Centrelink action when a Child Support collection customer is owed or receives child support arrears 277-51040030

If the customer:

• has changed from private collection to Child Support collection and Child Support has accepted the customer's request to collect arrears, go to Step 2
• has received child support arrears via Child Support, go to Step 3

When Child Support accepts a case for collection, the customer is issued a letter advising:

• the period for which they have asked the payer to pay child support arrears
• the amount of arrears to be collected
• to contact Centrelink as the customer may not have been paid their full Family Tax Benefit (FTB) entitlement
• maintenance income for the arrears period should be adjusted so that the maintenance income is not counted twice. Arrears payments collected by Child Support are automatically reported to Centrelink and included in the Maintenance Income Test. An adjustment needs to be made for the private collection period (to which the arrears relate) to ensure child support is not duplicated
• the customer should be advised that their maintenance income will be adjusted to reflect the amount they received (their full child support entitlement less arrears to be collected), and any FTB top up for the period will be included in the FTB reconciliation calculation after the end of the relevant financial year

Has the customer advised that they have claimed arrears and the request has been accepted by Child Support?

Note: if a disbursement (child support payment from Child Support) is received during a private collection period and the customer is now Child Support collect, the disbursement will be added to the apportioned entitlement amount for the private collect period if the Disbursement Method is used to estimate annual maintenance income - this is the same as the reconciliation calculation.

• Yes:
• create a Fast Note, select Auto Text, use Families > Enquiry > Maintenance Enquiry)
• the Fast Note must include the total arrears amount, any arrears received privately during the unpaid arrears period and the date from which child support will collect arrears (as requested by the customer)
• Keywords: the Maintenance Enquiry template automatically includes the relevant 'ACTCSU' keyword. If the request is urgent the 'URGENT' keyword must be manually added to the Fast Note
• Child Support Unit (CSU) and Integrated Care (INC) team, go to Step 7
• No, go to Step 3

If arrears are received for a child who is no longer an FTB child or who does not attract more than base rate FTB Part A, it is not maintenance income.

To view disbursements (child support payments from Child Support):

• type MNAP in next:, press [Enter]
• on the Mtce-Child Support Agency Disbursed Payments: All-Grps Summary (MNAP) screen, type 'S' next to group and press [Enter] to display details for a group (payer)

Payments, including arrears, will appear as 'Normal', 'Emergency', or 'Non-agency Payment' under Payment type: on the Mtce - Child Support Agency disbursed payments: Group (MNGP) screen.

• Yes, FTB Part A may reduce from date paid to plus one day if estimated annual maintenance income increases. Check the maintenance income assessment method being used by viewing the Maintenance Group Details (MNGD) screen:
• if Entitlement Method, go to Step 5
• if Disbursement Method, go to Step 6
• No, advise the customer that arrears are included as maintenance income when working out their FTB Part A for this financial year. Procedure ends here

The system automatically applies the assessment method that results in the higher annual maintenance income amount.

This helps to offset any overpayment of FTB that has already occurred and reduces the risk of a debt being calculated during the reconciliation process after the end of the financial year:

• if the Disbursement Method is used, the child support arrears will be included in the year to date total
• if the Entitlement Method is used, annual maintenance income for ongoing FTB payments is based on child support entitlement for the financial year

It is likely that receiving child support arrears will result in a change to the Disbursement Method.

The Maintenance Income Test (MIT) Explanation Details (MNED) screen explains the assessment method used and the annual maintenance income assessment. For more information, see Modified Entitlement Method.

View ongoing FTB Part A rate and maintenance income reduction on details on the Period Rate Explanation (REXFTBA) screen.

At FTB reconciliation, the arrears payment will be included in the total maintenance income for the financial year. Customers may benefit from the Maintenance Income Credit (MIC) which is calculated during FTB reconciliation.

Advise the customer of the details of the assessment and record details of the conversation on a DOC.

Procedure ends here.

Arrears will be included in the year to date total.

The MIT Explanation Details (MNED) screen explains the annual maintenance income assessment. For more information, see Modified Entitlement Method

View FTB Part A rate and maintenance income reduction on the REXFTBA screen.

At reconciliation, the arrears payment will be included in the total amount for the year. Customers may benefit from the Maintenance Income Credit (MIC) which is calculated during FTB reconciliation.

Record details on a DOC, noting information given to customer and any updates.

Procedure ends here.

For Child Support Unit (CSU) and Integrated Care (INC) staff only

The customer advises Child Support has accepted a request to collect arrears owed from a private collect period. An adjustment is required to ensure maintenance income is not counted twice:

• check details in Fast Note received
• confirm the details provided by the customer within Cuba
• confirm unpaid arrears and collection date in Cuba case collection details window
• from the Case window in Cuba:
• click the Go menu
• select Collection Details
• highlight and click open the Opt In dialogue box where the unpaid arrears amount and collection date can be confirmed

Do the details match the Fast Note received and has Child Support accepted a request to collect arrears for a private collect period?

Note: the Child Support assessment will be deemed for the private collect period. The MAT code will be automatically updated to reflect the date Child Support accepted a case for collection, however this will not reflect the arrears period.

• Yes, go to Step 8
• No, contact the customer to discuss the details before proceeding and record details on a DOC. Go to Step 8
• No, and Child Support has not accepted the request to collect the unpaid arrears, record that details do not match on a DOC. Procedure ends here

For Child Support Unit (CSU) and Integrated Care (INC) staff only

• Yes go to Step 9
• No, Record and update maintenance income to exclude unpaid arrears of maintenance income from a private collect period.

The arrears period will be calculated using information obtained from Child Support. The MAT code 'COL' (Applied for Child Support collection) will be used to represent the Child Support arrears period, to avoid maintenance income being counted twice.

The Child Support assessment amount will be used for the duration of the 'COL' period and be included in the Maintenance Income Test unless a change in assessment method has been recorded. At reconciliation the actual amount disbursed by Child Support during the 'COL' period will be included in the Maintenance Income Test, to avoid maintenance income being counted twice for the three month arrears period of private collect.

It is possible the MAT code 'COL' may need to be recorded with more than one event date. The MAT code has a review period of 70 days; however, Child Support may collect arrears for a period up to 90 days (more in limited situations).

To prevent 'double counting' of unpaid Child Support arrears:

• Once the unpaid arrears amount and collection date has been confirmed:
• 'S'elect the child from the Maintenance Entitlement Group Summary (MNGS) screen and go to the Maintenance Action (MNMA) screen via the Maintenance Action Result (MNMR) screen
• Event Date: the date confirmed from Cuba
• Maintenance Action Input: 'COL'
• Note: an additional event date will need to be coded for 70 days after the original 'COL' event date when recording the entire three month arrears period
• record details on a DOC and finalise activity on the Assessment Results (AR) screen

The arrears period will be initially calculated using information obtained from Child Support. The MAT code COL (Applied for Child Support collection) will be used to represent the Child Support arrears period, to avoid maintenance income being counted twice.

The Child Support assessment amount will be used for the duration of the 'COL' period and included in the Maintenance Income Test unless a change in assessment method has been recorded. At reconciliation the actual amount disbursed by Child Support during the 'COL' period will be included in the Maintenance Income Test.

• Once the unpaid arrears amount and collection date has been confirmed:
• 'S'elect the child from the Maintenance Entitlement Group Summary (MNGS) screen and go to the Maintenance Action (MNMA) screen via the Maintenance Action Result (MNMR) screen
• Event Date: the date confirmed from Cuba
• Maintenance Action Input: COL
• Note: an additional event date will need to be coded for 70 days after the original 'COL' event date when recording the entire three month arrears period

Record details on a DOC and finalise activity on the Assessment Results (AR) screen.

Note: the application of the 'COL' MAT code also means that at reconciliation only the actual amounts disbursed by Child Support during the 'COL' period will be included in the Maintenance Income Test. To ensure that all maintenance received by the customer is assessed, the Override Maintenance Income (MNOI) screen will need to be coded to include the actual amounts collected by the customer during this period plus any disbursements received during the collect period.

For Integrated Care staff

Create a Fast Note, select Auto Text, use Families > Enquiry > Maintenance Enquiry. The Child Support Unit codes the Override Maintenance Income (MNOI) screen to include the maintenance income that was declared as received/collected by the customer during the underpaid private collect period.

The DOC must include:

• the relevant payer's name
• the relevant children's names
• the amount received during the private collect period (effectively their full child support entitlement less arrears to be collected)
• that the amount pertains to an earlier period of 'underpaid private collection' where Child Support has agreed to collect arrears. The actual amount collected by the customer plus any Child Support disbursements received during the collect period must be included in the maintenance income test

CSU staff only

To ensure this occurs code the Override Maintenance Income (MNOI) screen to include the maintenance income that was declared as received/collected by the customer during the underpaid private collect period.

The following information is required to code the MNOI screen:

• the relevant payer's name
• the relevant children's names
• the amount received during the private collect period (effectively their full child support entitlement less arrears to be collected)
• that the amount pertains to an earlier period of 'underpaid private collection' where Child Support has agreed to collect arrears. The actual amount collected by the customer plus any Child Support disbursements received during the collect period must be included in the maintenance income test
• the Opt In dialogue box in Cuba will provide details of the child support arrears start date and the child support amount that has already been paid privately to the customer for the arrears period (as declared by the customer to Child Support).

See Amending maintenance income details on the Override Maintenance Income (MNOI) screen for further information.