TM 2003.04 (bulk letter mailout 2003) (CS) 277-07120000

Subject: Letters for clients involved in mass marketed schemes and whose assessment is amended under new Child Support (Assessment) Section 10.

I am writing in relation to Child Support treatment of ATO Scheme cases. As previously advised, an amendment to the Child Support (Assessment) Regulations was gazetted on 19 December 2002 with retrospective effect from 14 February 2002, the date the Commissioner of Taxation made an offer of settlement to taxpayers involved in mass marketed schemes.

Section 10 enables Child Support to amend any child support assessment based on a client’s amended taxable income where that amendment has occurred because the client accepted the Commissioner’s offer of settlement. In these cases the taxable income amount will reduce. It is estimate there will be about 600 cases affected by this amendment and most of those are managed in the Perth branch of Child Support with the next largest group in Queensland.

Once Service Officers amend a child support assessment for this reason, Child Support will notify clients of the variation to the assessment. Service Officers should contact both clients by telephone and:

• explain the adjustments
• why they are being made
• what the consequences are for the customer, for example, arrears no longer owed, overpayment will occur, and
• make appropriate arrangements for payment of outstanding amounts

This personal contact will be followed up by written advice; however, the standard letters produced by CUBA are not to be used. Service Officers must prepare unique letters for both parties informing them that the child support payable has been re- assessed. The letters should be accompanied by the appropriate Register Entry extracts relevant to the amended assessments. If the extracts are posted under separate cover the client should be informed that they will arrive in this way, and when to expect them.

The Process page contains the standard heading and paragraphs to be used in all letters sent to clients in these circumstances. The heading and paragraphs should be adjusted so they are relevant to the particulars of the case:

• A standard heading and standard first paragraph to be used in all letters, and
• standard second paragraphs to be used where the recipient is the person whose taxable income was amended, and
• standard second paragraphs to be used where the recipient is not the person whose taxable income was amended

Other information is to be included according to the circumstances of each case. For example: if the payee has now been paid too much child support; if the payer continues to have a debt that is due and payable; or what will happen to any payment arrangement previously in place if the account balance has been met.

If you or your staff have any enquiries please email the CS Policy Advice Requests mailbox.

Sheila Bird

Assistant General Manager