Centrelink action for Child Support Prescribed Income Test for a Stage 1 customer 277-51040020

Child Support collect customer or paying parent contacts about ceasing enforcement of a Stage 1 court order/ agreement for child support due to the payer's income.

If a private collection customer advises they cannot collect the full amount of a court order/ registered agreement for child support, they will need to apply for Child Support collection or seek an exemption. See Family Tax benefit customer not receiving full child support entitlement privately.

If the paying parent contacts, or advise they need to lodge an application in writing, they are to contact Child Support directly, either online or by phone, to apply for a child support assessment. Refer the customer to Child Support. For contact details, see Child Support.

Child Support sends a Prescribed Income Test Information () request to Centrelink Child Support Unit (CSU) by completing the Centrelink/Child Support information exchange macro and selecting the Prescribed Income Test (PIT) information tick box.

The macro generates an email to the Centrelink Child Support Unit to confirm if the payer receives or has applied for a Centrelink pension or benefit.

See Transfer of information between Centrelink and Child Support.

Child Support Unit (CSU) Processing Services staff

CSU to check details and advise Child Support by responding to the email that is generated and sent to CSU when the Centrelink/Child Support information exchange macro is completed:

• Verify paying parent is receiving a Centrelink pension or benefit
• Manually check Prescribed Income Test is satisfied: paying parent's combined income from social security pensions or benefits, (less Rent Assistance and other non-taxable additional payments) plus any other ordinary income, does not exceed the highest single rate of pension

See Payment rates and thresholds.

Child Support determines date from which enforcement of the court order/ agreement is to cease, ensuring that an overpayment of child support does not occur. Date may be either:

• date income support payments commenced
• date on which the last child support payment was made to the customer

Child Support electronically advises Centrelink of changes to child support entitlement/ disbursements for mutual customers. Action taken to obtain child support is satisfied for the period of non-enforcement.

If Child Support has suspended collection, on the Maintenance Entitlement Group Details (MNGD) screen, Collection Method: will display PR', and Group Annual Mtce Ent: will display $0 SUS.

Child Support Unit (CSU) Processing Services staff

Child Support will conduct regular reviews to check that non-enforcement should continue by liaising with the Centrelink CSU.

CSU determines if payer still meets the criteria on the date on which Child Support makes the request. A check of the payer's payment history is not required.

If the paying parent no longer satisfies the criteria for non-enforcement, Child Support will recommence child support collection on the date on which the income support payment ended or the date on which the Prescribed Income Test is no longer met.