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Complex system processing for reverse child support cases 277-03020020

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This page contains information about the system processing requirements for reverse child support cases. It contains processes for Service Officers (SO), Service Support Officers (SSO) and Program Support Managers (PSM).

On this page:

System processing steps of SSOs and PSMs

Cuba processing for reverse cases where income discrepancies exist

Cuba processing for reverse cases where mixed assessments exist

Cuba processing for reverse non-parent carer cases

Cuba processing for reverse cases impacted by other events

System processing steps of SSOs and PSMs

Table 1: this table describes the process SSOs and PSMs follow to resolve complex system processing for reverse child support cases.

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Step

Action

1

Complex reverse case factors that may impact assessment accuracy

When a role reversal occurs there are a number of factors that can impact the assessment accuracy. Most reverse case processing discrepancies can be resolved by Service Officers following the process in Managing reverse child support cases.

For more complex reverse case system issues, Service Officers must refer to their SSO to investigate. Complex reverse case system issues include:

  • Income discrepancies
  • Mixed Assessments
  • Non-parent carer cases
  • Other events such as:
    • child returns to parent’s care and formula departure applies
    • terminating event due to reconciliation
    • terminating event due to not being advised of a change in care within 26 weeks
    • apply post separation income to reverse case
    • both cases ended after payee election to end
    • international customers

Cuba processing for reverse cases where income discrepancies exist

Table 2: this table describes the process followed by SSOs and PSMs where reverse case income discrepancies exist.

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Step

Action

1

Amended taxable income incorrectly applied

As of 23 May 2018, a parent’s amended taxable income will be used in most circumstances, see Australian Taxation Office (ATO) income for Child Support customers.

The SSO:

  • Applies an interim formula modification to set the annual rate based on the correct Adjusted Taxable Income (ATI) (original taxable income or amended taxable income) used in the originating case, see Agreements Cuba Process Help
  • Completes a Cuba Incident Form (CIF) and forwards this for EL2 approval
  • Once the CIF is processed, deletes the formula modification
  • Records their actions in the Case window of all cases

2

Apply estimate to reverse case (from 2 July 2010)

When a parent lodges an estimate of income it should be applied to all active cases the customer is party to (regardless of role). However, this does not occur in all instances. If a reverse case automatically generates the estimate of income is not automatically applied to this reverse case.

Manual processing is required to apply the estimate to the reverse case.

Otherwise, the SSO:

3

Apply estimate to reverse case (1 July 2008 to 1 July 2010)

When a customer lodged an estimate of income between 1 July 2008 and 1 July 2010 Cuba did not automatically apply the estimate to all cases and it was possible to select the estimate to apply to only one case. During that period, Cuba prompted the Service Officer to select all cases with the same CS Period start date, however this was not a mandatory action, and some cases did not have the estimate applied appropriately.

After the processes in Correcting errors on child support cases have been completed (as real time processing will never apply to these cases), manual processing is required to correct the error.

The SSO manually applies the estimate/s retrospectively to all cases, see Estimates Cuba Process Help.

4

Estimates when child support period (CS Period) not aligned (1 July 2008 to 1 July 2010)

A new CS Period does not commence just because a parent’s role changes, and a reverse case is generated. The CS Period start date used in the reverse case is the same as the date used in the existing case, however Cuba does not always apply the original CS Period and instead commences a new one using the date the roles reversed.

In this instance, a customer may have estimated their income for a CS Period that was incorrect. When the CS Period is aligned the estimate is revoked. This issue only involves estimates that apply from 1 July 2008 to 30 June 2010.

As aligning the CS Periods revokes the estimate the customer must apply through the courts to have this changed.

The customer cannot apply through the Change of Assessment process as this period is greater than 18 months. The References page contains a link to the Child Support Guide 10.4.2 Applications & orders about decisions under the CSA Act.

Note: do not apply system processing to correct this assessment.

5

Check letters are correct

Duplicate letters may issue to customers who have a reverse case where the customer is recorded as the payee in one case and the payer in the other, for example when the customer lodges an estimate of income a letter will issue for each case, even though they are assessed to either pay child support as the ‘overall payer’ or receive child support as the ‘overall payee’.

In some instances, such as when a customer’s Post Separation Income (PSI) is accepted, a letter issues from both cases but without a case number specified.

After processing changes to reverse cases check that all letters issuing are appropriate.


Cuba processing for reverse cases where mixed assessments exist

Table 3: this table describes the process steps followed by SSOs and PSMs to process a reverse case in Cuba for cases where a mixed assessment exists.

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Step

Action

1

Mixed assessments

A mixed assessment occurs when child support for some of the children of a case is assessed using the formula and other children are covered by an agreement, court varied assessment (CVA) or change of assessment (COA) decision. This may occur when an agreement, CVA or COA has only ever applied to some of the children or if it stops applying to some of the children because of a change in circumstances.

Manual processing is required to ensure the:

  • CS Periods are aligned
  • the assessments are being accurately reflected and
  • liability is being correctly raised on only one case (even though the caring arrangements may be reflected via multiple cases)

2

Check for an agreement

Agreement suspensions and terminations due to care

If the assessment is based on an agreement and a care change result in the payee ceasing to be an eligible carer for the child (less than 35% care) for more than 28 days, the agreement will end for that child from the date the payee ceased to be an eligible carer. An agreement suspension period may apply for 28 days (or up to 26 weeks in some circumstances). See Suspending or ending a child support agreement due to care.

If the agreement continues to apply for another child/ren, manual processing may be required to determine the net annual rate payable via a mixed assessment:

  • in the Case Liability Rates window:
    • open the liability for the current period
    • check the ‘payee’s annual rate’ to determine the amount of child support payable by the payee now they have ceased to be an eligible carer
  • in the Clauses window:
    • reduce the annual rate using a formula modification (another clause)

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

Agreement role swap clauses

If the agreement has a clause that allows the roles of the parties to swap when there is a care change and the clause has been activated, the agreement will not be suspended or terminated if the payee ceases to be an eligible carer. Child support as provided by the agreement will become payable to the other party when the specified level of care applies. See Managing Changes affecting a child support agreement.

If there are other children on the agreement not affected by the role swap clause and the overall roles of payer and payee do not change, manual processing will be required to determine the net annual rate payable by offsetting the 2 agreement rates:

  • in the Clauses window:
    • reduce the annual rate using a formula modification (another clause)

If the overall roles of payer and payee do change, a reverse case will need to be created, and an agreement registration will need to be entered on the new case. The original case will also need to be modified:

  • in the Clauses window:
    • enter a clause to reduce the amount by 100%

If there are other children on the agreement not affected by the role swap clause, manual processing will also be required on the reverse case to determine the net annual rate payable by offsetting the 2 agreement rates:

  • in the Clauses window:
    • reduce the annual rate using a formula modification (another clause)

Once the appropriate modifications have been keyed, accept the agreement. Delete agreement acceptance letters (REG5-1/2 letters), however the PNA that is created should still be sent to both parents.

3

Shared or divided care cases

Manual processing is required when the children of the case are in shared or divided care and one party is assessed to pay in accordance with the child support formula, whereas the other party is assessed to pay in accordance with a departure. This is because Cuba does not automatically offset the 2 amounts and instead creates an annual rate in each of the cases.

Example: Mike and Fiona have 2 children, John, and Travis. Initially both children are in Fiona’s 100% care. Mike is assessed to pay Fiona periodic amounts of $6,000 per child per annum ($12,000 total) in accordance with a change of assessment (COA) decision.

A care change occurs resulting in John moving into Mike’s 100% care (Travis remains in Fiona’s 100% care). Mike is assessed to pay Fiona an amount of $6,000 for Travis (as per the COA decision) and Fiona is assessed to pay Mike a formula amount of $4,904 for Travis.

The net outcome is Mike pays Fiona the difference of $1,096 ($6,000 COA less $4,904 formula = $1,096).

Manual processing is required to determine the net annual rate by offsetting the 2 amounts.

The SSO:

  • Using the PSM enquiry macro, create and send a referral request to the Program Support Manager

The PSM:

  • In the Formula Modification window:
    • enters a clause to reduce the amount by 100%, or
    • reduces the annual rate using a formula modification (another clause)
    • records their actions in the Case window for each case

4

Estimate lodged in case where an income amount order does not apply to all children

In one child support case there may be separate assessments for children, for example the assessment for one child may be based on an agreement and the other on the administrative formula. A parent may make an estimate election in the assessment where there is no Income Amount Order (IAO) in place. As Cuba does not recognise that in one child support case the assessments for each child are determined independently the estimate cannot be accepted as an IAO is in place, even if it does not apply to all children.

The customer must apply for a change of assessment to have their income taken into account in this circumstance.

5

Calculating mixed assessments and Cuba

Calculate the mixed assessment by completing a manual calculation, using the Child support formula calculator.

If a manual mixed assessment needs to be applied for the first time or an existing mixed assessment needs to be recalculated to a new amount, record the manual calculations in the Formula Modification Window including the following standardised documentation:

'This mixed assessment calculation is based on the current formula and departure amounts. If a new event occurs that would ordinarily vary the formula or departure amounts, for example a new income is received; or a care change occurs, this mixed assessment will need to be recalculated and reapplied via the formula modification window - please contact an SSO'.

Add a Special Contact to the Customer windows of both customers. Add a notepad with the subject heading ‘Mixed Asst. Formula Modification’ with the following standardised documentation:

‘This mixed assessment calculation is based on the current formula and departure amounts. If a new event occurs that would ordinarily vary the formula or departure amounts, for example a new income is received; or a care change occurs, this mixed assessment will need to be recalculated and reapplied via the formula modification window - please contact an SSO.’

If a retrospective mixed assessment period is to be amended, see Correcting errors on child support cases.

6

Check letters are correct

Duplicate letters may issue to customers who have a reverse case where the customer is recorded as the payee in one case and the payer in the other, for example when the customer lodges an estimate of income a letter will issue for each case, even though they are assessed to either pay child support as the ‘overall payer’ or receive child support as the ‘overall payee’.

In some instances, such as when a customer’s Post Separation Income (PSI) is accepted, a letter issues from both cases but without a case number specified.

After processing changes to reverse cases check that all letters issuing are appropriate.


Cuba processing for reverse non-parent carer cases

Table 4: this table describes the Cuba processing requirements for processing reverse non-parent carer cases.

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Step

Action

1

Estimate not applied to all cases

When a parent lodges an estimate of income this is used as their income in any calculation that determines the cost of the child. Where the applicant is a non-parent carer the costs of the child are determined using both parents’ incomes. This means the estimate should be used in the cost of child calculations on all cases where there is a non-parent carer.

As Cuba does not automatically apply a parent’s estimate to all cases manual processing is required.

Example: Jackie and George have 3 children. Zara lives with Jackie, Peter lives with George and Kara lives with Polly. Cuba represents this scenario in at least 3 cases. If George lodges an estimate, it must be applied to all cases. Cuba automatically applies the estimate to some cases; however manual processing is required to ensure the estimate is accurately reflected in all cases.

The SSO:

2

Alignment of incomes where both parents are liable to pay a non-parent carer

Where an income is updated for a parent who is liable to pay a non-parent carer, Cuba does not always apply that new income to the case where the parent has the role of ‘other liable parent.’ This means that the parent is assessed on different incomes within the same legislative case.

Complete the processes in Correcting errors on Child Support cases. Once completed, if a decision is made to correct the error, manual processing is required.

The SSO:

  • Completes a manual calculation for the assessment and adds a formula modification for this amount. See Agreements Cuba Process Help, Add, update or delete a formula modification
  • Records the manual calculations in the Case window for each case
  • Uses the PSM enquiry macro, to create and send a referral request to the Program Support Manager

The PSM:

  • Checks the accuracy of the calculations in all cases
  • Corrects the calculations if required and records these in the Case window
  • Records their approval in the Case window for each case
  • Refers the case back to the SSO for processing. If customer contact is required, this is completed by the owning Service Officer. See Contact with Child Support customers

3

Children from multiple cases

Where a non-parent carer cares for children from more than one assessment case Cuba does not reflect the 2 different incomes that should be used in the assessment. In the below example, the father’s income would be the same for both children but as each child has a different mother their assessments need to be based on their own mother’s income. As Cuba shows both children on one case instead of 2, manual processing is required.

Example

Jane has 100% care of 2 children (Billie and Marley). Billie is the child of Craig and Lisa. Marley is the child of Craig and Sammy. Jane applies for Craig and Lisa to be assessed for child support for Billie and Craig and Sammy to be assessed for child support for Marley. Manual processing is required because Cuba reflects the liability of Craig in a single case when Craig should be assessed in 2 separate cases.

The SSO:

  • Identifies the correct CS Period, basic values, and incomes to be used in all assessments
  • Completes a manual calculation for each child using the formula most relevant to the particulars of each case. Section 2.4.1 of the Guide provides the following formulas:
    • Formula 1 - the basic formula, for a single child support case (section 35). See Chapter 2.4.7
    • Formula 2 - for a single child support case with a non-parent carer (section 36). See Chapter 2.4.8
    • Formula 3 - if one or both of the parents have multiple child support cases (section 37). See Chapter 2.4.9
    • Formula 4 - if a parent has multiple child support cases and there is a non-parent carer for one or more children (section 38). See Chapter 2.4.9
    • Formula 5 - for a child support case with a non-parent carer where one parent is not assessed because they are not a resident of Australia or there are special circumstances (section 39). See Chapter 2.4.10
    • Formula 6 - for a child support case with a non-parent carer where one parent is deceased (section 40). See Chapter 2.4.10
  • Records the manual calculations in the Case window for each case
  • Uses the PSM enquiry macro, to create and send a referral request to the Program Support Manager

The PSM:

  • Checks the accuracy of the calculations in all cases
  • Corrects the calculations if required and records these in the Case window
  • Records their approval in the Case window for each case
  • Refers the case back to the SSO for processing. If customer contact is required this is completed by the owning Service Officer, see Contact with Child Support customers

4

Multi case allowance/cap incorrectly applied

Manual processing is required for cases where the multi case cap or multi case allowance has been incorrectly applied.

The SSO:

  • Checks the care details of all children are accurately reflected in all cases
  • Completes a manual calculation for each case using the Child support formula calculator
  • Records the manual calculations in the Case window for each case
  • Uses the PSM enquiry macro, to create and send a referral request to the Program Support Manager

The PSM:

  • Checks the accuracy of the calculations in all cases
  • Corrects the calculations if required and records these in the Case window
  • Records their approval in the Case window for each case
  • Refers the case back to the SSO for processing. If customer contact is required this is completed by the owning Service Officer, see Contact with Child Support customers

5

Children of the case shown as relevant dependent children

Cuba may reflect some eligible children in non-parent carer cases as relevant dependent children.

Manual processing is required to accurately reflect the eligible children.

Example: Ross and Taylor have a case for 2 children. Ross also has a case with Brooke for Corey who is in shared care. Cuba incorrectly applies both a multi-case allowance and dependent allowance for Corey. Ross should only receive the multi-case allowance.

The SSO:

  • Completes a manual calculation for the assessment using the Child support formula calculator, and add a formula modification for this amount. See Agreements Cuba Process Help, Add, update or delete a formula modification
  • Records the manual calculations in the Case window for each case
  • Uses the PSM enquiry macro, to create and send a referral request to the Program Support Manager

The PSM:

  • Checks the accuracy of the calculations in all cases
  • Corrects the calculations if required and records these in the Case window
  • Records their approval in the Case window for each case
  • Refers the case back to the SSO for processing

Note: if customer contact is required it is completed by the owning Service Officer, see Contact with Child Support customers.

6

Formula components incorrectly applied

Manual processing is required if Cuba incorrectly applies a component of the formula, for example cost of children or relevant dependent allowance.

The SSO:

  • Completes a manual calculation for the assessment using the Child support formula calculator and add a formula modification for this amount. See Agreements Cuba Process Help - Add, update or delete a formula modification
  • Records the manual calculations in the Case window for each case
  • Uses the PSM enquiry macro, to create and send a referral request to the Program Support Manager

The PSM:

  • Checks the accuracy of the calculations in all cases
  • Corrects the calculations if required and records these in the Case window
  • Records their approval in the Case window for each case
  • Refers the case back to the SSO for processing. If customer contact is required, this is completed by the owning Service Officer. See Contact with Child Support customers

7

Check letters are correct

Duplicate letters may issue to customers who have a reverse case where the customer is recorded as the payee in one case and the payer in the other, for example when the customer lodges an estimate of income a letter will issue for each case, even though they are assessed to either pay child support as the ‘overall payer’ or receive child support as the ‘overall payee’.

In some instances, such as when a customer’s Post Separation Income (PSI) is accepted, a letter issues from both cases but without a case number specified.

After processing changes to reverse cases check that all letters issuing are appropriate.


Cuba processing for reverse cases impacted by other events

Table 5: this table describes the steps followed by SSOs and PSMs to process a reverse case in Cuba for cases impacted by particular events.

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Item

Description

1

Child returns to parent’s care and formula departure applies

When a child returns to a parent’s care during a period where a CVA or change of assessment applies Cuba does not automatically apply the departure amount and manual processing is required.

The SSO refers the case to a PSM. The PSM:

  • determines whether the formula departure should be applied
  • records their actions in the Case window
  • refers the case back to the SSO to add the children. See Assessments Cuba Process Help, Add a child to a case

Note: if customer contact is required this is completed by the owning Service Officer, see Contact with Child Support customers

2

Terminating event due to reconciliation

Post 1 July 2008, when customers are reconciled for more than 6 months the child support case/s end as this is defined as a terminating event. See Terminating events (Stage 2).

Manual processing is required if there is an agreement, CVA or change of assessment in place.

The SSO:

3

Terminating event due to care advised more than 26 weeks from date of event

Where a customer has indicated, they would like to reapply for child support after a care terminating event (care advised 26 weeks or more after event and all carers cease to be eligible), the case should be restarted from the date the request was made.

Online applications, macros and guided processes in Pluto ask customers if they want to apply for a new assessment if their care change causes their assessment to end. The customer’s response to this question will be stored in a notepad. If a customer has asked to reapply for an assessment, the assessment will restart for the date this question was answered.

As the child support assessment will be active until eligibility is run following the acceptance of the care change, the child support assessment can be restarted by the owning officer without the need for a referral to New Customers. Follow the process for creating a reverse case with the following exceptions:

  • assessment will begin on the day the application was made
  • customers must be contacted to identify what collection method they require
  • CS Periods will not be aligned
  • formula departures: most formula departures, that is, change of assessment (COA), agreements (AGR) and court orders (CO) will not survive a terminating event. The only exceptions are a non-periodic payments clause in an agreement that does not affect the annual rate and lump sum crediting provisions in a binding agreement. However, these will not apply again until the payee named in the agreement again becomes an eligible carer
  • estimates: if there was an estimate of income in place for either parent prior to the terminating event, contact the estimating parent to discuss their income:
    • if the estimate was in place prior to the terminating event and the case is restarted within the same financial year and the parent does not revoke the estimate, the estimate should be used as that parent’s income in the restarted assessment
    • if the estimate election was made during a period when the case had ended, that is after change in care occurred, ask the customer if they wish to lodge a new estimate election

4

Apply post separation income to reverse case

A customer can apply to have additional income earned after separation excluded from their adjusted taxable income, referred to as post separation income (PSI). See Post separation income for Child Support customers.

Manual processing is required to reflect the PSI in both cases.

The SSO:

5

Both cases ended after payee election to end

Where both parents are eligible carers, a reverse case will exist. One case may have an annual rate, and the other case must have a $0 annual rate. In these circumstances the payee for the overall case is easily identified as they are the parent entitled to receive child support.

However, in cases where both annual rates are $0 for example neither parent is assessed to pay child support because both parents are on a low income it is unclear which parent is the payee when determining who is eligible to elect to end the assessment.

For details on how elections to end can be made in cases where the liability is $0 see Ending a child support assessment.

If a parent elects to end an assessment, this can have Centrelink implications if the other parent (the payer for child support purposes) is in receipt of Family Tax Benefit (FTB) and is still required to take reasonable maintenance action.

If there are reverse cases, Centrelink must be advised both cases have ended and which children the election applies to. Centrelink may need to add coding to reflect that the other parent is taking reasonable maintenance action.

The SSO: advises Centrelink that both cases have ended due to a payee election. See Centrelink-Child Support information exchange

6

International

One parent resides in a non-reciprocating jurisdiction

Where eligible ‘claimed for’ child/ren change care from a parent/carer residing in a non-reciprocating jurisdiction, to the parent/carer in Australia, this may result in a terminating event for the child/ren who move to Australia. This is due to the liable party not being a resident of Australia, and not subject to an international maintenance arrangement.

Where the child/ren are not claimed for in an assessment as the liable party resides in a non-reciprocating jurisdiction, they may be added as relevant dependent/s.

See Add a child or relevant dependent to an existing child support assessment for eligibility and process.

See Resources for example.

One parent resides in New Zealand

Where care of the children is shared or divided between two parents, one of whom lives in New Zealand, the usual reverse case process of Cuba generating two linked cases to show each parent’s liability reflected in a single assessment cannot be applied due to the Australia & New Zealand Agreement. See Reverse child support cases.

There are two main issues:

  • Jurisdiction
  • Simultaneous recognition

Specific principles and processing instructions apply when one parent resides in New Zealand, regarding:

  • processing an application where the care is divided
  • care changes where the parent gaining care is in New Zealand
  • shared care between Australia and New Zealand

See Frequently asked questions on Resources.

Processing an application where the care is divided

The intention of the Australia & New Zealand Agreement is that Australia has jurisdiction to administer maintenance for children in Australia, and New Zealand has jurisdiction to administer maintenance for children in New Zealand.

If a parent living in Australia applies for an assessment for multiple children involving a parent in New Zealand, where each parent has more than 60% care of one or more children of the relationship:

  • The child/ren living in Australia will be assessed under an Australian assessment as ‘claimed for’ child/ren
  • The parent in New Zealand can apply to New Zealand Inland Revenue (NZIR) Child Support for child/ren who live in New Zealand
  • The child/ren in New Zealand will be recognised in the Australian assessment as relevant dependents of the parent in New Zealand. This approach is replicated in the New Zealand assessment by NZIR Child Support for child/ren in Australia
  • If the children in New Zealand come to live with the parent in Australia, the parent gaining care can apply for an Australian child support assessment for the child/ren

For information on how to register a NZ ‘In’ case, see New Zealand 'In' case management - Registrations between NZIR and Child Support – Receiving and Registering case.

The SO:

  • records the child/ren in Australia as ‘claimed for’ child/ren
  • records the child/ren in New Zealand as relevant dependents. Note: this may require duplicating the child’s record
  • documents clearly that this is a New Zealand divided care case, and the relevant dependents are child/ren of the relationship
  • records the document in a pending approval intray and completes a tech support online request in Cuba for SSO review
  • when SSO approval is received, saves the document in the case notes and runs eligibility
  • issues the standard letters
  • advises both parents the steps the agency is taking to process their application
  • completes follow up actions to inform New Zealand Inland revenue, where required

See:

The SSO:

  • confirms child/ren are keyed as claimed for or relevant dependent correctly, including checking duplicated profiles
  • confirms the document is accurate and SO has recorded this is a New Zealand divided care case and the relevant dependents are child/ren of the relationship
  • returns the item to the owning SO to complete follow up actions

See Resources for Frequently ask questions and Examples.

Care changes where the parent gaining care is in New Zealand

If one or more children in a case move to live with the parent in New Zealand for more than 60% of the time, the Australian assessment for the child/ren that move will end. If all child/ren of the relationship move to live in New Zealand more than 60% of the time, the whole case will end.

See Notification of change in child support care levels when a party contacts about the care change. Explain the following:

  • Australia does not have jurisdiction to continue to administer child support cases for children in New Zealand
  • The Australian assessment for the child/ren who have moved to New Zealand will be ended. If all of the children have moved to New Zealand, the whole case will be ended
  • The date from which the case ends will depend on the circumstances.
  • If the child/ren returns to Australia, the parent in Australia can reapply

The SO determines the date to end the child’s entitlement

The end date of the entitlement for the child/ren will be the earlier of:

  • the day prior to habitual residency being confirmed in relation to the parent in New Zealand, where the parent in New Zealand has not applied for child support for the child they now have in their care
  • the day prior to the parent in New Zealand applying for the child/ren now in their care, where the parent in New Zealand has applied for those child/ren

See Examples on Resources.

Note:

If the SO determines the end date of the case will be after the date the care change would take effect on the Australian assessment they will:

  • process the care change as normal and run eligibility. See Change in child support care levels
  • allow any reverse cases to create. If a reverse case has not started automatically when it should, it may need to be started manually. Seek SSO assistance. Note: a reverse case with a payee in New Zealand is acceptable and necessary in New Zealand cases as long as:
    • it only runs for the period it takes to confirm habitual residency under the Australia-New Zealand agreement, and
    • the parent in New Zealand has not applied for a New Zealand child support assessment
  • allow the system generated letters to issue (MEA1-9 - Change of Care)
  • change the care to ‘None/None’ from the date the case should end for the child/ren
  • document the changes clearly that this is a New Zealand divided care case, and that a workaround has been used. The notepad must reference this operational blueprint and that Australia does not have jurisdiction to continue to administer child support cases for children in New Zealand. Record your documents in a pending approval intray and complete a tech support online request in Cuba for SSO review
  • when SSO confirmation is received, save document in the case notes and run eligibility to end the case from the relevant date
  • delete any system generated letters (MEA1-4 & MEA1-5 – Terminating event has occurred)
  • issue a RES1-1 – Case end Habitual Residency Decision to both the payee (parent in New Zealand) and the payer (parent in Australia)

If the SO determines that the end date of the case will be before the date the care change would have otherwise taken effect on the Australian assessment they will:

  • key the care change to ‘None/None’ for the relevant child from the date the child/ren should end. If this applies to all children, update all children to ‘None/None’
  • document the changes clearly that this is a New Zealand divided care case, and that a workaround has been used. The notepad must reference this operational blueprint and that Australia does not have jurisdiction to continue to administer child support cases for children in New Zealand. Record your documents in a pending approval intray and complete a tech support online request in Cuba for SSO review
  • when SSO confirmation is received, run eligibility to end the case from the relevant date
  • delete any system generated letters (MEA1-9 - Change of Care)
  • issue a RES1-1 – Case end Habitual Residency Decision to both the parties.
  • complete follow up actions to inform New Zealand Inland revenue, where required

See:

Note: if the whole case does not terminate due to the care change, and the case will continue as care of the other children is divided between the parents, add the child who has moved to New Zealand as a relevant dependent on the NZ parent.

Do not use the NZ child record, used in the NZ ‘In’ case, when adding them as a relevant dependent in the Australian assessment. The NZ child record is only for use in NZ In cases.

If the child was a ‘claimed for’ child in the Australian assessment, a duplicate profile may be required to add them as a relevant dependent (‘not claimed for’) due to Cuba limitations. Seek SSO support if Cuba prevents a prior ‘claimed for’ child record to be added as a relevant dependent.

The SSO:

  • confirms the determined end date is correct and the care change to ‘None/None’ is keyed correctly
  • confirms the document of the changes is clear that a workaround has been used, references this operational blueprint, and that Australia does not have jurisdiction to continue to administer child support cases for children in New Zealand
  • returns the item to the owning SO to finalise and complete follow up actions

Note: if one or more of the children subsequently move back to live with the parent in Australia, the parent gaining care can re-apply for an Australian assessment for those children.

Shared care between Australia and New Zealand

Cases where care for the parent in New Zealand is regular or below regular can be treated as normal cases unless the circumstances indicate further follow-up might be required, such as:

  • A parent in Australia has gained care from a parent in New Zealand and there is evidence that there is a New Zealand case still active
  • There is a dispute between the Australian and New Zealand parent about how much care each party has and there is a New Zealand case still active

Where the New Zealand parent will have between 35% and 70% of the care the case must be escalated through the technical network to Child Support Program Branch for consideration. Each case must be assessed on its individual circumstances.

The SO:

  • raises an online technical support enquiry to the SSO. See Technical support Cuba Process Help
  • creates a Data Integrity Care intray and locks the customer and intray to themselves
  • completes required actions when item is returned

The SSO:

  • uses the PSM enquiry macro to create and send a referral request to the Program Support Manager

The PSM:

  • escalates the enquiry to the Child Support Program Advice Team. See Policy advice escalation process (CS)
  • when a response is received, refers the case back to the SSO for any processing. If customer contact is required, this is completed by the owning Service Officer.

See Examples on Resources.

7

Check letters are correct

Duplicate letters may issue to customers who have a reverse case where the customer is recorded as the payee in one case and the payer in the other. For example, when the customer lodges an estimate of income a letter will issue for each case, even though they are assessed to either pay child support as the ‘overall payer’ or receive child support as the ‘overall payee’.

In some instances, such as when a customer’s Post Separation Income (PSI) is accepted, a letter issues from both cases but without a case number specified.

After processing changes to reverse cases check that all letters issuing are appropriate.