Collecting child support payments privately and/or discharging arrears 277-04090000

When a payee registers a child support case, unless the payee chooses to privately collect child support, the case should be made collectable. Where the collection method of a case is child support collect, customers can choose to switch to private collection. This is referred to as ‘opting out’. Payees who opt-out, have the option to discharge child support arrears that are outstanding from a collect period.

Customers, courts and Child Support all use the term ‘discharge arrears’ to mean slightly different things. When the discharge function is used in Cuba the arrears are removed from the account and are no longer collectable by Child Support. The payee becomes responsible for collecting the arrears and can make payment arrangements directly with the payer. The payee can also enforce the arrears privately in court. Once arrears have been discharged, the payee cannot later ask Child Support to enforce them.

Customers and the court will sometimes use the term ‘discharge’ with no intention that the arrears will ever be paid. This could have unforeseen Centrelink consequences because Centrelink will deem that the child support arrears have been received by the payee. It is therefore essential that payees are referred to Centrelink for advice about the effect of their decision to discharge arrears on any Family Tax Benefit being paid.

Child Support encourages private collection arrangements between parents where possible. The benefits of private collection are:

• greater customer control and responsibility over their child support
• greater flexibility in payment type, method and frequency
• less cost to the community
• encouraging greater co-operation and communication between parents

Help both parents manage the change to private collect. Discuss with each parent their requirements and explain their options.