Maintenance Income Test (MIT) for ABSTUDY and Youth Allowance (YA) 108-02040000

In Process Direct the Maintenance Income Test results are displayed using the MIT Youth icon or Activity List (MITSUMMARY) screen. The information will only display if the customer has previously lodged a claim for a youth payment or is claiming a youth payment. This displays the following:

• Benefit (Service Reason) - the benefit type for the customer at the time the MIT was applied
• Effect date - date the change to the Maintenance Income Test applies
• Cust annualised amount - the annualised amount of maintenance income based on the Disbursement or Entitlement method
• Maintenance Inc Free Area - the amount applying at the time of calculation
• MIFA FTB sibling count - amount of FTB siblings that attract maintenance income
• MIFA Other Sibling Count - amount of ISP siblings that attract maintenance income
• Maintenance Reducible amount
• PIT Result - the parental income test reduction amount
• MIT Result - the maintenance income test reduction amount
• Notional Reduction - MIT notional reduction amount

For the application of the MIT, see Step 1 in Table 2

Note: child support assessment information can also be viewed in some circumstances on the Maintenance Entitlement Group Summary (MNGS) screen in the parent/guardian's record. See Where to find child support information on Centrelink systems.

To view, record or update voluntary maintenance income for a:

• change of circumstance via Process Direct, go to Step 2
• new claim via Process Direct, go to Step 3
• change in circumstance and ABSTUDY new claims processed in Customer First, go to Step 4

View and update voluntary or capitalised maintenance income on the Dependant Youth Maintenance Income (DYMI) screen in Process Direct.

Note: on the DYMI screen if the CS Case ID or other fields do not display data, run a SAP refresh. If the SAP refresh is unsuccessful, escalate using ROXY.

Record or update voluntary maintenance

• Select Add to initiate a voluntary maintenance entry by completing the mandatory fields:
• Date of event: the date the change in voluntary maintenance occurred (this can be a past or future date)
• Parent CRN: the Parent Income Test (PIT) linked parent/guardian or partner CRN
• Maintenance amount: the amount as advised by the customer or the parent(s)/guardian(s)
• Frequency: select from the dropdown menu (annual maintenance amount will default)
• Type: type will default to VOL – Voluntary MIT
• Child Benefit type: the payment of the customer (YAL, ABY or EIC)
• Select Save
• Key the Receipt date and Channel
• Select Assess
• Check the outcome is correct and select Finish from the Entitlements (ELD) screen
• Add any notes/comments on the Finalise Note
• Select Finalise
• If the customer is advising of Voluntary maintenance, in Customer First complete the Maintenance income advised by customer Fast Note Display on Access DOC to address privacy requirements. Include relevant details, for example, customer advises parent gives them $50.00 per week

To change a voluntary maintenance payment already recorded on DYMI, add a new entry with the new details.

Record capitalised maintenance

• Select Add to initiate a capitalised maintenance entry by completing the mandatory fields:
• Date of event: the date the capitalised maintenance was received (this can be a past or future date)
• Parent CRN: the Parent Income Test (PIT) linked parent/guardian or partner CRN
• Maintenance amount: the annual amount as advised by the customer or the parent(s)/guardian(s). Note: capitalised maintenance must be apportioned over the period it applies, for example, if the total amount is $5,000 for a five year period, the amount recorded on DYMI must be the amount the customer would receive each year, $1,000
• Frequency: select from the dropdown menu (annual maintenance amount will default)
• Type: enter CAP (voluntary maintenance will default)
• Child Benefit type: the payment of the customer (YAL, ABY or EIC)
• Select Save
• Key the Receipt date and Channel

End Capitalised Maintenance

A second entry must be inserted, at the same time as the first entry, to end date the capitalised maintenance and to avoid it being incorrectly assessed.

• Date of event: the date the capitalised maintenance will end – either the customers 18th birthday or the date indicated on the court order or agreement
• Parent CRN: the Parent Income Test (PIT) linked parent/guardian or partner CRN
• Maintenance amount: $0.00
• Frequency: select from the dropdown menu (annual maintenance amount will default)
• Type: enter CAP (voluntary maintenance will default)
• Child Benefit type: the payment of the customer (YAL, ABY or EIC)

• Select Save
• Select Assess

Note: before finalisation, the provisional voluntary or capitalised entry can be edited or deleted. A confirmed entry cannot be deleted or edited. If voluntary or capitalised maintenance information has changed, create a new DYMI entry.

To filter maintenance income entries on DYMI:

Historical entries in the DYMI screen can be filtered to assist with searching for specific entries.

• Select on the right of the screen and choose one of the filter options: Type, Frequency or Case ID and choose a sub filter type of either:
• CSA – Child Support Assessment
• VOL – Voluntary Maintenance
• OVR – System Override
• CAP – Capitalised Maintenance
• Select Apply Filter which will filter the entries on DYMI

To record or update voluntary maintenance income for a new claim processed in Process Direct, the relevant PIT parent(s)/guardian(s) must first be linked to the dependent customer, see Linking parent records with dependents, to:

• Go to the Dependent Youth Maintenance Income (DYMI) screen
• Select Add to initiate a voluntary maintenance entry by completing the mandatory fields:
• Date of Event: the date the change in voluntary maintenance occurred (this can be a past or future date)
• Parent CRN: the Parent Income Test (PIT) linked parent/guardian or partner CRN
• Maintenance amount: the amount as advised by the customer or the parent(s)/guardian(s)
• Frequency: select from the dropdown menu (annual maintenance amount will default)
• Annual Maintenance Amount: will auto calculate and pre-populate based on the Maintenance amount and frequency where applicable
• Type: type will default to VOL – Voluntary MIT
• Child Benefit type: the payment of the customer (YAL, ABY or EIC)
• Select Save
• Key the Receipt date and Channel
• Select Assess

To change a voluntary maintenance payment already recorded on DYMI, add a new entry with the new details.

Continue assessing the new claim as required.

To record or view the voluntary maintenance income for a change of circumstance or new claim processed in Customer First:

• Select Maintenance Income ABY/AIC/YA guided procedure, from Customer First Workspace
• Select New to initiate a new entry, and complete the required fields:
• Benefit Type: the customer’s current benefit type
• Date of Receipt: the date on which the change of circumstances was notified
• Child CRN: enter the customers CRN
• Parent CRN: the parent receiving the maintenance income
• Child Benefit Type: select from the dropdown menu
• Start Date: the date the change in voluntary maintenance occurred (this can be a past or future date)
• Maint Type Code: Voluntary
• MaintAmount Received: as advised by the customer or parent(s)/guardian(s)
• Payment Frequency: as advised by the customer or parent(s)/guardian(s)
• Select ‘Continue’ to accept the updates
• Select ‘Progress’ to finalise the activity

To change a voluntary maintenance payment already recorded, add a new entry with the new details.

If the customer is advising of voluntary maintenance income, complete the Maintenance income advised by customer Fast Note Display on Access DOC to address privacy requirements. Include relevant details, for example, customer advises parent gives them $50.00 per week.

To filter maintenance income entries on the guided procedures.

Historical entries can be filtered to assist with searching for specific entries. From the Maintenance Income ABY/AIC/YA guided procedure Summary View, select the column heading/s and choose the filter types from the dropdown menu.

The MIT is made up of;

• Maintenance Income Test Reducible Amount (MRA)
• Parental Income Test Reduction Amount (PITRA)
• Maintenance Income Test Notional Reduction (MITNR)

Before calculating the MIT, the PIT reduction amount (PITRA) must be calculated.
See:

• Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance or
• Applying the Parental Income Test (PIT) for Assistance for Isolated Children (AIC) Scheme

Is the PITRA equal to or more than the Maintenance Income Test Reducible Amount (MRA)?

• Yes, the PITRA will reduce the customer's maximum payment rate. Procedure ends here
• No, go to Step 2

Is the customer exempt from the MIT?

• Yes, the customer's MIT result is nil. The PITRA will reduce the customer's maximum payment rate. Procedure ends here
• No, go to Step 3

Where a parent/guardian has a child support assessment the entitlement method is used to estimate annual maintenance income received from a person unless the disbursement method has been elected by the parent/guardian. Under the entitlement method, Centrelink assumes customers will receive their full entitlement.

If the child support assessment changes throughout the financial year, annual maintenance income is recalculated so each entitlement amount is apportioned for the period to which it applies in the financial year.

Annual voluntary maintenance is calculated based on the entitlement method as a person is deemed to receive the full amount of maintenance recorded.

The disbursement method is based on actual payments (disbursements) the parent/guardian receives through Child Support. Each time a payment is disbursed to a parent/guardian the annual maintenance income for the financial year is recalculated. If no disbursement is received in the month the annual maintenance income will be recalculated based on a nil payment for that month.

Note: a parent/guardian can change their assessment method and how they receive Family Tax Benefit, refer the parent/guardian to the Family Assistance line. For further details see Child Support collection customer wants to change assessment method.

Is the parent/guardian receiving maintenance income via the disbursement method?

• Yes, go to Step 4
• No, go to Step 5

When a disbursement is received from Child Support, the customer's annual maintenance income is calculated as the sum of:

• all child support disbursements received so far in the financial year during child support collection and private collection periods, including direct payments, often referred to as non-agency payments (NAP) and arrears payments
• the lower of:
• current month or the previous month disbursements (whichever is higher amount and including normal, emergency and NAP) X number of months left in financial year, or
• one twelfth of current child support entitlement amount X number of months left in financial year
• for any private collection periods, the apportioned entitlement/actual private child support amounts
• noncash maintenance
• capitalised maintenance income

Maintenance income is annualised:

• total received in relevant period X 365 / number of days in the customer's relevant period

For further details see Disbursement Method.

Go to Step 6.

If child support entitlement, voluntary or capitalised maintenance varies, annual maintenance income is recalculated under the Entitlement Method and includes each entitlement amount (or voluntary or capitalised maintenance income amount) apportioned for the period it applies.

• the current entitlement amount is used as the annual maintenance income
• if child support entitlement varies, annual maintenance income is recalculated and, under the Entitlement Method, includes:
• each entitlement amount (or actual voluntary maintenance income amount) apportioned for the period it applies: entitlement X number of days / 365
• an estimate for the remainder of the income year: entitlement X number of days / 365

These amounts are added together and then annualised. Maintenance income is annualised:

• entitlement X number of days / 365

For further details, see Entitlement Method.

Go to Step 6.

The Maintenance Income Free Area (MIFA) is calculated depending on who in the family attracts maintenance income.

Is the annual maintenance income lower than the customer’s MIFA?

• Yes, the customer's MIT result is NIL. Go to Step 8
• No, go to Step 7

Calculate the MIT result as follows:

• (Annualised Amount of Maintenance Income - MIFA) X 0.5 / 26

Go to Step 8.

To calculate the MIT Notional Reduction (MITNR), the MIT Result and the PITRA must first have been calculated.

Add the MIT Result to the PITRA to get the MITNR.

Is the MITNR equal to or higher than the MRA?

Yes, the MRA will reduce the customer's maximum payment rate

• No, the MITNR is less than the MRA. The MITNR will reduce the customer's maximum payment rate

Note: any changes to maintenance income during the year apply from date paid to plus one day regardless of when the change occurred.

Procedure ends here.