Recovering a Child Support debt from a Family Tax Benefit (FTB) 277-04200000

Check if the customer is liable to pay a debt for only 1 payee. FTB deductions are only used to recover a debt in single cases.

Do not request FTB deductions where the customer has a child support debt, overpayment or liability to Child Support for more than 1 customer.

Note: FTB deductions can only be used to collect child support arrears or an overpayment for an FTB eligible child.

FTB deductions cannot be used to satisfy liabilities arising from:

• a spousal maintenance order
• any amounts a customer owes for penalties for late payment or for an incorrect estimate
• costs and fines, or
• a section 143 (parentage overpayment) order

Check if the liability is in relation to an overseas maintenance liability.

FTB deductions cannot be used to collect an overseas maintenance liability debt.

If the debt is related to an overseas maintenance liability, including a New Zealand liability, procedure ends here.

Check the customer’s Client Benefits window to confirm that they are receiving FTB payments from Centrelink.

The External Information window identifies the designated child support child/ren for whom a customer is claiming FTB.

Use the Find External Information window, completing the fields with the following:

• Date From: a very early date will ensure all information is displayed
• Date To: defaults to today’s date
• Type Select: ‘CHILD INFO’
• Source: ‘CNLK’

To identify the need for ongoing deductions from the customer’s FTB:

• Contact the customer to negotiate a payment arrangement for the debt. See Debt Repayment
• If a payment arrangement is successfully negotiated; ongoing deductions from the customer’s FTB will not be required. See Debt Repayment for help when negotiating and processing a payment arrangement
• If it is appropriate to commence ongoing deductions from the customer’s FTB, the Service Officer must discuss this with the payer. The purpose of the discussion is to arrive at a suitable amount to be deducted from each FTB payment (the negotiated deduction amount)
• Tell the customer:
• Child Support will only be able to make deductions from FTB payable for the children for whom the debt is owing
• the actual amount has yet to be calculated
• it will not exceed the amount negotiated and cannot exceed an amount that Centrelink has to calculate

If appropriate to deduct from FTB, go to Step 5.

Only request ongoing deductions to recover the portion of debt that relates to the child/ren for whom the FTB is being paid.

Before proceeding, establish that a debt exists for the child/ren for whom the customer receives FTB.

There are 2 parts to this:

• calculate the debt amount for each of the eligible children. See Apportioning Debt amount per child for section 72AB purposes
• where a debt exists for child/ren who are in the customer’s care, issue an FTB section 120 notice to confirm which child the FTB is payable for. Go to Step 6

Issue a section 120 notice to CSU to establish whether FTB is payable to the customer for any child for whom the customer has a debt:

• Open the Centrelink /Child Support information exchange macro
• Select s120 FTB
• Complete the details in the macro
• Select Create email for information request
• Send the macro generated email
• Select Create document for Cuba

Paste the document into the Collection Window with the details:

• Category: Level 1
• Action: Information gathering
• Method: Phone
• Outcome: Other
• Select Go

In the Capacity to Pay – Information gathering: Phone call to other dialogue box, record:

• Call Details group box
• New Information Found: No
• Third Party Details group box
• Name: CENTRELINK
• Type: Other
• Other Type:
• Contact details group box:
• Name: Centrelink
• Phone Number: 136150
• Additional Information group box
• Paste the macro generated document
• Select Ok > Save

Paste the document in the Communication window with the details:

• Type: Electronic Out
• Case: Case number if applicable
• Reason: Request for Info
• With: Centrelink
• Category: Collection
• Issue: Other

Monitor for the CSU Response Intray in the Customer Record window and the scanned response in the View Correspondence window.

The CSU response will advise the names of any children for whom the customer has a debt that are also children for whom the customer receives FTB. The response will also provide details of the maximum permissible amount (MPA) that Child Support may deduct from the customer’s FTB entitlement.

Decision point - Decide how much to request as an ongoing deduction from FTB, using Centrelink’s response to the FTB section 120 notice. The amount should be either the negotiated deduction amount decided at Step 4 (fixed) or the maximum permissible amount advised by Centrelink (variable).

Note: FTB is not paid per child, it is calculated on the basis of the number of children for a given income and level of care. Where a child falls into an age bracket (0-15,16-19 for example) the FTB amount changes accordingly. If a child is not attending school, the parent will not receive FTB for that child.

Record the amount of FTB to deduct on Cuba at Steps 8 and 9. Document the calculations and the reasons for the decision in Step 9.

Electronically advise Centrelink to start deductions via the Centrelink Deductions window. Navigate to this window from the Customer window:

• Select Collection - Collection
• Select New
• Category: Level 1
• Action: Payment Arrangement
• Outcome: FTB
• Select Go - flow to Centrelink Deductions window. The Deduction Code menu selection will auto-populate with ‘FTB Deductions’

Complete the following details:

• Notified Debt: the sum of the apportioned debts for each of the children for whom the customer receives FTB. Work this out using the information obtained at Step 6 and 7 above
• Maximum Permissible Amount: as advised by Centrelink in its response to the FTB section 120 notice recorded at Step 6 above
• Recovery type: Variable if deducting the Maximum Permissible Amount or Fixed if deducting a fixed amount negotiated with the customer
  Note: where the Recovery Type is Variable the amount will be automatically set at half the Maximum Permissible amount and the field will be disabled
• CSP fortnightly request amount: (For a recovery type of Fixed only) The amount that has been negotiated with the customer, quoted at a fortnightly rate
• Select SAVE to display a message advising that a section 72AB notice is required
• Select OK, the Issue Centrelink Notice window will automatically open

The section 72AB notice can only be issued from the Issue Centrelink Notice window after navigation from the Centrelink Deductions window.

Complete the following details:

• Deduction type: ongoing
• Third Party Details: CSID 995606076 (CSU for FTB)
• Notified Debt Amount: as calculated in Step 5
• Agreed Deduction Amount: the Maximum Permissible Amount (variable) or the amount negotiated with the customer (fixed) quoted at a fortnightly rate (i.e., twice the weekly rate recorded at Step 8 above)
• Child Details:
• Enter each child’s full name and date of birth
• Select the Add Child to List pushbutton
• The details will populate into the Children group box for transfer as text into the notice when issued
• If an entry is made in error, highlight the child’s details in the Children group box and select the Remove Child From List pushbutton to ensure that these details are not included in the notice when issued
• Notice Status: select 'Pended' or 'Accepted' from the dropdown list. If the notice requires authorisation by a delegated officer, select a status of 'Pended'
• A notepad is mandatory before SAVE is enabled. See Documentation Cuba process help and Documenting Child Support information. Record the calculations and the reasons for the decision from Step 7 above

If the notice has been saved with a status of ‘Pended’, all fields (excluding Notice Status) are disabled (view only). Immediately route the generated 72AB FTB Notice Pended intray to the approving (delegated) officer. The intray has a same day due date and will delete once the Notice Status is changed to Accepted or the notice is deleted by the approving officer.

A CE13-1 Family Tax Benefits (FTB) section 72AB notice will issue on selection of Accepted and SAVE. Save the notice as a PDF file (by selecting 'PDF Creator' from the printer list) and email to Child Support Unit (CSU) immediately.

Note: if an attempt is made to issue a section 72AB notice without first completing and navigating from the Centrelink Deductions window, a message will appear advising that the FTB deduction request must be completed first. Save the electronic deduction request in the Centrelink Deductions window to auto-navigate to the Issue Centrelink Notice window.

If the Centrelink deduction request is completed but the issue of the section 72AB notice is not able to be finalise at the same time, navigate back to the Issue Centrelink Notice window via the Centrelink Deductions window.

Issue the notice by navigating from the:

• Collection window - Level One, Payment Arrangement, FTB - See Centrelink Deductions window, or
• Customer window > Payment Options window - See Centrelink Deductions window

From the Centrelink Deductions window, select Go - Issue Centrelink Notice. Complete the section 72AB notice.

A CE14-1 to Customer Family Tax Benefits (FTB) - Ongoing Deduction letter generates to the customer when the section 72AB notice is issued. The letter advises the customer of the amount to be deducted and the expected commencement date and their right to object to the decision to deduct from FTB.

If the ‘Notified Debt’ has been fully recovered by the ongoing deductions, the system will automatically end the electronic FTB deduction request to Centrelink.

If the ‘Notified Debt’ has been recovered in whole or part by payments other than the deductions from the ongoing FTB entitlement, it will be necessary to withdraw the section 72AB notice and end deductions in the Centrelink Deductions window.

If the debt continues to accrue, new notices will need to be issued.