Child Support late payment penalties and estimate penalties 277-04290000

This document outlines the processes for remitting estimate and late payment penalties (LPP) and cancelling LPP.

Child Support penalties

The purpose of these penalties is to encourage customers to comply with their child support obligations. Penalties can be used as an effective negotiation tool. Child Support has the discretion to remit penalties under certain circumstances.

Child Support should also consider cancelling LPP when there has been a reduction to a customer’s maintenance debt.

Penalties are amounts owed to the Commonwealth and are not paid to the other party.

There are 2 penalties covered in this document:

LPPs - amounts raised on a customer's account if customers do not pay their child support on time
Estimate penalties - amounts raised on a customer's account if customers significantly underestimate their income

Applying a late payment penalty

The Registrar imposes a late payment penalty on a parent whenever the customers fail to pay their child support debt by the due date. See Child Support Guide - 5.1.5 and Child Support (Registration and Collection) Act 1988, section 67. The purpose of a late payment penalty is to encourage parents to comply voluntarily with their obligation to pay child support and discourage late payment.

A late payment penalty is a debt due and payable to the Commonwealth (CSRC Act section 67(2)). Any late payment penalties collected are paid into consolidated revenue. The penalties are not paid to the receiving parent.

The Registrar calculates late payment penalties on the unpaid balance of a parent's child support debt after the due date for each payment period. The rate of the penalty is the general interest charge (GIC) rate under Taxation Administration Act 1953 subsection 8AAD(1) (CSRC Act section 67(3)).

Roles and responsibilities

Service Officer

Responsible for:

determining whether to remit or cancel penalties and the amount of penalties to be remitted or cancelled
escalating penalty submissions to officers with that authorisation level (depending on the amount that is recommended to be remitted/cancelled), and
processing the decision including updating Cuba and advising customers as appropriate

The authorisation for remitting penalties also applies to cancelling penalties.

SO3 - $ 2,000
SO4 - $ 4,000
SO5 - $ 10,000
SO6 - $ 30,000
Executive level 1 - No limit

Operational Information

Child Support late payment penalties and estimate penalties 277-04290000

Child Support penalties

Applying a late payment penalty

Roles and responsibilities

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