Registrar Initiated Private Collect (RIPC) 277-04320000

Item

Description

1

Will the payee get the money on time?

Private collection arrangements often lead to faster payments as the money does not need to go through Child Support first.

2

The payer is not reliable enough!

Begin by pointing out the period of time for which the payer has already been paying on time. This will be at least six months.

Suggest that Child Support could negotiate for the payer to set up automatic deductions from their wage or bank account direct to the payee’s bank account. This should support regular and consistent payments.

3

What if the payer stops paying? If I could miss out on child support I won't get an FTB Part A top-up payment.

If the payer stops paying and the payee cannot resolve this directly with the payer, then they should contact Child Support and they will contact the payer to identify the problem. If the payer does not resume voluntary payments to the payee, the payee can reapply for collection. Child Support can collect 3 months arrears and up to 9 months arrears in special circumstances (see Application for Child Support to be collected). If the case is made collect, and you haven’t been paid all the child support you were entitled to during the arrears period, then Centrelink will be able to take this into account.

4

What if the amount payable changes?

If the assessment changes the customers will be notified in writing and the payer needs to adjust the amount they are paying. If there are problems adapting to the new amount payable either customer may contact Child Support for assistance and advice.

5

What if our circumstances change?

Contact Child Support and they will advise the most appropriate option/s.

Example: estimates, COA, change in care level.

6

I don’t want the other parent having my bank details!

Suggest that the payee set up a new bank account which is used solely for receiving child support payments. Otherwise, payments can be made in person, by mail, or to third parties on the payee’s behalf.

7

I would prefer the department maintain the account keeping.

If the payer chooses to pay through salary deductions or bank transfer, this will create an automatic record of payments; keep a written record of payment dates and amounts.

Item

Description

1

How does a payer set up salary deductions?

If the payer wishes to have payments made from their salary, direct to the payee’s bank account they will need:

• the amount payable per pay period, and
• the payee’s bank details

The payer should then approach their payroll officer to see whether they can facilitate this, and how much notice they require to set up the deductions. Some employers offer a service where part of the employee’s salary is paid to a separate account. If the employer does not offer this service, the payer will need to consider alternative payment methods such as bank transfers.

2

Why can’t the department require the payer’s employer to make payments direct to the payee’s?

Once a case becomes private collect, Child Support no longer has the legislative powers to enforce payment.

3

What are bank transfers?

Most banks offer a service where customers can arrange automatic payments to a third party account on a periodic basis for example, weekly or fortnightly. Many banks offer a free service if the customer sets it up using internet banking. The customer can do this by phone banking or in person, though this may incur a fee.

To set up the transfer, the customer will need the following information:

• BSB
• Account Number
• Account Name

These details will be provided with the Opt Out letter if the payee has consented to its release. If the customers are considering this option, advise the payer to contact their bank to find out whether they offer this service, and whether there are any fees attached.