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Information for payers about child support overpayments 277-04260010

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Letters

UQ14.00 - Overpayment removal cooling off - Payer

UQ14.03 – Removal of overpayment - Residency - payee (payer no longer a resident)

UQ14.04 – Removal of overpayment - Residency - payer no longer a resident

Macro

Overpayments – talking to payers

Automated Message – Election to have the liability no longer enforced

Using Services Australia Workspace, select CSP_DischargeArrears English

When selected from the Services Australia workspace, customers will be played the automated message:

'You’ve asked us not to enforce the recovery of a debt owed to you. This means you understand:

  • we will vary the child support account to remove this unpaid amount
  • this amount cannot be reclaimed or used to offset any monies you may owe, now or in the future
  • we will confirm your election in writing, and you will have a limited time to withdraw the instruction not to recover the amount if you change your mind
  • after this time, you will no longer be able to ask Services Australia to recover this amount'

Examples

Item

Example

1

Apportioning payments received

Payee A owes a:

  • $700 overpayment to Payer B, and
  • $300 overpayment to Payer C

Payee A makes a payment of $100 towards the debts owed.

The total debt is $1000:

  • 70% is owed to Payer B, and
  • 30% is owed to Payer C

The $100 payment will be apportioned according to the percentage of debt owed:

  • Payer B will receive $70 (70%), and
  • Payer C will receive $30 (30%)

For more examples of apportionment of child support payments see Disbursements of child support.

2

Redirection of repaid overpayment funds to other debts

  • Customer A owes a child support debt of $50 to Customer B, and
  • Customer B owes an overpayment of $100 to Customer A in a reverse child support case

B makes a $100 payment for the overpayment owed to A. Fifty dollars of this payment can be redirected to the amount A owes to B.

A should be refunded the remaining $50.

3

Customer notification

  • Customer A owes Customer B $200.00 in overpayments on Case 1
  • Customer B owes Customer C $80.00 in overdue child support on Case 2
  • Customer B also owes Customer D $60.00 in overdue child support on Case 3

When customer A makes a payment of $100.00 to Customer B for their overpayment on Case 1, the full amount will be redirected:

  • $57.14 will be redirected to Customer C for the overdue maintenance on Case 2
  • $42.86 will be redirected to Customer D for the overdue maintenance on Case 3

Due to the redirection of the $100.00 from Case 1, Customer B will be issued a CE18-1 Section 71AB Redirection of Payment to Overdue Child Support Debt letter.

4

Managing funds remaining after redirection

Payer A has overpaid Payee B $700 in child support. Payer A is a payer in another case and has a child support debt of $300 which he owes Payee C.

Payee B pays the $700 overpayment. As Payer A owes Payee C $300 in child support, $300 of the $700 overpayment that Payer A is owed is redirected to Payer A’s other child support debt.

Payer A will receive a $400 refund for overpaid child support and child support debt to Payee C will reduce by $300.