Registrar Initiated Private Collect (RIPC) (CS) 277-04320000

A Private Collect candidate indicator will be present if the following minimum requirements are met. Check these indicators manually for:

• an active case
• the liability has been enforceable for over 6 months
• no arrears
• the case is likely to run for at least 12 months in to the future
• a satisfactory payment record (see the Child Support Guide 5.6.2: Registrar-initiated ending of collection)
• no indicators of family and domestic violence on the case
• an accurate adjusted taxable income information is being used in assessments (including components such as ATO Issued Taxable Income details and some tax free pensions. For more information on incomes, see Income processing for Child Support customers). This is not applicable where the rate is set by an agreement, court order or COA
• the payer not on tracing

If any of the requirements are not met no further action is required. Document the findings, see Documenting Child Support information in Cuba. Otherwise, go to Step 2.

Zero annual rate: cases that have had a zero annual rate since they started should not be made private collect. Neither party has the role of payee, so there can be no election to opt out of collection. For more information about cases with an initial zero annual rate see Application for assessment - record a decision and finalise.

The References pages contains a link to collection policy information about zero annual rates.

Review the case to determine the likelihood of a sustainable private collect arrangement. Service Officers must be satisfied that the payer will continue to have a satisfactory payment record if Child Support stops collecting child support for the payee.

Assess suitability for RIPC

Consider the following indicators to determine suitability for RIPC:

• parents circumstances
• Capacity to Pay (CTP), and
• history of under-estimating

Go to Step 3.

Service Officers should consider if:

• the parents have regular/primary or shared care
• there are multiple non agency payments
• there is evidence that parents may be able to agree and get along
• the parents live in the same area
• the parents have a child support agreement
• no evidence of any ongoing or recent disputes between the parents, such as care, NAPs or family court matters
• no indications of family and domestic violence, for example, an AVO/DVO, police report, doctor’s letter, report from a social worker

If unsure family and domestic violence is a risk, contact the relevant customer to discuss and explain that RIPC is being considered. If the customer advises they feel at risk, discuss options such as referral to Centrelink for advice on exemptions from collecting child support, if appropriate. For more information, see the Family and domestic violence procedure.

If unsuitable at this stage, go to Step 7, otherwise go to Step 4.

Determine if the case is being investigated for possible CTP action, or if the case has already been through the CTP process. If currently being investigated for CTP, consideration of RIPC should be deferred until CTP action has been finalised. For further information, see Capacity to Pay (CTP) Child Support.

If unsuitable at this stage, go to Step 7, otherwise go to Step 5.

A history of under-estimating may indicate that timely payments would not occur. The estimate history of the case may also be an indicator of risk with future estimates. If there is a risk that future under estimation will increase the arrears on the case, it may not be appropriate to put the responsibility for collecting the arrears on the payee. If an estimate/s needs to be manually reconciled, see Child support estimates - Reconcile (from 1 July 2011).

If unsuitable at this stage, go to Step 7, otherwise go to Step 6.

Defer consideration of RIPC where:

• a COA application has been lodged or the customer has indicated one will be lodged shortly
• a customer requests time to work through personal issue
• the payee has an unpaid overpayment
• there are uncredited Non Agency Payments on the case
• a customer is experiencing serious illness

If the case is unsuitable for private collection, Service Officers should document their findings. No further action is required.

If RIPC should be deferred, Service Officers should document their findings. That decision may be reviewed at a later date.

Contact the payee to discuss RIPC. If contact attempts are unsuccessful, go to Step 4.

Discuss the following:

• confirm that the case details and assessments are correct
• explain the RIPC process and why the case may be suitable
• emphasise the benefits of private collection, see Step 2 for information
• establish if genuine reasons exist for the case not to be made private collect including potential harassment and other relationship issues
• clarify the responsibilities and expectations involved in private collection arrangements
• discuss possible methods for making private payments

The benefits of private collection include:

• greater customer choice and independence
• increased likelihood of timely payments
• increased control over the timing of payments, for example, fortnightly/weekly etc
• greater flexibility in how payments are made, for example, third party payments
• reduced involvement by the department but customers will continue to receive periodic assessments
• the safety net of returning to our collection if there are problems, including the option of requesting arrears

See also:

Script - Customer concerns and possible solutions.

If discussions with the payee indicate the case is:

• suitable for private collection, go to Step 3
• unsuitable for private collection, document the findings. No further action required, see Documenting Child Support information in Cuba.

If a customer changes the way they manage collection of their child support, this may have an impact how their FTB Part A payments are worked out. The customer will be deemed to have received the full amount of child support they are entitled to, regardless of whether they actually do or not.

If the customer has any questions about their FTB Part A payments under a private collect arrangement, they should be advised to contact Centrelink to discuss. Offer to cold transfer the customer at the end of the call.

If discussion with the payee confirms that RIPC is suitable, see Step 1 in the Provide or gather information table.

If unable to contact the payee, go to Step 4.

If discussion with the payee confirms that the case is unsuitable for RIPC, go to Step 5.

If the payee cannot be contacted by telephone or a current phone number is unable to be located, search for additional contact details (see the External searches guide (CS)). Once additional contact details are located, attempt payee contact again. If contact is successful, go to Step 1.

If unable to find a contact number or speak to the payee, create a unique letter using the Registrar Initiated Private Collect - Payee letter text, see Letters Cuba Process Help. Create a General Follow Up intray to monitor for response, see Intray management Cuba Process Help.

If the payee does not respond to the letter, the case is unsuitable for RIPC.

If discussions with the payee indicate the case is unsuitable, advise them that the RIPC will not proceed. Document the decision/reasons. If unable to contact the payee, document the attempts. No further action is required.

While speaking to the payee, if the decision is to continue with the RIPC, continue the discussion covering the following points:

• Payment methods
• Release of information
• Bank account details, and
• Private collection start date

Go to Step 2.

In decreasing order of convenience the main methods of payment are:

• from the payer’s salary, direct to the payee’s bank account
• automatic transfer from the payer’s bank account direct to the payee’s bank account
• manual payments into the payee’s bank account
• cheque or money orders sent to the payee’s address
• payments to third parties, on the payee’s behalf
• cash payments in person

Automatic transfers help to ensure regularity of payment whereas cash payment arrangement should be discouraged because they are difficult to prove in the event of a dispute.

Discuss the payee’s preferences for payment so they can consider these when later talking with the payer.

See also:

Payment methods

Confirm if the payee agrees to Child Support releasing information to enable the payer to pay them privately, such as bank account details. If the payee does not agree to the release of the details, explore if there are other viable payment options. Document the payee's response in the Collection summary window, see Documenting Child Support information in Cuba.

Ensure that the payee understands exactly what information Child Support will be releasing and that the payer may provide this to their employer or bank to organise payment.

If the payee specifically agrees to the release of their information, go to Step 4.

If there are other viable payment options, that do not require the release of this information, go to Step 5.

If the payee does not agree to the release of the information and there are no other viable payment options, the case is not suitable for RIPC. Document the decision/reasons. No further action is required.

If the payee agrees to the release of the information and wishes to receive payments into a bank account, obtain the following information:

• name of bank/financial institution
• BSB/branch number
• branch name
• account name
• account number

Consider Opting out of collection, see Collecting child support payments privately and/or discharging arrears.

Discuss the payee’s preference for a start date based on their circumstances. This can be no earlier than 28 days after the decision to change the case to private collect is made. The decision date for this purpose is the date letters generate to both customers. It may be easier to align the payment frequency with the payer’s pay cycle.

Consideration should also be given to the timeframes involved in ceasing current payment arrangements such as employer withholding or bank deductions. Manage the expectations of both customers regarding this change of payment method as there may be some lag time between the beginning of private payments and the ending of, for example, salary deductions.

Advise the payee that:

• the payer will be contacted to discuss making their case private collect
• they will be contacted again to confirm details of when private payments will start

See Step 1 in the Payer contact table.

Contact the payer to discuss their circumstances to determine if private collection will be sustainable. During the call:

• confirm that the case details and assessment are correct
• explain the RIPC process and the factors which indicate that the case may be suitable
• emphasise the benefits of private collection
• less involvement by Child Support however Child Support will continue to provide periodic assessments
• more flexibility over the timing of payments, for example, fortnightly/weekly
• more flexibility in how payments are made, for example, third party payments
• the option of the payee returning to Child Support collection if there are problems

See also:

Customer concerns and possible responses

Consider sending the payer The Parent’s Guide to Child Support booklet for further information on private arrangements. See Products and Services Cuba Process Help.

If the payer has been unable to be contacted, go to Step 5. Otherwise, go to Step 2.

During discussion with the payer:

• determine if there are genuine reasons why the case is not suitable for private collection
• discuss the responsibilities and expectations involved in private collection arrangements
• discuss methods for making private payments

If private collection is considered sustainable, go to Step 3. Otherwise, see Step 1 in the Finalisation table.

Discuss the payment options and dates preferred by the payee and determine their suitability for both customers.

It may be necessary to contact one or both customers again to confirm arrangements before proceeding to the next step, for example, if the payee preferences do not suit the payer and new arrangements need to be discussed.

Available options for payments

(Omit options not suitable if payee does not agree to release their details)

• Deductions from the payer’s salary, direct to the payee’s bank account
• An automatic transfer from the payer’s bank account, direct to the payee’s bank account
• Manual payments to the payee’s bank account
• Cheque or money orders sent to the payee’s address
• Payer payments to third parties on the payee’s behalf
• Cash payments in person

Advise the payer to keep records of all child support payments made to the payee, and to obtain receipts for direct cash or third party payments. This will provide evidence for both parties of the payment being made in the event of a future dispute. For this reason cash payments will generally be a risky method for both parents.

For more information on payment methods, see FAQ - payment methods.

If the payer pays through salary deductions, or directly from their bank account, details of the source of payments will be listed on the payee’s bank statements. Advise the payer that this will occur and clearly document this. Bank transfers may also attract fees where salary deductions will not.

If a suitable payment method is unable to be determined, see Step 1 in the Finalisation table.

If a suitable payment method has been negotiated, go to Step 4.

The payee’s preferred date will have already been identified before contacting the payer. Determine if it is suitable for both customers. Consider the following:

• The date of change to private collection must be at least 28 days after the decision to change to private collection is made
• Generally allow 30-60 days but it may be longer depending on pay cycles of the payer. Try to determine a date suitable to both customers and their circumstances
• The last payment due to Child Support, including the amount, the period covered and the due date for payment
• If the payer is to pay directly from their salary, for ease of payments start private collection on the day after a payday
• The first private payment is usually made after the date private collection commences as a payment won’t be due until the first payment period has passed, for example, if a case becomes private collection on March 1, weekly payments are due on 7 March, fortnightly on the 14 March and monthly on 7 April
• The payee’s preferred start date will influence whether the payments will be made in advance or arrears. Ensure that the payer understands if they are paying in advance or arrears

Staff cannot process the RIPC whilst a payer has employer deductions in place. Time the de-link and commencement of private payments to avoid any shortfall. For more information on the delinking process, see Employer Withholding (linking) for Child Support customers.

See Step 1 in the Finalisation table.

If the payer is unable to be contacted by telephone, or a current phone number is unable to be located, search for additional contact details (see the External searches guide (CS)). Once additional contact details are located, attempt payer contact again. Go to Step 1.

If unable to find a contact number or speak to the payer, create a unique letter using the Registrar Initiated Private Collect - Payer letter text, see Letters Cuba Process Help. Also, create a General Follow Up intray to monitor for response.

If the payer does not respond to the letter, the case is unsuitable for RIPC continue to Step 1 in the Finalisation table.

If the payer responds to the letter, go to Step 1.

Contact both customers to advise of the RIPC decision and to ensure the customers have a shared understanding and expectations of what will now occur.

RIPC unsuitable

If RIPC is unsuitable, advise both customers that the RIPC will not be proceeding. Document all relevant information and customer discussions, see Documenting Child Support information in Cuba.

No further action is required.

RIPC suitable

Use this contact as an opportunity to ensure that both customers understand the changes to their payment method.

Discuss with both parents:

• the amount and date of their last payment(s) to/from the department and the period it will cover
• the date and amount of the first private payment to be paid by the payer and the period it will cover
• future payment intervals (such as weekly, fortnightly, each four weeks, or each calendar month) and the period they will cover
• the importance of keeping records of payment
• that payments to a bank/financial institution generally take a few days to process
• that Child Support will continue to issue periodic child support assessments
• if payments are not made on time, the payee can apply for Child Support to collect child support again, including three months, or in special circumstances, up to nine months unpaid arrears
• the importance of advising Child Support of any change in circumstances, for example, income, care
• possible effect on Family Tax Benefit Part A. Offer to cold transfer the customer to Centrelink for more information

Information for payer only

Child Support will no longer issue monthly statements. If payments are not made on time the payee can request Child Support contact them to investigate the circumstances. Child Support will contact to discuss this. The case will not automatically become collect until after Child Support has talked with both customers and given consideration to all circumstances.

Advise both customers that a letter confirming the new arrangements will be issued. This will include a schedule showing payments during the change to private collection and private payment details.

Process the RIPC in Cuba, see the Opt out election Cuba Process Help.

If the payee has not consented to the release of information, select either the bank or mail option as this is required to save the change. After saving the record, delete the PCD-1 letter as this will be incorrect, see Letters Cuba Process Help.

Document all customer contacts including:

• the case is a Registrar Initiated Private Collect case
• the payee’s consent to the release of information
• the payer’s agreement to enter private arrangements
• when direct payments will commence
• the method of payment
• how regularly the payer will be paying the payee, and
• if the payer will be paying in arrears or advance

After the RIPC has been processed, the following letters will issue automatically:

• MOO4-1 - Opt out CSA initiated (RIPC) – payer
• MOO4-2 - Opt out CSA initiated (RIPC) – payee
• PCD-1 - Advises customers where payments should be made

If the payee did not consent to the release of their information, delete the PCD - 1 letter.