Correcting errors on Child Support cases 277-09030000

A customer may identify a potential error with their child support record or assessment from:

• letters
• online account
• conversations with the agency, or
• interactions with Centrelink, where there has been impacts on Family assistance payments

When a customer notifies the agency of an error, consideration of whether or not the error could be corrected should be explored as the customer has already alerted the agency of the matter.

After reviewing the case, see Items 2 - 8 to determine if there is an error.

Simple errors are obvious errors which are straightforward and indisputable. Examples of simple errors are based on common scenarios:

• An eligible child's date of birth (DOB) is incorrect. The correct DOB is confirmed with both customers. Correcting the error will have no financial impact
  Note: in international cases it is sometimes necessary to record an inaccurate child DOB, see New Zealand 'In' case management - Registrations between Inland Revenue, New Zealand and Child Support. These children's DOB must not be corrected. If unsure, see Technical Support in Child Support
• A child's care change was recorded incorrectly 2 months ago. Both customers have confirmed the care arrangements. Correcting the error will have a financial impact for a period of less than 6 months
• A relevant dependant was added to a case, but one step was missed and the care arrangements were not recorded. The care arrangements have been confirmed with the parent. Correcting the error will have a financial impact for a period of less than 6 months
• A recent care change should have caused a role reversal, however the reverse case was not created. Correcting the error will cause a reverse case to be created from the role change date which was less than 3 months ago
• A role change recently occurred. When the reverse case was generated, the child support periods (CS Period) were not aligned. Only the CS Periods relating to the last relevant year of income (LRYI) need to be aligned

Examples of complex errors:

• An incorrect inflation factor was keyed for a child support agreement. This caused incorrect adjustments for the past 3 years
• A case was ended in error by an error in keying a suspension of liability due to reconciliation. The parties re-separate after 5 months, but because of the error, the case does not resume
• An error in recording a child's DOB caused their case to end 6 months early. Because the payer had a debt, and continued to pay the same rate, neither customer was aware the case ended. The correct DOB is later confirmed with both customers and corrected to reinstate the case
  Note: in international cases it is sometimes necessary to record an inaccurate child DOB, see New Zealand 'In' case management - Registrations between Inland Revenue, New Zealand and Child Support. These children's DOB must not be corrected. If unsure, see Technical support in Child Support
• A child of the relationship was not added to a reverse case. Both the original and reverse case have now ended
• A new provisional income was not automatically applied 2 months ago when it was determined. As a mixed assessment was in place it needs to be recalculated and reapplied

If unsure about the complexity of an error seek technical support, see Technical support in Child Support.

Correction of duplicate records may fall into either of the simple or complex error categories depending on the circumstances of the case.

Duplicate customer records are created as a result of:

• staff error
• customer error, e.g., customer provides incorrect DOB
• insufficient Cuba searches being undertaken before a new record is created
• insufficient information being gathered at registration for either customers and/or children of the case
• International case requirements
• the surname 'unknown' being used

It is essential to maintain a unique customer record for the following reasons:

• a customer with 2 separate payer customer records will be over-assessed for child support as the multi case allowance will not be reflected in the other case
• payments made by a parent with multiple payer roles will only be disbursed to one payee as apportionment cannot apply (unless payments are being made on multiple CSRN)
• customers may not match correctly with Centrelink records causing problems with:
• care decisions
• child support assessments
• collection from Centrelink payments
• transfer of customer details between Centrelink and Child Support systems
• Family Tax Benefit payments
• reasonable maintenance action

Customer Identification Number (CIN)

To enable data exchange between the Child Support system Cuba and Centrelink system, customer records are assigned a CIN. The CIN is not visible within Cuba for most users.

The CIN matching is largely responsible for transfer of customer information through data exchange.

Prior to June 2011 release, CIN matches were often overwritten with new CIN match or the Cuba customer records may not have been successfully matched to the Centrelink system.

To determine which Cuba record is CIN matched to the Centrelink system, lodge an online Technical Support request requesting the CIN match. See Technical support Cuba Process Help.

Incorrect residency decisions fall into both the simple and complex error categories.

The residency decision must be considered an invalid decision (complex error) if the decision will be effective from the start date of liability and the application for assessment was:

• incorrectly accepted because a residency decision was not made, or
• incorrectly refused because of an erroneous residency decision

If the corrected decision will be effective from a date after the start date of liability, the corrected residency decision can fall into either the simple or complex error categories.

Determine if the error is simple or complex by reviewing Correcting a simple Child Support error.

Note: there may be other circumstances, other than those listed above, when a residency decision should be made invalid. For example, if a residency decision was incorrect due to a denial of procedural fairness this may be considered an invalid decision, go to Item 7.

It is not necessary to make a correcting errors decision when new residency information is received and:

• the resulting residency decision will be applied retrospectively to a date after the start date of liability, and
• the date of effect of the new decision is after the date of effect of the previous decision

For more information see Residency decision for Child Support customers.

Correct inaccurate DOB in all circumstances to minimise any future impact for the customer and the cases involved. An exception to this is where an inaccurate DOB is necessary to maintain an international case.

Note: in international cases it is sometimes necessary to record an inaccurate child DOB, see New Zealand 'In' case management - Registrations between Inland Revenue, New Zealand and Child Support. These children's DOB must not be corrected. If unsure, see Technical Support in Child Support.

It may be reasonable to correct the DOB error without customer contact and undertake a manual formula modification to address any overpay/debt raised. Consider the assessment impact of correcting a DOB on a case by case basis. For example, if the case has ended. See Agreements Cuba Process Help.

Submit a Correcting errors submission which will require SSO approval, follow the correcting errors process in Correcting a simple Child Support error.

A decision is invalid if it was:

• beyond the decision maker's power (ultra vires). A decision made by an officer who did not have the necessary authorisation or delegation, or who otherwise did not have the power to make the decision that they did. For example, a decision that was not possible under the legislation
• the product of a denial of procedural fairness. For example, a decision to refuse an application without giving the applicant a reasonable opportunity to provide the necessary evidence. This could include where the customer has been given a timeframe to provide evidence, but a Service Officer makes a decision before the time expired. Or where evidence is received on time but there is a delay before it is documented in Cuba and in the meantime a decision is made to reject the application
• based on an error of law or fact. For example, a decision to refuse an application for an assessment even though Child Support had the necessary evidence to presume parentage from a previous application

Errors made by delegates when making Change of Assessment (COA) and departure prohibition order (DPO) decisions do not fall into the simple or complex categories and cannot be remedied by using either section 75 or section 42.

If an error is identified do not attempt to correct it, all errors made by delegates must be referred to Program Advice.

COA

Section 75 cannot remedy an error with a COA decision. This is because a COA determination is a decision of a delegate to depart from the assessment. Section 75 can only be used to correct errors with the assessment.

Program Support Managers are responsible for evaluating and escalating these types of decisions by email to Child Support Program Advice. Program Advice will consider the facts and where necessary, refer to the delegate for a decision.

If the error is not with the decision but rather how it was applied, it may be appropriate to use section 75 to correct that error.

Where the correction will not have an effect on the outcome of a Notice of Determination (NOD) or a NOD has not been sent to the customers, see Change of assessment in special circumstances.

DPO

Any errors made in DPO decisions must be referred by email to Program Advice for analysis/authorisation.

Following review, if an error

• is not identified, notify the customer/s of this, and no further action is needed. Procedure ends here
• If preventative measures were applied (in accordance with correcting a simple Child Support error or correcting a complex Child Support error), follow the relevant process to remove these
• is confirmed:
• a formal decision to correct or not to correct the error must be made (as the Registrar has considered correction of the error)
• letters must be issued to all affected customers advising them of the decision and their review rights

A decision to not correct an error is considered complex. The decision needs to be made:

• by a PSM, where:
• both customers agree, or
• one customer does not want the error corrected and the other customer is uncontactable
• the Program Advice team, in all other instances

• For simple errors, see Correcting a simple child support error
• For complex errors, see Correcting a complex child support error
• For duplicate customer records, see Correcting a duplicate child support customer record

The Registrar may identify a potential error in a child support assessment when actioning work items. Errors can vary depending on the:

• type of error
• age of the error, and
• status of the case e.g., Active, Ended or Ended with arrears

The Registrar is not obliged to consider correcting an error, however where this occurs, the affected parents must be notified of:

• the error, and
• their original review rights

This may be done verbally or in writing, depending on the circumstances of the case. Select the examples for verbal or written notification.

If the Registrar considers correcting an error, a decision to either correct or not correct the error must then be made and affected parents notified of that decision.

Review the potential error and the status of the case.

Is there consideration to correct or not correct the error?

• Yes, go to Step 3
• No, go to Step 2

Examples of notification

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Generally, the Registrar is unlikely to consider correction of the error where a case:

• is ended with no arrears, and
• the customers have never raised issue with the error that has been identified

There may be:

• other circumstances where the Registrar may consider correction (or not) of an error on an ended case with no arrears, or
• times where the Registrar does not consider correction (or not) of an error on an active case or ended with arrears case

Where correction (or not) is not being considered:

• notify the customers of the existence of the error, and
• provide them with their review rights

Is there a current process in place where customer contact is actively occurring or has occurred in recent weeks?

• Yes:
• verbally notify all affected customers of the error and their rights verbally
• document the discussion in the customers Communication window
• No:
• issue an UQ96.00 - Notification of an error letter to all affected parties advising of the error, their review rights. Give them a specified response time (within 21 days of receiving notification of the error)
• document in the customers Communication window

After the due date has expired, if:

• neither parent responds within a reasonable timeframe:
• no further action is needed. Procedure ends here
• a decision is not needed to correct or not correct the error because the customers have been appropriately notified
• both parents respond within a reasonable timeframe and request the error not be corrected
• see Correcting a complex child support error and prepare a submission for PSM approval to not correct the error
• both parents respond within a reasonable timeframe and request the error be corrected
• See Table 1, Items 2-8 to determine the relevant error type (eg, simple or complex)
• follow the appropriate error correction process and make a decision
• one parent responds and does not want the error corrected and the other parent is not contactable
• see Correcting a complex child support error and prepare a submission for PSM approval to not correct the error
• one parent responds and wants the error corrected and the other parent is not contactable
• see Table 1, Items 2-8 to determine the relevant error type (eg, simple or complex)
• follow the appropriate error correction process and make a decision
• both parents respond within a reasonable timeframe and one parent requests correction and one parent requests the error not be corrected
• See Table 1, Items 2-8 to determine the relevant error type (eg, simple or complex)
• follow the appropriate error correction process and make a decision

Note: where a decision is made not to correct an error or no decision is made (i.e., the Registrar has not considered correction or not), manipulation of Cuba may be needed to make sure the error is not inadvertently processed along with other associated changes at a later stage. This must be documented on the notepad in the Case window or other relevant window when where manipulation has applied.

Generally, errors on cases that are active or ended with arrears will likely need consideration of whether or not the error should be corrected, particularly where it affects the current assessment or may reduce an outstanding debt or overpayment.

There may be:

• other circumstances where only notification of an error on an active or ended with arrears is required, or
• times where the Registrar does consider correction (or not) of an error on an ended case with no arrears

See Table 1, Items 2-8 to determine if the error correction is simple or complex. Follow the appropriate error correction process and make a decision.

The Registrar may identify a potential error in a child support assessment that affects multiple customers and/or may be a systemic issue.

The Registrar is not obliged to consider correcting an error, however where this occurs, the affected customers must be notified of the error and their (original) review rights.

If the Registrar considers correcting an error:

• a decision to either correct or not correct the error must then be made, and
• affected customers must be notified of the decision

Where a case is ended, has no outstanding arrears and the customers have never raised issue with the identified error, the Registrar will not consider correction of the error.

Issue UQ96.00 - Notification of error letters to all affected parties notifying them of the error and provide standard response times.

After the due date has expired, if:

• neither parent responds within a reasonable timeframe:
• no further action is needed. Procedure ends here
• a decision is not needed to correct or not correct the error because the customers have been appropriately notified
• both parents respond within a reasonable timeframe and request the error not be corrected
• see Correcting a complex child support error and prepare a submission for PSM approval to not correct the error
• both parents respond within a reasonable timeframe and request the error be corrected
• See Table 1, Items 2-8 to determine the relevant error type (e.g., simple or complex)
• follow the appropriate error correction process
• one parent responds and does not want the error corrected and the other parent is not contactable
• see Correcting a complex child support error and prepare a submission for PSM approval to not correct the error
• one parent response and wants the error corrected and the other parent is not contactable
• see Table 1, Items 2- 8 to determine the relevant error type (e.g., simple or complex)
• follow the appropriate error correction process
• both parents respond within a reasonable timeframe and one parent requests correction and one parent requests the error not be corrected
• See Table 1, Items 2-8 to determine the relevant error type (eg, simple or complex)
• follow the appropriate error correction process and make a decision

Note: where a decision is made not to correct an error or no decision is made (i.e., the Registrar has not considered correction or not), manipulation of Cuba may be needed to make sure the error is not inadvertently processed along with other associated changes at a later stage. This must be documented on the notepad in the Case window or other relevant window when where manipulation has applied.

Generally, errors on cases that are active or ended with arrears will likely need consideration of whether or not the error should be corrected, particularly where it affects the current assessment or may reduce an outstanding debt or overpayment.

After the Registrar has considered correction (or not):

• a decision to either correct or not correct the error must be made, and
• affected customers notified of that decision

There may be:

• other circumstances where only notification of an error on an active or ended with arrears is required, or
• times where the Registrar does consider correction (or not) of an error on an ended case with no arrears

See Table 1, Items 2-8 to determine if the error is simple or complex and follow the appropriate error correction process.

For information about how a customer’s ATO amended income is used in a child support assessment see Income processing for Child Support customers.

Due to a limitation in Cuba, some ATO amended incomes issued before 23 May 2018 that should be used in new assessments have not been applied correctly. Manual intervention is required to correct these assessments.

Note: WA ex-nuptial cases will continue to be based on the rules that applied prior to 23 May 2018, until 15 May 2019.

Defining ‘another child support case’

• References to 'another case' for a parent only apply to the situation where the other case is with a different party, for different children. Therefore, the parent has multiple (multi) cases
• When the other case is the reverse of the original one, with the same other party, for the same children, it is not legally ‘another child support case’

Multi-cases and amended income errors

• Where the following circumstances exist:
• a parent has an existing child support assessment using an initial ATO income for the LRYI, and
• an ATO amended income is later recorded for the parent for the same LRYI, and
• the Issue Date of the ATO amended income is before 23 May 2018 (except where the case is WA ex nuptial case, where it is limited to before 15 May 2019) and
• a new assessment, for the same LRYI is made on another of the parent's cases after the ATO amended income is recorded

The ATO amended income must be used in that new assessment for the other case but not used in the assessment in the first case. The exception is when the ATO amended income is covered within the list of specific statutory exceptions for using an ATO income in the first case.

Where such a multi-case amended income error is identified, it requires a complex error correction:

• Refer to an SSO or Program Support Manager (PSM) to perform a workaround by recording a formula modification
• See the Multi-case amended income error workaround table

Reverse case and amended income errors

For amended incomes issued prior to 23 May 2018, both the original case and the reverse case should continue to use the initial ATO income for the LRYI for the parent. The exception is when the ATO income is covered within the list of specific statutory exceptions for using an amended taxable income. Procedure ends here.

Due to Cuba limitations, the MAR is not being calculated correctly for some:

• parents who have more than 3 cases and
• cases where there is a non-parent carer (NPC)

For more information see Minimum annual rate to nil - Reducing child support assessments

More than 3 cases

If a parent is assessed to pay MAR and they are a parent in more than 3 cases (these include all cases, regardless of the parent's role), then the total amount payable is capped at 3 times the MAR and shared between all the cases.

When determining if the parent's MAR liability should be capped, Cuba is failing to include cases where the parent has a role as payee. As a result, some parents are incorrectly assessed to pay the full MAR on each case where they are the payer.

Example

A customer has 4 child support cases, one case as the payer and 3 as the payee. For the case as payer, they are assessed to pay the MAR (annual rate of $459).

This is incorrect as the annual rate should be calculated as 3 x $459 (MAR)/4 (cases). Therefore, for the case as payer the annual rate should only be $344.

NPC cases

If a parent is assessed to pay MAR in a case with more than one carer (a payee and an NPC, or multiple NPCs), the MAR is paid to the carer with the most care, or shared between the carers if they have equal care.

Cuba is sometimes applying MAR per child, instead of recognising all of the children of the relationship as being part of the same case. Cuba is also not always correctly determining if the total amount payable should be paid to just one of the carers or shared between them.

As a result, some parents are incorrectly assessed to pay the full MAR to each carer in the same case, or to pay MAR despite having at least regular care of at least one child of the case, or to pay incorrect portions of MAR to one or more carers.

The Resources page contains further examples of MAR apportionment errors.

Where a MAR apportionment error is identified, it requires a complex error correction:

• Refer to an SSO or PSM to perform a workaround by recording a formula modification
• See Table 6

Determine the correct annual rate that should be applied based on the amended income. Use the appropriate child support calculator to accurately make that calculation.

Calculate the expected difference between the current and new liability based on the correct annual rate. If there are any concerns about completing these calculations seek PSM support. If applying the amended income would create a payee overpayment, refer to Program Advice to determine whether the overpayment would be recoverable if it is created, before taking any further action.

Contact both parents to explain the error, and the expected financial impact applying the amended income will have. Offer to transfer the parent to Centrelink to discuss possible impacts on their Family Tax Benefit.

When the parents are contacted to discuss the error correction, stress to all parties that this type of error correction does need to be monitored, because Child Support cannot guarantee that it will be automatically adjusted if circumstances change.

For example:

• new CS Period starts
• new income is used for a parent
• care changes for a child

The customers should call to check that the manual assessment rate calculations are being checked and updated in response to changes in circumstances.

If unable to contact one of the parents by phone, send a unique CAL incorporating the following suggested text:

For the parent whose income requires correction:

"We would like to discuss the child support assessment between you and (other party's name) but have been unable to speak with you. Currently your original taxable income of $xxxx, is used to calculate your assessment, however your amended taxable income of $yyyy, should be used instead. If we do not hear from you by dd Month YYYY, we will replace your original taxable income of $xxxx with your amended taxable income of $xxxx from dd Month YYYY.

This will create arrears which we would like to discuss with you" or "This will reduce your outstanding debt. Your next monthly account statement will reflect an updated balance".

For the other parent

"We would like to discuss some details relating to the income being used in your child support assessment with (other party's name) but have been unable to speak with you. If we do not hear from you by dd Month YYYY we will update your assessment in line with the information available to us".

Apply a formula modification in the relevant case to set the annual rate based on the amended income.

• Start point: Formula Modification window
• Select the Add radio button in the Action Required group box
• In the Modification Details group box:
• type the date the modification is to apply from in the From Date field (the start date of the child support period)
• type the date that the modification is to apply to in the To Date field (usually this would be to the end date of the child support period)
• Select the appropriate type in the Type drop down list (use the default REQUIRES MANUAL that appears when the Add radio button is selected)
• In the Adjust by group box:
• select the appropriate radio button for modifying the formula to Adjust by amount
• type the correct amount of annual rate (as calculated based on the Amended income) in the Set To in the field
• Check Eligibility to make sure the pre-confirmation results reflect the changes calculated
• After saving Eligibility, check the letters generated, are correct

Add the following special indicator to both parents' profile windows "Formula modification XX/XX/16-XX/XX/18, check eligibility"

Complete the Manual ATO amended income decision template and save in the formula modification/case window with a notepad title 'MANUAL ATO AMENDED INCOME DECISION'.

The Resources page contains the text required for the template.

For SSOs and PSMs only

For parents with more than:

• three cases, the amount payable for each case where MAR is applicable is determined using the formula in section 66(6):
• 3 x MAR / number of cases = Annual rate for each case. The Resources page contains further examples
• one carer in the same case, the MAR amount is paid to the carer with the most care or shared between carers with equal most care. Total care for each payee can be determined as follows:
• Payee's care percentage for all children of the case/total possible care percentage for all children of the case

Note: to ascertain which MAR amount should be used, the References page contains a link to Formula tables and values - 2.4.2 - Child Support Guide for the MAR applicable to the affected child support period.

A Service Officer is able to action the manually calculated MAR amount, after an SSO/PSM give advice.

Apply the manually calculated MAR amount in the Formula Modification window of each case (or Cuba case) for each relevant payee as follows:

• From Date: The commencement date of the MAR calculation
• To Date: End date of case. See information at the end of the bullet list
• Type: Requires Manual
• Adjust by: Amount
• Set To: The MAR amount applicable to the individual Cuba case for the relevant payee
• Check Eligibility to make sure the pre-confirmation results reflect the changes calculated
• After saving Eligibility, check the letters generated are correct

'To Date'

If there is a known future date where MAR will no longer be applicable for example:

• a CS Period will commence soon using a new income making MAR no longer applicable, or the MAR amount will change, for example one of the cases is due to end on a known future date and therefore the MAR apportionment will need to be recalculated), then the 'To Date' should be this known future event date

However, if MAR will be applicable into the future and there is no known event that will end/vary the MAR apportionment calculation, record the 'To Date' as the end date of the case, not the end date of the current child support period. When the parents are contacted to discuss the error correction, stress to all parties that this type of error correction does need to be monitored, as Child Support cannot guarantee that it will be automatically adjusted if circumstances change.

So, if circumstances do change, for example new CS Period starts/new income is used for a parent/care changes for a child, they should call Child Support to check that the manual assessment rate calculations are being checked and updated.

When an event that would ordinarily change the MAR assessment amount occurs and eligibility needs to be saved, if eligibility is run Cuba will display the manual assessment in the pre-confirmation window to prompt this manual assessment to be reviewed and updated if necessary, see Formula Modification Window Help.

Add the following line to the Special Contact Detail within the Client Profile window: MANUAL ASST. WORKAROUND-NOTES DD/MM/YYYY.

Complete the template and save in both the Client Profile window and the formula modification/case window with a notepad title MAR MANUAL ASST. WORKAROUND.

Template

• Subject: MAR MANUAL ASST. WORKAROUND - DD/MM/YYYY
• Body of text: MAR manual assessment workaround
• 'A manual MAR apportionment calculation has been applied to this case via the formula modification window due to Cuba functionality limitations. Payer (name) has (number of cases) cases where MAR is to apply.'
• The following calculation has been used: 3 x minimum annual rate / number of cases = annual rate for this case
• From Date: (Add start date)
• To Date: (Add end date)
• Type: Requires Manual
• Adjust by: Amount
• Set To: (Add manual MAR amount)

The Resources page contains the text required for the template and examples of incorrect MAR apportionment errors.

Ask an SSO log a Cuba Service and Business Request form.

Note: the SSO should quote PM62507 in the Brief description about the incident field.