Administering agreements and court varied assessments (CVA) lodged post 1 July 2008 that include pre and post 1 July 2008 periods 277-02010050

Legislative changes made by the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2008 Budget and Other Measures) Act 2008 have implications for the way in which Child Support administer both agreements and some CVAs (generally orders other than for periodic amounts) that are lodged on or after 1 July 2008 and have a start date before 1 July 2008 and an end date after 30 June 2008. This is to ensure that any pre 1 July 2008 portion of an agreement or CVA are processed in line with the legislation that applied at that time. This includes referring the pre 1 July 2008 portion of an agreement to Centrelink for approval, where required. There are not likely to be many of these. As time passes after 1 July 2008, parents are less likely to make arrangements that backdate before 1 July 2008.

Agreements that are lodged on or after 1 July 2008 and have a start date before 1 July 2008 with an end date on or after 1 July 2008, may need to be loaded using both the pre and post July 2008 legislation and procedures. This applies to both limited and binding agreements. Agreements between Child Support customers instructs Service Officers to refer these agreements to a Program Support Manager via a Service Support Officer (SSO).

Where child support is already payable, the assessment will be varied from:

• the date specified in the agreement, if the application for acceptance of the agreement was made within 28 days of the agreement being signed, provided that date is not before the date the case started

Section 34B of the Child Support (Assessment) Act 1989 relating to the backdating of agreements was amended on 1 July 2008. Where an application for acceptance of the agreement was lodged with Child Support Program (CSP) after 1 July 2008, the agreement provisions can only be backdated where the application was made within 28 days of the agreement being signed. If the application is lodged more than 28 days after the agreement was signed, the accepted agreement will only have effect from the date that the application for acceptance is made.

Example 1: The parents, Muriel & Fred, have a private collect child support case that started in 2004. Muriel & Fred signed a child support agreement on 15 April 2006, but neither parent ever made an application to CSP to have the agreement accepted. On 15 July 2008, Muriel lodged an application for acceptance of the agreement. As the application for acceptance was made after 1 July 2008 and was more than 28 days after the agreement was signed, the agreement provisions will apply from 15 July 2008 only. There is no need to load the agreement for the earlier period or have it considered by Centrelink.

Example 2: The parents, Anne & Bob, have a CSP collect child support case that started in 2002. Anne & Bob sign a child support agreement on 28 July 2008, which includes provisions for periodic payments from 1 July 2004 onwards. On 4 August 2008, Anne lodges an application for acceptance of the agreement. As the application for acceptance was made after 1 July 2008 and within 28 days of the agreement being signed, the agreement (if accepted) will be backdated to 1 July 2004. Both parts of the agreement must be loaded and Centrelink approval will be required for the pre-1 July 2008 provisions.

So under these conditions, the agreement must be loaded as 2 separate child support agreements - one for the period before 1 July 2008 and the other for the period from 1 July 2008 if the agreement is:

• lodged on or after 1 July 2008
• with a start date before 1 July 2008 and an end date on or after 1 July 2008; and
• within 28 days of the agreement being signed

See the Guide 2.7.4 Effect of a child support agreement once accepted by the Registrar (other then lump sum provisions).

Example: An agreement is made and signed on 01/09/2008 with a specified start date of 01/06/2008, a parent applied for acceptance of the agreement on 8/9/2008 and the application is accepted by CSP on 10/09/2008. The agreement spans 01 July 2008 when the legislation was amended. The application for acceptance was made within 28 days of signing; therefore the start date of 01/06/2008 should be applied. The portion of the agreement from 01/06/2008 to 30/06/2008 will need Centrelink approval if the payee is on more than the base rate of Family Tax Benefit part A.

See pre July 2008 version of PI - Agreements. Email Operational Blueprint to request a copy of a pre 1 July 2008 Procedural Instruction.

Post July 2008 legislation will be applied in determining whether to accept the agreement for the post 1 July 2008 period.

This may mean that one period of the agreement is accepted and the other is not accepted.