Backdating a Maintenance Action Test (MAT) exemption to take action to receive child support prior to 1 July of the previous financial year 277-51070100

To make a determination on a request for an exemption from seeking child support, see Exemptions from seeking child support for Family Tax Benefit (FTB) customers. Procedure ends here.

For circumstances when exemptions must be reviewed for future appropriateness, see Exemptions from seeking child support for FTB customers. Procedure ends here.

If the customer is eligible for an exemption and the circumstances for the exemption existed before, exemptions may be backdated.

Go to Step 2 if the customer indicates there were special circumstances that prevented them from applying:

• for a formal review of their rate of payment and/or
• MAT failure within 52 weeks of it occurring

If the customer does not agree with the start date of the granted exemption, see Request for an explanation or application for a formal review (CLK).

For arrears to be assessed for a period before 1 July of the previous financial year, special circumstances for backdating a maintenance action exemption must first be established. If special circumstances cannot be established, arrears are limited to 1 July of the previous financial year.

All maintenance exemption coding before 1 July of the previous financial year must be referred to a Families Service Support Officer (SSO) for consideration of special circumstances.

If the exemption is going to be coded from 1 July of the previous financial or later, see Exemptions from seeking child support for FTB customers.

Code the exemption on the Maintenance Action Input (MNMA) screen. For:

• non-social worker assessed exemptions, go to Step 3
• social worker assessed exemptions, go to Step 4

Consider if special circumstances exist, taking into consideration relevant information on the customer's record.

Things to look at when considering if special circumstances exist may include:

• DOCs in Archiving and Culling Engine (ACE) and on the Document List (DL) screen from the child's date of birth or the date of separation from the other parent. The reason for this is to determine:
• what the customer has been advised in relation to maintenance action
• what contact they have made in relation to maintenance action/obligations
• if they have ever questioned the Family Tax Benefit (FTB) rate decrease and/or questioned the rate of FTB payable due to the 'NMA' (no maintenance action) coding
• if they have ever questioned their rate and been advised that it was restricted to the base rate due to failing the MAT
• if they have ever contacted to discuss or question the letter advising them to take action (Q107/MARNL)
• if they have ever contacted to discuss or question any subsequent letters telling them to take action (FAOWAR, FAONOT)
• if they have claimed crisis payments for family and domestic violence or other reasons which might have indicated a discussion about an exemption may have been appropriate
• if they have previously applied for an exemption and what the outcome was. Were they advised to provide documents, that is a child's birth certificate for a parentage unknown exemption. If so, why was it not provided to support that application?
• if there is anything else relevant that should be considered in a special circumstances determination
• Letters in Customer Archive Retrieval (CAR), ACE and on History Summary (HS) screen to make sure:
• the customer was sent a letter advising them of the need to take action (Q107 or a MARNL), and
• that FAOWAR/FAONOT letter(s), including the paragraph about needing to take action for a particular child, have been sent advising the customer they have failed the MAT and are required to take action
• Checking historical Online Claims to substantiate a possible notification for an exemption from the MAT
• Checking when FTB for the child was granted. In a few cases, it was found that FTB was granted and backdated for a period which meant by the time FTB was granted, the DMA period had already expired:
• therefore a Q107/MARNL was not sent, and
• it may be reasonable to say the customer was not aware of their MAT obligations or a decrease in rate

The results of the exemptions investigation should support the application of a backdated exemption under special circumstances. Include all details in the DOC. The DOC must contain if the customer wishes to discharge child support arrears.

Customers granted a full or partial exemption can discharge outstanding child support arrears without having them included in the Maintenance Income Test (MIT) for FTB purposes.

Do investigations support backdating before 1 July of the previous financial year?

• Yes, go to Step 5
• No, see Exemptions from seeking child support for FTB customers

The social worker must note in a DOC:

• the date from which the exemption applies
• the type of exemption
• which child/ren the exemption is for, and
• what special circumstances existed

The DOC must contain if the customer wishes to discharge any child support arrears.

For social workers - In family and domestic violence cases if the customer elects not to discharge arrears a full exemption may not be appropriate. If the customer elects to collect the arrears they will be assessable under the Maintenance Income Test (MIT).

Customers who are granted a full or partial exemption can discharge outstanding child support arrears without having them included in the MIT for FTB purposes.

Consider if special circumstances exist. Investigate relevant details on the customer's record including:

• the customer's comprehension level
• emotional and personal circumstances which may have affected the customer's capacity at the time
• language barriers
• cognitive impairment
• failure of duty of care in providing the customer with correct information or advice
• if the customer has been sent letters advising them of the need to take action or contact if they have a reason for not taking action
• if there are any DOCS (on DL or in ACE) to show that the customer has been advised of the need to take action
• if the customer has previously been asked to provide evidence to support an exemption and has failed to do so

Results of the exemptions investigation must support the application of a backdated exemption under special circumstances. Include all details in the DOC.

Do investigations support backdating before 1 July of the previous financial year?

• Yes, go to Step 6
• No, see Exemptions from seeking child support for FTB customers

To refer the case to a Families SSO staff based:

• in Smart Centres and Service Delivery:
• can use the Direct referral to SSO webform for a Families SSO to assess the current year coding
• as well as special circumstances period before 1 July of the previous financial year, and
• the coding of the exemption
• with Service Delivery Partner(s) can refer to local escalation procedures to internal SSO channel as per agreed guidelines

In all cases, the referral needs to state the requested start date for the exemption is before 1 July of the previous financial year.

On the Activity List (AL) screen, update the Fast Note with 'Maint Exemption coding - to be referred directly to the FCC SSO as start date before 1 July of the previous financial year'.

The SSO will liaise with the referring social worker or Service Officer if needed. For example:

• if the Service Officer investigation DOC does not support further backdating, or
• there is insufficient information or evidence supplied

Annotate the DOC on the customer's record stating:

• the exemption period before 1 July of the previous financial year is being assessed by the SSO as per this procedure, and
• that an exemption will not be coded for the backdated period until a decision is made

Once a decision has been made, the SSO will code the appropriate start date for the exemption and record a DOC.

See Table 2 for detailed information and action needed.

Is the exemption coding urgent, for example if the customer is in the office, or immediate action is required?

• Yes,
• Select Fast Note - select Auto text, use Social Worker > Update > Maintenance Exemption to request coding of the exemption and privately collected maintenance
• Select Yes to complete the DOC in Document Completion. This makes sure the Fast Note is not allocated to a Service Officer
• Social workers must refer directly to a Service Support Officer (SSO) for all urgent coding. See Tier 0 technical support - self-sufficiency
• Include special circumstances period before 1 July of the previous financial year
• No, use the Direct referral to a SSO webform for a Families SSO to finalise both the current year and backdating coding

The SSO will liaise with the referring social worker or Service Officer if needed. For example:

• if the Service Officer investigation DOC does not support further backdating, or
• there is insufficient information or evidence supplied

On the Activity List (AL) screen, update the Fast Note with 'Maint Exemption coding - to be referred directly to the Families SSO as start date before 1 July of the previous financial year'.

Once a decision has been made the SSO will code the appropriate start date for the exemption and record a DOC.

See Step 1 in Table 2 for detailed information and action needed.

For arrears to be assessed for a period before 1 July of the previous financial year, special circumstances for backdating a maintenance action exemption must first be established.

That is, there must be special circumstances which prevented the customer:

• from applying for a formal review of their rate of payment and/or
• MAT failure within 52 weeks of it occurring

If special circumstances cannot be established, arrears are limited to 1 July of the previous financial year.

Consider if special circumstances exist, including looking at the following:

• The documented results of the exemption investigation by the referring officer and if the circumstances might warrant further backdating
• Check from the child's date of birth or the date of separation from the other parent, in:
• DOCs in Archiving and Culling Engine (ACE), and
• the Document List (DL) screen
• The reason for this is to determine:
• what the customer has been advised in relation to maintenance action
• what contact they have made in relation to maintenance action/obligations
• if they have ever questioned the FTB rate decrease and/or questioned the rate of FTB payable due to the NMA
• if they have ever questioned their rate and been advised it was restricted to the base rate due to failing the MAT
• if they have ever contacted to discuss or question the letter advising them to take action (Q107/MARNL)
• if they have ever contacted to discuss or question any subsequent letters telling them to take action (FAOWAR, FAONOT)
• if they have claimed crisis payments for family and domestic violence or other reasons which might have indicated that a discussion about an exemption may have been appropriate
• if they have previously applied for an exemption and what the outcome was. Were they advised to provide documents. That is a child's birth certificate for a parentage unknown exemption. If so, why was it not provided to support that application?
• if there is anything else relevant that should be considered in a special circumstances determination
• Letters in Customer Archive Retrieval (CAR), ACE and on History Summary (HS) screen to make sure:
• the customer was sent a letter advising them of the need to take action (Q107 or a MARNL), and.
• that FAOWAR/FAONOT letter(s), including the paragraph about needing to take action for a particular child, have been sent advising the customer that they have failed the MAT and are required to take action
• Checking historical Online Claims to substantiate a possible notification for an exemption from the MAT
• Checking when the FTB for the child was granted. In a few cases, it was found that the FTB was granted and backdated for a period which meant by the time FTB was granted, the DMA period had already expired:
• therefore a Q107/MARNL was not sent and
• it may be reasonable to say the customer was not aware of their MAT obligations or a decrease in rate
• Talking to the Service Officer or social worker to establish if they believe there was anything that prevented the customer from applying for a formal review within 52 weeks of reducing to the base rate

Once a decision has been made, code the appropriate start date for the exemption and annotate the DOC.

Tell the referring Service Officer/social worker of the decision.

• If a full exemption has been granted, go to Step 3
• If a partial exemption has been granted, go to Step 4

Annotate the DOC on the customer's record. If the customer has arrears owing on the child support case which are to be discharged, include this in the DOC.

Code the exemption on the Maintenance Action Input (MNMA) screen.

Send the customer a Q052 advising a full exemption has been granted. If the customer does not agree with the start date indicated in the letter, they may apply for a formal review. This includes if the backdating of the exemption has been denied. Standard review and appeal rights apply. See Request for an explanation or application for a formal review (CLK).

If there is a child support case to be ended, send an email to Child Support using the 'Maintenance Exemption Notification to Child Support Program' template. Resources has a link to the template.

The customer must also elect to end their case with Child Support. Refer the customer to Child Support immediately to request the case be ended. For contact details, see Child Support, or the Ending a child support assessment (CS1671) form may be used.

Private collect child support case

It may be appropriate to backdate an exemption if there are family and domestic violence circumstances present. The backdating of the exemption is to offset the effect of child support that the customer was deemed to have received, but may not have received due to family and domestic violence. This allows Centrelink to re-assess their FTB entitlement based on the actual amount of child support they received during this period.

Customers can no longer ask Child Support to backdate the case end to align with the exemption start date.

This means:

• if a customer has a private collect case and they are granted a full exemption from a date in the past
• additional coding is required by Centrelink to remove the uncollected child support from the Maintenance Income Test (MIT)

See Step 5 in Table 1 of Recording private maintenance income on Centrelink systems for coding details to apply the MIT correctly in these cases.

Child Support collect case

If a Child Support collect customer is granted an exemption and they have a current collect case, there may be outstanding arrears owing on the child support case. Customers can no longer ask Child Support to backdate the case end to align with the exemption start date. However a customer can elect to discharge any arrears without having them assessed under the MIT. This effectively means there is no requirement to backdate exemptions in these cases.

Procedure ends here.

Partial exemptions can be granted for:

• private collect customers who have a child support assessment, or
• customers who have not started a child support case and who can collect voluntary child support

Record a DOC on the customer's record. Include the actual amount of child support privately collected as this must be manually recorded.

Code the exemption on the Maintenance Action Input (MNMA) screen, and the maintenance income amount on the Actual Maintenance Collect - Child (MNAC) screen. Send the customer a Q999 advising a partial exemption has been granted. See the Resources page of Exemptions from seeking child support for FTB customers for approved text to be used.

Procedure ends here.