising:

• Wilson returned to Tom’s care on 20 December 2018 and
• there have been no significant changes to the family circumstances

A full exemption for VIO cannot be reapplied without a Social Worker assessment because Wilson did not return to Tom’s care within 13 weeks of 5 January 2018.

Tom must be referred to a Social Worker to apply for a new VIO exemption for Wilson.

7

Retrospective increase in child support assessment for a private collect period – customer unable to collect the arrears

Wendy has had a private collect child support case against ex-partner John since 1 July 2014. John’s child support assessment has always been $1500pa, which Wendy has always collected.

In 2018, John lodges tax returns back to 1 July 2014, and Child Support reassess the child support assessments. John’s child support liability is retrospectively increased to $19,500pa for each year from 2014/2015-2017/2018. This information is sent to Centrelink via the data exchange, and results in reconciliation debts for Wendy, as it is deemed $19,500pa was collected by Wendy.

Wendy contacts Centrelink and advises that John has refused to pay the child support arrears privately and Wendy has changed to Child Support collect. The reason is John has refused to pay the new assessment ongoing. Wendy is advised that it may be best to seek legal advice.

Wendy contacts a legal practitioner, and they advise that it would not be cost effective for them to help. John has declared bankruptcy.

Wendy obtains a letter from the legal practitioner, which confirms they cannot help. Wendy presents this letter to Centrelink. Wendy is referred to a Social Worker to apply for a partial exemption for the years 2014/2015-2017/2018. Reason is ‘other exceptional circumstances’. For Wendy, the exceptional circumstance is gaining legal assistance was attempted, however it is not cost effective for the legal practitioner to pursue the arrears.

The Social Worker grants a partial exemption for Wendy for the applicable years. This allows the MIT to be updated for those years to reflect the $1500pa that Wendy actually collected.

Item

Text

1

Letter text for Q888 - Partial exemption granted by social worker, customer has a private collect child support case

A Services Australia (social worker/Indigenous Specialist Officer) has assessed (your/your partner's) request for a child support exemption for (AFFECTED CHILD NAME/S). After carefully considering (your/your partner's) circumstances, a decision has been made that (you are/your partner is) entitled to a partial exemption.

As part of this exemption, (you/your partner) advised that you are able to collect ($AMOUNT) of child support per (week/fortnight/annum). This amount has been recorded to be assessed for Maintenance Income Test purposes.

What you need to do

As (you/your partner) advised that you are able to collect the above amount of child support, we will continue to assess this amount until (you advise/your partner advises) that this amount has ceased or changed, or (you advise/your partner advises) us that the child support assessment amount as assessed by Child Support has changed.

This is a request made under family assistance law.

Information you should know

This exemption may be reviewed by the (Social Worker/Indigenous Specialist Officer) in the future. If this occurs, (you/your partner) may be contacted to confirm if any of the details, which supported the granting of the exemption, have changed. (You/your partner) should also advise us if any of the details, which supported the granting of the exemption, change in the future.

If you have any questions or would like more information, please call us on 136 150. If you would like to speak to us in a language other than English, please call 131 202.

Yours sincerely.

2

Letter text for Q888 - Partial exemption granted by social worker, customer does not have a child support case but is able to collect some voluntary child support

A Services Australia (social worker/Indigenous Specialist Officer) has assessed (your/your partner's) request for a child support exemption for (AFFECTED CHILD NAME/S). After carefully considering (your/your partner's) circumstances, a decision has been made that (you are/your partner is) entitled to a partial exemption.

As part of this exemption, (you/your partner) advised that you are able to collect ($AMOUNT) of child support per (week/fortnight/annum). This amount has been recorded to be assessed for Maintenance Income Test purposes.

What you need to do

As (you/your partner) advised that you are able to collect the above amount of child support, we will continue to assess this amount until (you/your partner) advises that this amount has ceased or changed.

This is a request made under family assistance law.

Information you should know

This exemption may be reviewed by the (Social Worker/Indigenous Specialist Officer) in the future. If this occurs, (you/your partner) may be contacted to confirm if any of the details, which supported the granting of the exemption, have changed. (You/your partner) should also advise us if any of the details which supported the granting of the exemption change in the future.

If you have any questions or would like more information, please call us on 136 150. If you would like to speak to us in a language other than English, please call 131 202.

Yours sincerely.

3

Letter text for Q888 - Exemption denied by social worker or service officer and the customer does not have a current child support case for the child/ren

A Services Australia (social worker/Indigenous Specialist Officer/Service Officer) has assessed (your/your partner's) request for a child support exemption for (AFFECTED CHILD NAME/S). After carefully considering (your/your partner's) circumstances, a decision has been made that (you are/your partner is) not entitled to an exemption as (REASON FREE TEXT).

To continue to receive more than the minimum rate of Family Tax Benefit Part A, (you need/your partner needs) to take reasonable maintenance action for (AFFECTED CHILD NAME/S) by (DATE PLUS 14 DAYS).

What you need to do

(You/Your partner) will need to take reasonable action to obtain child support by applying for a child support assessment with Child Support by phoning 131 272 between 8:30 am and 4:30 pm Monday to Friday, or visit the Services Australia website at servicesaustralia.gov.au/childsupport.

Once (you have/your partner has) made an application for a child support assessment, you should advise us by calling 136 150.

This is a request made under family assistance law.

If child support is already being received

If (you are/your partner is) already receiving child support in the form of regular cash or lump sum payments, for example mortgage payments, household expenses or school fees, (you/your partner) will still need to apply for a child support assessment through the Child Support. You also need to contact us on 136 150 so we can let you know how this may affect your Family Tax Benefit.

If (you have/your partner has) a reason for not getting child support

If there is any reason that makes it difficult for (you/your partner) to apply for a child support assessment for (AFFECTED CHILD NAME/S), please call us on 136 150 so we can discuss (your/your partner's) options.

If (you do not/your partner does not) take action

If (you do not/your partner does not) take reasonable action to obtain child support within 14 days, you may not be eligible for more than the minimum rate of Family Tax Benefit Part A.

Information you should know

If you have any questions or would like more information, please call us on the number shown at the top of this letter. If you would like to speak to us in a language other than English, please call 131 202.

Yours sincerely

4

Letter text for Q888 - Exemption denied by social worker or service officer and the customer has a current child support case for the child/ren

A Services Australia (social worker/Indigenous Specialist Officer/Service Officer) has assessed (your/your partner's) request for a child support exemption for (AFFECTED CHILD NAME/S). After carefully considering (your/your partner's) circumstances, a decision has been made that (you are/your partner is) not entitled to an exemption as (REASON FREE TEXT).

Information you should know

If you have any questions or would like more information, please call us on the number shown at the top of this letter. If you would like to speak to us in a language other than English, please call 131 202.

Yours sincerely

5

Letter text for Q888 - Exemption denied by social worker after review, existing exemption not to be continued

A Services Australia social worker has recently reviewed the child support exemption that you /your partner held for (CHILD'S NAME). After carefully considering (your/your partners) circumstances, a decision has been made that (you no longer meet/your partner no longer meets) the conditions of this exemption.

To continue to receive more than the minimum rate of Family Tax Benefit Part A, (you need/your partner needs) to take action to obtain child support for (CHILD'S NAME) by (DATE PLUS 14 DAYS).

What you need to do

(You/Your partner) will need to take reasonable action to obtain child support by applying for a child support assessment with Child Support. Please call them on 131 272 between 8:30 am and 4:30 pm Monday to Friday or visit their website at servicesaustralia.gov.au.

Once (you have/your partner has) made an application for a child support assessment, you should advise us by calling 136 150.

This is a request made under family assistance law.

If child support is already being received

If (you are/your partner is) already receiving child support in the form of regular cash or lump sum payments, for example mortgage payments, household expenses or school fees, (you/your partner) will still need to apply for a child support assessment through Child Support. You also need to contact us on 136 150 so we can let you know how this may affect your Family Tax Benefit.

If (you have/your partner has) a reason for not getting child support

If there is any reason that makes it difficult for (you/your partner) to apply for a child support assessment for (AFFECTED CHILD NAME/S), please call us on 136 150 so we can discuss (your/your partner's) options.

If (you do not/your partner does not) take action

If (you do not/your partner does not) take reasonable action to obtain child support within 14 days, you may not be eligible for more than the minimum rate of Family Tax Benefit Part A.

Information you should know

If you have any questions or would like more information, please call us on the number shown at the top of this letter. If you would like to speak to us in a language other than English, please call 131 202.

Yours sincerely

6

Letter text for Q888 - Exemption denied by social worker or service officer as unable to contact the customer

A Services Australia (social worker/Indigenous Specialist Officer/Service Officer) has attempted to contact (you/your partner) to discuss (your/your partner's) request for a child support exemption for (AFFECTED CHILD NAME/S). After several unsuccessful attempts to contact (you/your partner), a decision has been made that Services Australia is unable to assess (your/your partner’s) request for an exemption.

To continue to receive more than the minimum rate of Family Tax Benefit Part A, (you need/your partner needs) to take reasonable maintenance action for (AFFECTED CHILD NAME/S) by (DATE PLUS 14 DAYS).

What you need to do

(You/Your partner) will need to take reasonable action to obtain child support by applying for a child support assessment with Child Support by phoning 131 272 between 8:30 am and 4:30 pm Monday to Friday or visit the Services Australia website at servicesaustralia.gov.au/childsupport.

Once (you have/your partner has) made an application for a child support assessment, you should advise us by calling 136 150.

This is a request made under family assistance law.

If child support is already being received

If (you are/your partner is) already receiving child support in the form of regular cash or lump sum payments, for example mortgage payments, household expenses or school fees, (you/your partner) will still need to apply for a child support assessment through the Child Support. You also need to contact us on 136 150 so we can let you know how this may affect your Family Tax Benefit.

If (you have/your partner has) a reason for not getting child support

If there is any reason that makes it difficult for (you/your partner) to apply for a child support assessment for (AFFECTED CHILD NAME/S), please call us on 136 150 so we can discuss (your/your partner's) options.

If (you do not/your partner does not) take action

If (you do not/your partner does not) take reasonable action to obtain child support within 14 days, you may not be eligible for more than the minimum rate of Family Tax Benefit Part A.

Information you should know

If you have any questions or would like more information, please call us on the number shown at the top of this letter. If you would like to speak to us in a language other than English, please call 131 202.

Yours sincerely

7

Letter text for Q888 - Customer has MXR coded and advises that they are not going to pursue an exemption, customer not intending on applying for child support immediately

(You/Your partner) recently advised Services Australia that (you/your partner) did not wish to pursue an exemption from taking action to obtain child support for (AFFECTED CHILD NAME/S).

To continue to receive more than the minimum rate of Family Tax Benefit Part A, (you need/your partner needs) to take reasonable maintenance action for (AFFECTED CHILD NAME/S) by (DATE PLUS 14 DAYS).

What you need to do

(You/your partner) will need to take reasonable action to obtain child support by applying for a child support assessment with Child Support by phoning 131 272 between 8:30 am and 4:30 pm Monday to Friday or visit the Services Australia website at servicesaustralia.gov.au/childsupport.

Once (you have/your partner has) made an application for a child support assessment, you should advise us by calling 136 150.

This is a request made under family assistance law.

If child support is already being received

If (you are/your partner is) already receiving child support in the form of regular cash or lump sum payments, for example mortgage payments, household expenses or school fees, (you/your partner) will still need to apply for a child support assessment through the Child Support. You also need to contact us on 136 150 so we can let you know how this may affect your Family Tax Benefit.

If (you have/your partner has) a reason for not getting child support

If there is any reason that makes it difficult for (you/your partner) to apply for a child support assessment for (AFFECTED CHILD NAME/S), please call us on 136 150 so we can discuss (your/your partner's) options.

If (you do not/your partner does not) take action

If (you do not/your partner does not) take reasonable action to obtain child support within 14 days, you may not be eligible for more than the minimum rate of Family Tax Benefit Part A.

Information you should know

If you have any questions or would like more information, please call us on the number shown at the top of this letter. If you would like to speak to us in a language other than English, please call 131 202.

Yours sincerely