Managing reverse child support cases 277-03020010

A reverse case is created or updated when a customer’s role as payer or payee reverses when their assessment details change, for example new income or care details.

If the assessment is based on an agreement and a care change results in the payee ceasing to be an eligible carer for the child (less than 35% care), and a terminating event has not occurred, the agreement will be suspended or it will end for the child. A reverse case will be required if the overall roles of payer and payee change due to the agreement suspension or termination. See Suspending and ending a Child Support agreement due to care.

If the agreement includes a clause that allows the roles of the parties to swap when a specified level of care occurs, the agreement will not be suspended or terminated if the clause is activated and the payee ceases to be an eligible carer. Child support specified by the agreement will become payable to the other party, a reverse case may need to be created to reflect the new roles of the customers. See Managing changes affecting a Child Support agreement

Transfer the customer to the Agreements and Court Orders team to discuss possible impacts on the agreement if the payee under the agreement ceases to be an eligible carer of a child, or if the agreement includes a role swap clause. Additional processing will be required by the Agreements and Court Orders team, see Complex system processing for reverse child support cases.

Note: the 1 July 2018 changes for the suspension and ending of agreements due to care only apply to WA Ex-nuptial cases from 15 May 2019.

First time role reversal

When a customer’s role changes for the first time:

• a 'Reverse case will be created' message will appear in the Preconfirmation Results window, or
• a ‘Reverse case needs to be created or amended manually’ message will appear in the Preconfirmation Results window, and
• a 'Customer Role Changes Case Mgt' intray will generate for the new payer to prompt Customer Contact with both parties

Note: Cuba is programmed to default reverse cases to private collect. From 2 May 2016, all cases where the roles are reversing for the first time (initial reverse cases) must be registered for collection.

Subsequent role reversal

When a reverse case already exists and a subsequent role change occurs:

• a ‘Reverse case will be created’ message will appear in the Preconfirmation Results window and
• a 'Reverse case to be updated' intray will generate

To identify an existing reverse case check the customer’s Involvement List window. A reverse case exists if:

• the customer has 2 cases with the other parent or non-parent carer, with their roles shown as payer in 1 case and payee in the other
• one case has a nil liability

Reverse case automatically created

A reverse case generates automatically unless there is an active formula departure on the existing case, or an eligibility/data issue. If the reverse case has automatically generated or already exists, see Table 2.

If Cuba does not automatically generate the reverse case, manual processing is required to either prompt the reverse case to generate or manually create the case, go to Step 2.

If the customer’s role change takes effect in the future, for example a batch run has determined that the customers' roles will change in the next child support period due to new incomes, the reverse case cannot be created manually as a new registration cannot be 'forward dated'. Prompt the case to generate automatically, see Reverse cases Cuba Process Help.

If the customers' role change is effective immediately, for example updating an income or care details has caused a role change, create the reverse case manually.

Record a new application for assessment with the start date of registration being the date of the customers’ role change, see Assessments Cuba Process Help - Record a new assessment.

If the existing case has an active formula departure, record the formula modification on the reverse case to ensure that it has the intended effect. For more information, see Reverse cases Cuba Process Help.

Note: Cuba is programmed to default reverse cases to private collect. From 2 May 2016, all cases where the roles are reversing for the first time (initial reverse cases) must be registered for collection.

Ensure the changes are correct. Do not save eligibility unless certain all changes are correct, see Table 2.

Check each case to ensure the assessment is accurate, including:

• Presumption of parentage
• Care arrangements for all children
• Income details of both parents
• Child Support period start dates on the reverse and originating cases are the same
• Formula departures, including mixed assessments, are applied with the overall intended outcome
• Non-parent carers are considered correctly
• Other complex events
• Collection method (initial reverse cases must be registered for collection)
• Fixed annual rate (FAR) not to apply decisions. Copy the decision from the originating assessment to the reverse case
• Restart cases. Check the recorded dates for the new application. Do not use the lodgement and mailroom dates from the previous application. Using incorrect dates prevents the correct data being transferred to Centrelink

Some reverse case formula variations cannot occur automatically and require manual intervention. If Service Officers identify a system issue on the day the reverse case was created, this should be corrected in real time, that is same day processing - Service Officers do not need to follow the correcting errors process. Contact a Service Support Officer (SSO) who will refer to Complex system processing for reverse child support cases, see Technical Support in Child Support.

For existing reverse cases, if an error is identified at any time that is not corrected on the same date the reverse case is created, see Correcting errors on Child Support cases.

Check existing presumption of parentage (POP) details for both customers. If POP details:

• exist for both customers on 1 case, use this information to satisfy the POP requirements on the reverse case
• do not exist for 1 or both customers, see the Presumption of Parentage (POP) tool

Note: if POP is not satisfied request it from the customers however, parents are not obliged to provide this. If a parent is unable to or refuses to supply POP, the reverse case will be recorded as ‘proven on conversion’ and must not be refused due to POP

Ensure that all children of the relationship and relevant dependants appear correctly in both reverse cases. This includes checking that their CS/FAO care records are reflected on the assessment accurately.

If a care error has occurred, see Correcting errors on Child Support cases process.

Check all incomes of both parents including post separation incomes, estimates and default incomes on the existing case are correctly reflected and aligned in the reverse case. If the role change is triggered by the start of a new child support period, incomes may be different from those used in the previous child support period.

If the customer of a reverse case is making a new estimate election in real-time, see Table 6 in Child support estimates.

For more complex income matters including incorrectly applied amended taxable incomes and estimates, see Table 2 in Complex system processing for reverse child support cases.

A new child support period does not commence because a parent’s role changes and a reverse case is generated. However, a case event that triggers the start of a new child support period may also trigger the creation of a reverse case. See Child Support Guide 2.3: Child support periods.

The child support period start date used in the reverse case is the same as the date used in the existing case.

Align the start date of the child support period in the reverse case with the start date of the child support period in the existing case. See Table 1 in Child Support Period Management Cuba Process Help.

For assistance in aligning child support periods, see Reverse cases Cuba Process Help. If an error has occurred, or aligning the child support periods will result in a retrospective change to the assessment, see Correcting errors on Child Support cases and seek SSO assistance. See Technical Support in Child Support.

Ensure any formula departures (change of assessment, agreement or court order) have been created or updated to reflect the intent of the original formula departure. If the reverse case has had a formula departure applied incorrectly, or not had a formula departure applied when it should have been, seek SSO support and see Correcting errors on Child Support cases process.

Mixed assessment cases use both formula and formula departure components. Cuba does not automatically offset the 2 amounts and manual calculations and processing are required. See Complex system processing for reverse child support cases.

Check notepads in the Case window to ensure the previous mixed assessment calculations are correct.

If there are no calculations, or if unsure the calculations are accurate or the mixed assessment needs to be recalculated and reapplied, seek SSO support.

Note: where a mixed assessment is already in place and an event occurs that would ordinarily vary the formula or formula departure amount, for example a new income is received or a change occurs, the assessment calculations need to be checked by a SSO and PSM authorisation may be required.

SSOs applying or recalculating mixed assessments see Table 3 Complex system processing for reverse child support cases. If an error has occurred see Correcting errors on Child Support cases.

For more information about when a mixed assessment should apply, see Mixed Assessment support document.

Check all cases involving the non-parent carer to ensure:

• the formula does not reflect a multi case allowance or cap
• children of the assessment (or any other assessment) are not reflected as relevant dependent children
• the non-parent carer is accurately recorded as such and is not reflected as a parent. Note: a non-parent carer’s income is not used in the assessment, they do not have relevant dependent child amounts

Non parent carers may receive child support for both a biological child and a step child from the same person.

Due to the complexities of reverse child support cases that involve non-parent carers, seek SSO support who are to refer to Table 4 in Complex system processing for reverse child support cases.

Other events that can impact the accuracy of reverse case assessments include:

• Child returns to parent’s care and formula departure applies
• Terminating event due to reconciliation
• Applying post separation income to reverse case
• Both cases ended after payee election to end
• International customers
• Child support agreements
• Care suspension period
• Care terminating event

If any of the above events occur, refer to an SSO. SSOs see Complex system processing for reverse child support cases.

Check the collection method for the reverse case. See Case Collection Details Window Help.

Initial role reversal

Cuba is programmed to default to private collect when a reverse case generates for the first time (initial reverse cases).

From 2 May 2016 policy changed to reflect initial reverse cases should always be made collectable unless the payee has:

• been contacted and
• elected private collection

The ‘Cust role change case mgt’ intray generates to prompt contact with the customers to discuss the role reversal including the new payee’s preferred collection method.

If after the initial reverse case and 'Cust role change case mgt' intray has been finalised, it is later identified that an initial reverse case was not registered for collection in accordance with the 2 May 2016 collection policy, and the payee requests that the collection method is retrospectively reviewed, see Correcting errors on Child Support cases.

Subsequent role reversals

When a collection status for a case has been recorded, regardless of subsequent role changes, that collection status should endure until the parent entitled to receive child support requests a change.

If either customer requests a change to their collection status for the case where they hold/held the role of payee see:

• Application for Child Support to be collected or
• Collecting child support payments privately and/or discharging arrears

Disregard any unallocated NAP remaining on a case following a terminating event.

If a new child support assessment is accepted, any disregarded NAP will not apply to a new case.

This is because a NAP amount paid within one enforceable period cannot be applied to future amounts that become payable in a different child support enforcement period.

To disregard an unallocated NAP, see the Table 13 in Non-agency payment (NAP).

If the assessment is accurate and the customers' roles have changed, contact both customers to advise of their new role and responsibilities, see Contact with Child Support customers.

Where family and domestic violence is identified as being an issue, tell the customer the other parent will be contacted to discuss the case details. See Family and domestic violence.

Note: if the case is based on an agreement and either the payee under the agreement has ceased to be an eligible carer of a child or if the agreement includes a role swap clause, the Agreement and Court Order team will discuss the impact on the agreement.

Contact the customer who is now the payee to discuss why the role change has occurred for example change of care or new incomes.

Discuss collection options with the payee. From 2 May 2016, all cases where the roles are reversing for the first time (initial reverse cases) must be registered for collection. The payee then has the option to make a private collect election.

When completing an application for assessment, discuss and document the following:

• why the role change has occurred
• lodgement of tax returns if default incomes are in place, see Income processing for Child Support customers
• collection methods - if this is the first time the roles have reversed, the reverse case should be made collectable initially but the new payee can make an application to end collection, see Initial reverse case processing further down in this step
• disbursement cycles, see Disbursements of child support
• payment options for any child support arrears owed to the other parent - now the payer:
• debt offset, see Debt offset (CS)
• Payment arrangement, see Debt repayment (CS)
• objection rights, see Child Support objections
• uncredited non-agency payments, see Collecting child support payments privately and/or discharging arrears

If the payee has not elected to end collection, record their BSB and account number in the Bank Details window.

Record the outbound customer contact as a ‘registration’ issue in the Communication window to prevent an Eligibility window error message generating about mandatory contact not being made.

If the payee elects to end the case, go to the Table 5.

Initial reverse case processing

Contact the payee to discuss collection options:

If the case was private collect prior to the roles reversing, discuss collection option with the payee. Private collect is the preferred option for customers, advise the applicant of the following benefits of private collection:

• customers can more readily re-negotiate the way in which payments are made if either of their circumstances change
• payments can potentially be made and received more quickly
• payments made privately can commence at any time
• customers have less involvement with Child Support
• customers can decide if any or all payments will be ‘in-kind’ or made to ‘third parties’

Advise the customer of the following private collect payment options:

• bank transfer – check with their bank as this could involve a fee
• salary deductions – the payer can check with their payroll section to see if this option is available, that is splitting their pay into 2 accounts
• personal cheque – there may be clearance times for personal cheques
• bank cheque/money orders – money orders can be obtained from Australia Post, bank cheques through their bank
• cash – keep receipts to show the payment was for child support

When processing an initial reverse case that has not yet been ‘Accepted’: ensure that it is registered as Child Support collect. The collection status is to then either:

• Remain collectable where the payee could not be contacted or where the payee did not wish to manage child support privately, or
• Be Opted Out, but only where there is clearly a payee election to collect child support payments privately

When processing an initial reverse case that has already been ‘Accepted’ in the default position of private collect and the Payee requests:

• Private collection:
• do not change the collection status, and
• ensure the payee’s private collect election is clearly documented in Cuba
• Child support collection:
• Manually Opt In the case from the effective date of the role reversal. Explain this manual processing to the payee while they are on the phone
• On the same day that the system generated opt in letters are issued, also issue a manual 'PYR Role Reversal' case opt-in letter to the payer of the case, to advise them that the change in collection status was a result of a decision made by Services Australia, not by the payee. The Resources page contains a link to this manual letter

Note: if unable to contact the payee by phone, do not change the collection status:

• Leave the collection status of the reverse case as private collect
• A manual 'PYE Role Reversal' options letter must be sent to the payee to advise them of their collection options. The Resources page contains a link to this manual letter

If after the initial reverse case and 'Cust role change case mgt' intray has been finalised, it is later identified that an initial reverse case was not registered for collection in accordance with the 2 May 2016 collection policy, and the payee requests that the collection method is retrospectively reviewed, see Correcting errors on Child Support cases.

Contact the customer who is now the payer to discuss why the role change has occurred, for example change of care or new incomes.

When completing an application discuss and document the following:

• why the role change has occurred
• lodgement of tax returns if default incomes are in place
• collection method of the case (conduct pre-collection interview if applicable)
• disbursement cycle
• payment options for any child support arrears owed to the other parent (who is now the payer, for example if the role reversal is a retrospective change):
• debt offset
• employment withholding
• manual payments, see Debt repayment(CS)
• objection rights
• uncredited non-agency payments, see Collecting child support payments privately and/or discharging arrears

Record the outbound customer contact in the Communication Window as per below:

Type: PHONE OUT

Case: select relevant case number

Reason: PROVIDE INFORM

With: CLIENT

Category: REGISTRATION

Issue: REGISTRN

This will prevent an Eligibility window error message generating about mandatory contact not being made.

• If the reverse case was created automatically and all post action has occurred to ensure the accuracy of each case, go to Step 2
• If the reverse case needed to be created manually in accordance with the Assessments Cuba Process Help, and all actions have been completed to ensure the accuracy of each case:
• save eligibility to accept the reverse case
• check the accuracy of all letters
• go to Step 2

System letters will generate to both customers when a reverse case is started and each time roles reverse.

Check that the correct letters will generate for both customers and as outlined in this procedure, in some circumstances issue a manual letter. See the Resources page for a list of these manual letters.

A payee of a case can elect to end an assessment. Where reverse cases exist, the role of payee will be determined by the role in the newly created reverse case. Any party to a child support agreement can also elect to end an assessment if the agreement initiated the child support case and the agreement is currently suspended, see Ending a Child Support assessment.

Note: if it is not clear whether the customer can elect to end a case for a particular child, seek SSO support, see Technical support in Child Support.

When a customer’s role changes from payer to payee a reverse case is created without an application for assessment being made. This is because an application was already made and accepted at the start of the original case. A reverse case must be created, however the payee may elect to end the case, see Ending a Child Support assessment.

If an election to end is received and both cases have a $0 annual rate, see Complex system processing for reverse child support cases.