Amending maintenance income details on the Override Maintenance Income (MNOI) screen 277-51130020

Item

Example

1

Private collection - incorrect or omitted Child Support assessment amounts

Susan has an annual child support entitlement of $5,000 since 1 September (new customer with relevant period 1 September to 30 June). Child Support advises a new assessment of $10,000 from 1 January which is later found to be incorrect.

Reconciliation calculation was ($5,000 x 122 / 365) + ($10,000 x 181 /365) = $6,630.14 which is annualised $6,630.14 x 365 / (122 + 181) = $7,986.80.

As the $10,000 assessment did not apply to Susan, from 1 January to 30 June, Susan collected ($5,000 x 181/ 365) = $2,479.45.

Maintenance income details are amended for period 1 January - 30 June, a new amount of $2,479.45.

This triggers re-reconciliation - ($5,000 x 122 / 365) + $2,479.45 = $4,150.68 which is annualised: $4,150.68 x 365 / 303 = $5,000

2

Private collection - customer collects less than full entitlement from 1 July 2012

Esther's child support entitlement for the 2022-23 financial year is $5,000. Esther is not eligible for an exemption. On 1 July 2023, Esther advises that only $4,000 was able to be collected for the financial year. As Esther has not collected the full entitlement as of 1 July 2022, the family assistance will not be restricted to the base rate of FTB Part A due to failing the Maintenance Action Test (MAT). Esther is deemed to have received the full child support entitlement $5,000) for Maintenance Income Test (MIT) purposes.

3

Child Support collection - non-agency payment received as several separate payments across financial years

Child Support advise a lump sum non-agency payment of $7,000 for Ross with a date of 4 April. Child Support verify that it is a prescribed payment for school fees. The customer advises $4,000 was paid to the school by their separated partner on 1 March and expects the remainder will be paid in the next financial year.

The maintenance income is amended on MNOI using a start and end date of 4 April, with a new amount of $4,000.

Ross should advise if and when any more payments are made.

4

Child Support collection - disbursement includes amount for child aged over 18

Julie received a Child Support disbursement of $6,000 on 1 August which Child Support confirms is arrears for two children, Emily aged under 16 and Kerrie who turned 18 on 1 April.

As Emily is the only child in the Child Support case, the system assumes the total payment is for Emily, whereas half the payment should be ignored.

The maintenance income is amended on MNOI with a start and end date of 1 August with a new amount of $3,000.

5

Private collection - partial MAT exemption backdated before 1 July of the current financial year

Belinda's child support entitlement for the 2024-25 financial year was $3,000 which Belinda elected to collect privately.

Belinda is granted a partial violence exemption (MAT exempt) by a social worker in September 2025. The social worker determines that the exemption should be backdated to 1 July of the previous financial year (1 July 2024).

Belinda advised that only $500 was collected of the full Child Support assessed amount during the 2024-25 financial year.

Only the amount that was actually collected should be taken into account for the purposes of the Maintenance Income Test (MIT). The maintenance income for the 2024-25 financial year is adjusted to reflect the actual amount of child support received ($500) and Belinda's FTB is re-reconciled resulting in a top-up payment.

6

Private collection - full MAT exemption backdated before 1 July of the current financial year

Michelle's child support entitlement for the 2023-24 financial year was $6,000 which Michelle elected to collect privately.

Michelle is granted a full exemption based on FDV concerns (MAT exempt) by a social worker in August 2024. The social worker determines that the exemption should be backdated to 1 July of the previous financial year (1 July 2023).

Michelle advised that only $1000 was collected of the full Child Support assessed amount during the 2023-24 financial year.

Only the amount that was actually collected should be taken into account for the purposes of the Maintenance Income Test (MIT). The maintenance income for the 2023-24 financial year is adjusted to reflect the actual amount of child support received ($1000) and Michelle's FTB is re-reconciled resulting in reconciliation arrears

Michelle can elect to discharge any arrears on the case. Discharging the arrears may help in stopping more family and domestic violence issues and will not have any impact on the FTB rate for the backdated or ongoing period.

As a full exemption has been granted, SWO will refer customer to Child Support or email Child Support to request the case be ended.

7

Child Support collect and customer has a retrospective decrease in the child support assessment, resulting in a child support debt

Wendy has a Child Support collect case and collects $4,000 in the 2021-22 financial year. Her FTB for the 2021-22 financial year is reconciled based on the $4,000 she actually collected.

Wendy’s ex-husband then lodges his tax return, and the child support assessment for the 2021-22 financial year is retrospectively decreased by $1,500, meaning Wendy has been overpaid $2,500. This becomes a child support debt.

Wendy chooses for the child support debt to be recovered via the:

• Overpayment Method – this means Wendy will not receive any child support ongoing until the $2,500 debt is repaid.
  The ongoing child support assessment is $6,000pa ($500 per month). Wendy does not receive any child support for 5 months (5 months x $500 per month repays the debt of $2,500).
  Wendy then receives regular disbursements of $500 per month for the remaining 7 months.
  The maintenance income for Wendy needs to be manually keyed on MNOI before reconciliation occurs, otherwise reconciliation will only use the 7 x $500 payments seen on MNGP, not the additional $2,500 which has been drawn down against her child support debt (shown in Cuba).
  The total amount keyed on MNOI is $3,500 from MNGP + $2,500 from Cuba = $6,000.
• Consolidated Revenue (CR) Method – this means that Wendy will receive a portion of her ongoing child support assessment until the $2,500 debt is repaid (e.g. 50%).
  The ongoing child support assessment is $6,000 pa ($500 per month). Wendy’s ex-husband continues to pay 50% of his monthly child support assessment for the full 2022-23 financial year, for example the husband pays $250 per month. The other $250 per month is drawn down against Wendy’s child support debt. After 10 months, Wendy’s debt has been repaid (10 months x $250 drawn down against the debt each month). For the last 2 months of the financial year, Wendy’s ex-husband pays $400 per month.
  The maintenance income for Wendy needs to be manually keyed on MNOI before reconciliation occurs, otherwise reconciliation will only use 10 payments of $250 and 2 payments of $400, total of $3,300, not the additional $2,500 which has been drawn down against her debt (shown in Cuba).
  The total amount keyed on MNOI is $3,300 from MNGP + $2,500 from Cuba = $5,800.
  Note: from December 2023, Child Support stopped using consolidated revenue to facilitate a payee overpayment recovery arrangement. This method only applies to payees with an overpayment created before December 2023.