Child support agreements and Family Tax Benefit (FTB) 277-51090000

Customers can choose to register a child support agreement with Child Support.

If the agreement has a start date:

• Before 1 July 2008 and the customer is claiming more than base rate FTB Part A, Centrelink is responsible for determining whether the agreement satisfies Maintenance Action Test requirements. For FTB instalment customers, child support income is assessed according to their full child support entitlement (private collect) or the amount collected (Child Support collect), according to details transferred by Child Support (as for customers with a child support assessment). If the agreement includes non-cash or capitalised child support, this must be manually recorded on the customer's record
• On or after 1 July 2008, Child Support is responsible for assessing the agreement. Child support details are not manually assessed or recorded as the assessment is automatic based on the notional assessment (NA) advised by Child Support. In some cases the Administrative Assessment is used, for example for a lump sum agreement

Customers with a child support agreement may choose to collect child support privately or via Child Support.

These orders/agreements are not 'Child Support' agreements as child support agreements cannot be made by court order. Generally, these orders are a consent order that includes an agreement about child support between the 2 parties.

The 'Application for a Consent Order', not the consent order, is the 'Agreement' document that can be registered with Child Support.

Do not confuse these orders/agreements with child support agreements registered with a court or with an informal, private arrangement for child support. FTB customers with court order or a court registered agreement contains further information.

Centrelink was responsible for assessing whether the agreement met the Maintenance Action Test (MAT) if the customer was entitled to more than base rate FTB Part A.

An agreement could only be accepted if it was at least equal to the Child Support formula assessment amount or within $60. Note: Centrelink was only required to assess the period from the start date up to and including 30 June 2008.

Child Support is responsible for assessing the agreement. If the agreement is approved, it meets the Maintenance Action Test (MAT) for FTB purposes.

The type of child support agreement does not affect assessment for FTB. For FTB, the agreement is assessed using the Notional Assessment (NA) provided by Child Support or, if there is no Notional Assessment in place, an Administrative Assessment is used.

The agreement can include regular payments, irregular payments, lump sums or non-cash benefits. Customers can choose to collect the agreement privately or opt for Child Support collection.

If a child support payer’s level of care increases to more than 65% and they are receiving FTB for the child/ren. they must take reasonable steps to obtain child support for the child/ren. Otherwise, they may be deemed to fail the Maintenance Action Test (MAT).

MAT for FTB customers has more details on reasonable maintenance action in these cases.

The Resources page contains a link to the Services Australia website for information about child support options for parents, forms and publications, and text to use in the letter to both parties to advise the decision about an agreement with a start date before 1 July 2008.