Notify Child Support customers of income changes 277-07010080

When an income is updated, the system automatically generates letters advising of an income change:

• MIR1-1: to a payee advising that a new income is being used
• MIR1-2: to a payer advising that a new income is being used
• MAC1-3 (No change to Annual Rate): to both customers if a new income has been added and used, but there has not been a change to the annual rate
• RPO-01 (Receiving Parent Overpayment): to a payee if the variation results in either the creation of an overpayment, or an increase in a payee’s existing case overpayment balance. The RPO-01 will not generate if the case payment is subsequently removed on the same day it was created. See Child support overpayments and other payee debt
• NOA-01 - Letter to both parties. Sometimes the system:
• suppresses the Cuba letters, and
• issues a NOA-01 CS Notice of Assessment and covering page consolidating the decision letters. Consider when NOA-01 letters issue

Letters will incorporate appropriate paragraphs alerting customers to any variation which results in:

• increased arrears
• overpayments, or
• changes to employer withholding deductions

Check all Cuba generated letters to ensure they are correct.

MIR1-1 and MIR1-2 letters

Some of these letters are generating with an incorrect effective start and end date, ‘1 January 2000 to 31 December 4000’. This results in new assessment notices issuing for multiple periods not impacted by the new income.

The new income is correctly reflected and applied to the relevant periods in Cuba using correct start and end dates.

If this issue is identified prior to letters issuing, delete the incorrect letter/s and create a manual letter (MX0-2 Unique Letter with Assessment) to advise the new income being used and the appropriate changes to the assessment period/s.

It may be appropriate to contact customers by phone to discuss the consequences of an income change including

• overpayments (including overpayment waiver and refunding)
• negotiation of payment of overdue child support
• making an estimate election
• opt out arrears period
• applications for a Change of Assessment
• application for the Fixed annual rate not to apply
• application to reduce a minimum assessment to nil (RMA)

Document all discussions and any follow up actions for finalisation in the Client Income window.

Note: when documenting reasons for a decision, the legislative reference used to make the decision must be included