Suspension of child support liability on reconciliation 277-03110000

Child Support may receive notification that parents have reconciled, verbally or in writing, from 1 or both parents or a third party such as Centrelink.

If notification received verbally:

• obtain the date the parents became members of the same couple, that is, reconciled
• confirm the care arrangements of all children, including relevant dependent children
• confirm any new address or contact details for both parents

Non-parent carers and parents reconciling

Do not suspend the child support liability if a non-parent carer has at least 35% care of a child and the parents of that child reconcile. The parents will still be required to pay child support to the non-parent carer. See Application for assessment - non-parent carer.

References has a link to the Child Support Guide 2.10.1: Suspension of liability to pay child support when parents reconcile.

If the case is already suspended due to reconciliation and the parents have separated see Subsequent separation table.

To process a Reconciliation Review Required intray see Step 6 in the Customers subsequently separate after liability has been suspended table.

When Child Support is notified of the reconciliation by:

• a parent, contact the other parent to confirm
• a third party, contact both parents to confirm

See Contact with Child Support customers.

Confirm and update address and contact details - at least 1 of the customers usually changes address upon reconciliation.

Obtain the following details from each customer. Record the details in the Case/Registration notepad:

• date of reconciliation
• care arrangements of children, including relevant dependent children

When customers reconcile they have 2 options, either the:

• case can be ended see Ending a Child Support assessment, or
• liability can be suspended for 6 months from the date of reconciliation

When talking with customers, explain both options to both customers

The benefit of suspending the liability

• Provides customers with a 6 month period before making decisions about their child support case, and
• During the suspension period child support does not accrue against the payer

Suspension of liability option is chosen

If suspension of liability option is chosen, explain to the parents:

• The child support liability will end 6 months after the reconciliation date
• The parents must contact Child Support if they separate again before the end of the 6 month reconciliation period
• Child Support will not contact them again to check before ending the liability 6 months later

If there are no contact details for either or both customers recorded on Cuba, see Customer location (Tracing).

If unable to contact the parties by phone, send the manual UQ5.01 – Potential reconciliation contact letter.

If unable to speak to either or both parents refer to Centrelink information for a case by case decision.

The Service Officer must be satisfied of:

• customers genuinely being reconciled:
• If they have not genuinely reconciled go to Step 3
• date the customers agree they reconciled:
• If they do not agree on the date, consider this a dispute
• Obtain evidence from both customers and Centrelink to confirm the date the customers reconciled

If not satisfied the customers have reconciled, refuse to suspend the liability.

• contact both parents
• advise them of the decision and the reasons for refusing to suspend the liability
• see Assessments Cuba Process Help

Generate a unique letter

Send the letter to both customers using the UQ5.00 - Request to Suspend Liability refused - Applicant letter.

Select the appropriate reasons for refusing to suspend the liability. See Letters Cuba Process Help, Create a unique letter.

Document the discussions with both parents and the reasons for any decisions made.

When customers reconcile the 2 options are:

• case can be ended, see Ending a Child Support assessment, or
• liability can be suspended for 6 months from the date of reconciliation

On reconciliation when child support arrears are owed they can be:

• collected by Child Support, or
• discharged by the payee

A discharge of arrears on reconciliation does not require the case to be ended. The payee can:

• make the case private collect, before the suspension is put in place, and then discharge the arrears, or
• elect to end the assessment rather than suspending the liability, and then discharge the arrears

Note: regardless how much FTB a payee receives, they can elect to end an assessment. They can do this verbally, electronically, by using the Ending a child support assessment form or in writing. Resources has a link to the form

Does the payee want to end their case?

• Yes, follow the process in Ending a Child Support assessment
• No, their decision is to suspend the liability, go to Step 2

• Determine the reconciliation date
• Update contact details for either parent
• Process and accept the suspension of liability in the Service Option dialogue box in the Case/Registration window of Cuba. For additional information see Assessments Cuba Process Help. Note: this must be completed before updating care records to allow care of greater than 100% to be accepted

To ensure the correct letters are generated to the customers, in all circumstances select CSA as the applicant in the reconciliation details dialogue box.

Go to the Involvement List window of each parent to determine if either parent has another child support case.

• If either parent has another active case, go to Step 4
• If neither parent has another active case, go to Step 5

Parents may have other active cases which are assessed using an overseas liability.

It is not necessary to record the children from the suspended case as relevant dependants in these cases.

References has a link to the Child Support Guide 3.6.1: Registrable overseas maintenance liabilities

For all other cases

Add the previously claimed for children from the suspended case as relevant dependents on any other of the parents’ cases. Add them from the date of reconciliation.

This means the assessment uses the correct relevant dependent child allowance. See Assessment Cuba Process Help, Add a relevant dependent to a case.

Record the children of the reconciled parents as being in the care of both parents. Usually the children will be in the 100% care of each parent.

To reflect the care of the child of the suspended liability correctly, update the record in the Care window to show the:

• event date as the date of reconciliation
• date of notification as the date of reconciliation

The 28 day timeframe for notification does not apply here.

If another person has a level of care, reflect that care. See Change in child support care levels from 1 July 2018 (15 May 2019 for WA Ex-nuptial cases).

Example

A grandparent has 40% care and the parents together have 60% care. Process and accept the reconciliation before updating care. Otherwise Cuba will not be able to save a 100/100 care record.

If unable to save the care record with these details, contact a Service Support Officer.

Explain to the customers:

• Only the ongoing liability will be suspended, the collection of arrears cannot be suspended
• Child Support must continue to collect the arrears but will not actively pursue collection during the suspension period.

If arrears collection is already in place it must continue but do not initiate further collection action. For example take TRIPs but do not send s72a notices.

Also discuss with the payee the option to collect the arrears privately:

• elect to opt out of collection by Child Support, and
• administratively discharge the arrears from collection

Ensure the payee understands the finality if they decide on this option. See Collecting child support payments privately and/or discharging arrears.

If the suspension of liabilities creates an overpayment for the payee, discuss with both parents. The payer may choose to:

• waive the overpayment, or
• have the payee repay the amount

See Information for payers about child support overpayments

Are child support payments being made via a third party such as an employer or Centrelink?

• Yes, end the deductions if:
• the parent having child support deducted is not a payer in another assessment and
• there are no arrears on the case

For information about how to end the collection method, follow the process in:

• Collection of child support debts through third parties (s72A and s72AC)
• Employer Withholding (linking) for Child Support customers, or
• Centrelink deductions used to collect child support debts

• No, if there are arrears on the case, go to Step 8

Disregard any unallocated NAP remaining on a case following a suspension due to reconciliation or an election to end.

If the parents separate again within the suspension period, the assessment will be reinstated without the need for a new application for assessment. However, any disregarded NAPs will not be applied to future periods.

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 unallocated NAP, see Table 13 Enforceable maintenance liability ended or opted out with unallocated NAP remaining in Non-agency payment (NAP).

• Save suspension details
• End any collection methods, if appropriate
• Reflect the previously multi case children as relevant dependent children
• Run eligibility

Check the eligibility results before saving to ensure:

• the children of the suspended case continue to be included in the assessment of the parents' other cases as ‘multi case children’ up to and including the day before reconciliation
• the children of the suspended case are included in the assessment of the parents’ other cases as relevant dependent children from the day of the reconciliation. Multi case allowance no longer applies for those children but a relevant dependent allowance does apply
• all changes that are being made to the assessment have been understood and that all changes are correct

Once eligibility has been saved, the following letter will automatically be issued by Cuba:

• MEA2-2 CSA Advice Assessment Suspended Due to Reconciliation letters issued to both parents. This occurs when the reconciliation information is received either from a customer or from Child Support

If Child Support become aware the parents have subsequently separated, contact both parents to confirm the details. See Contact with Child Support customers.

Note: if the customer says family and domestic violence was the reason for the subsequent separation and contacting the other parent may cause difficulties. Contact a Service Support Officer or Program Support Manager to discuss strategies on how to manage this before to contacting the other parent.
If the payee suggests that they would like to end the assessment, see Ending a Child Support assessment.

Confirm, update and document the following details with each customer:

• date of separation
• address and contact details
• care arrangements of children. This includes relevant dependent children and the children of the suspended case
• income details, include discussion of options of estimate, COA, agreements
• employer details if necessary

If unable to contact 1 or both customers using the contact details recorded on Cuba, see Customer location (Tracing).

If the parents do not agree on the subsequent separation date:

• consider it a dispute
• obtain evidence from both parents
• seek Centrelink information about the date the parents subsequently separated
• make a decision

Subsequent separation date occurred:

• within 6 months of reconciliation, go to Step 2
• more than 6 months from reconciliation:
• it is a terminating event, the case must end
• go to Step 6

If parents separated within 6 months of reconciliation and their liability is suspended reinstate it. Enter the day before the date of re-separation in the End Suspension Date field.

Example

Parents reconciled on 12 February 2018 and subsequently separated on the 14 June 2018 (within 6 months). The end suspension date will be 13 June 2018. Recording the correct case end suspension date, prevents an assessment creating for 1 day.

To reinstate the liability see Assessments Cuba Process Help.

Note: the payee cannot request arrears for a period during which the liability was suspended.

Document the discussions with both parents and the reasons for any decisions made.

To determine the care level that should be recorded in Cuba for the children of the suspended case, see Change in child support care levels from 1 July 2018 (15 May 2019 for WA Ex-nuptial cases)

Update in the Care window to reflect the current care levels for each child of the suspended liability using the separation date as the:

• event date and
• date of notification

Update the care if either parent advises of changes to care levels of each:

• child in their other cases or
• relevant dependent child who is not a child of the suspended case

See Change in child support care levels from 1 July 2018 (15 May 2019 for WA Ex-nuptial cases).

Once the case has been updated run eligibility. Check the eligibility results before saving.

The children of the previously suspended case must:

• continue to be included in the assessment of the parents’ other cases. They must be listed as relevant dependent children from the start of the suspension period (the date of reconciliation) to the end of the suspension period (the day before the re-separation date)
• be included in the assessment of the parents’ other cases as multi case children from the day of the re-separation. The relevant dependent allowance no longer applies for those children, a multi case allowance applies instead

Note: understand all changes being made to the assessment and that all changes are correct.

Once eligibility is saved this letter will automatically be issued by Cuba:

• Mac 1-4 – Change to annual rate (with appropriate assessment letters)

Discuss with the payer their options to make payment of their ongoing child support. If the payer refuses to make voluntary payments take collection action. See:

• Debt repayment
• Centrelink deductions used to collect child support debts
• Employer Withholding (linking) for Child Support customers, or
• Collection of child support debts through third parties (s72A and s72AC)

Cuba generates a Reconciliation Review Required intray 3 days before the end of the sixth month from reconciliation.

The Service Officer must be satisfied the customers remain reconciled and have not separated again.

Check the case:

• communication notepads for both customers since the reconciliation date
• case notepads
• External information window for further changes to the RELS indicator
• Client benefits window, if any of the children are under 16.

If the Client benefits screen shows either customer as being paid Parenting Payment single, the parents have probably separated. Investigate further.

Do the customers remain reconciled?

• Yes, go to Step 7
• No or unsure, contact the customers

A terminating event occurs if parents chose to suspend liability on reconciliation and they remain reconciled for 6 months after the date of reconciliation.

Exception

If a child is in the care of a non-parent carer with at least 35% care, the child support liability is not suspended on reconciliation. The parents are still required to pay child support to the non-parent carer.

References has a link to the Child Support Guide 2.10.1: Suspension of liability to pay child support when parents reconcile.

Is it documented the customers were informed the liability will end without further notice 6 months after the date of reconciliation?

• Yes, no further contact is required, go to Step 8
• No, contact the customers to determine their status

If the customers advise they have subsequently separated:

• before the end of the sixth month from reconciliation. Go to Step 1
• after the case has ended:
• either parent can apply for an assessment
• follow the process in Applications for a child support assessment

If the customers have remained reconciled for more than 6 months, a terminating event has occurred, go to Step 8

End the suspension period first before ending the case.

See Table 8 End an assessment due to reconciliation in Assessments Cuba Process Help.

Select:

• Service Options button, and
• Reconciliation Details box

In the End Suspension Date field - record the last day of the 6 month suspension period

Select Save in the Case/Registration window

Run Eligibility but do not save

Select:

• Service Options button
• Reconciliation Details box and
• End Case radio button

Record the end date as last day of the 6 month suspension period.

• Accept and save these details
• Run Eligibility but do not save
• Check pre-confirmation results, if correct Save the updates

See Terminating events (Stage 2).