Non-agency payment (NAP) 277-04230000

When overpayments or child support are collectible, payments can be made either:

• directly to the person owed the debt, or
• to a third party to satisfy the debts

These are called a NAP. Child Support will credit a NAP in certain circumstances.

NAPs are categorised as either prescribed or non-prescribed.

Prescribed NAPs are only available for child support debt, not overpayments.

They only apply to a limited range of payments paid to a third party. For example:

• school costs
• child care
• essential medical, or
• specific payee expenses

Prescribed NAPs can be:

• credited against up to 30% of a child support liability
• only accepted if, at the time the payment was made, the payer had less than regular care (less than 14% care) of all of the children to whom the relevant administrative assessment relates

Child support legislation does not require both parties to agree that these types of payments were made in lieu of child support.

Non-prescribed payments refer to all other types of NAPs. The legislation requires both parents to agree that these payments were made to satisfy overpayment or debt.

Non-prescribed NAPs include:

• direct payments to the person owed the debt
• payments made to a third party
• non-cash payments or payments 'in-kind'

Note: some third party payments can fall under either NAP category. Customers must choose which NAP category should be considered in the decision.

If the person:

• owing the debt reported the NAP, both parties must be contacted at various points of the decision making process
• who is owed the debt reports the payment, the other party does not need to be contacted