Recording child support details for a previous year Family Tax Benefit (FTB) claim in Customer First 277-51070020

Families and Child Care Processing staff

Customer lodges a FTB lump sum claim or later advises a change to child support details for their claim.

Details provided by the customer are recorded and used to assess FTB for the previous financial year only. They do not affect ongoing FTB instalments.

From 1 January 2012 children aged 16-18 years will also be included in lump sum claim processing when applying the Maintenance Action Test (MAT), Maintenance Income rules and assessing Maintenance Income Credits (MIC).

FTB mixed delivery customers: If the customer also claimed FTB instalments in the same financial year, child support details provided for the lump sum claim will be used to reassess FTB for the instalment period, even if the lump sum claim is rejected. If there is a significant difference between details on the record and details advised on the lump sum claim, follow this up with the customer.

Go to the Maintenance Details Selection (FMPYS) screen for the relevant financial year.

Did the customer have a child from a previous relationship in their care during the relevant financial year?

• Yes, code 'Y' in Children from previous relationship? field. For financial years:
• 2008-09 through to 2010-11, go to Step 3
• 2011-12 onwards, go to Step 4
• No, code 'N' in Children from previous relationship? field. Procedure ends here.

Has the customer given their permission on their claim to obtain information directly from Child Support?

• Yes, code 'Y' in Use Child Support Agency data? field. Go to Step 6
• No, code 'N' in Use Child Support Agency data? field. Go to Step 7

From 2011-12 onwards, all claims are assessed using information from Child Support. Customers can no longer self-assess their child support.

If the customer indicates on the claim that they have not taken action for their child, and they have not given a reason for which an exemption may be applicable (e.g. other parent overseas, family and domestic violence, parentage unknown etc.), the customer fails the Maintenance Action Test (MAT) for the relevant child for the relevant financial year.

The Use Child Support Agency data? field will automatically default to 'Y'. Do not attempt to change this, even if the customer has not taken action to obtain child support.

A Manual Follow-up (MFU) is created when the lump sum claim activity is finalised but the claim status is pending, awaiting child support details, see 'Family Tax Benefit (FTB) lump sum claim pending Child Support data' information in Child support Manual Follow-up (MFU) activities and automatic reviews for further details.

For action by:

Child Support Units

Check that mutual customer matching with Child Support has been successful and take appropriate action if there has been a mismatch at the customer, payer or child level.

If there are no mismatches, contact Child Support to confirm if the customer did in fact have a child support case for the relevant financial year. If it is confirmed that the customer:

• did have a child support case during the financial year, close the MFU and providing all other reconciliation conditions are met, reconciliation will occur once the data is received. Procedure ends here.
  If the customer is part of the one case issue for years 2011-12 and ongoing:
• Do not change the customer's option of matching with Child Support on the Maintenance Details Selection FMPYS screen.
• Record the maintenance action for the relevant child/ren as 'MWP' on the Maintenance Action Input (MNMA) screen from the relevant date as advised by Child Support. Note: 'NMA' needs to be coded from the start of the following year. This ensures that the child/ren do not remain as 'MWP' children, which could affect future claims.
• Record any Maintenance income for the relevant child/ren as voluntary on the Actual Maintenance Collected - Group MNAG screen. Note: an amount must be recorded, even if it is zero, or the claim cannot finalise. If the system will not accept 'voluntary' coding of child support, code the value as 'actual', the amount must be ended from the end of the claim period (30 June or the date the child left care).
• did not have a current child support case during the financial year, send a Fast Note to FCC using Auto text, use Families > Claims > FTB LSC pending child support data. Procedure ends here

Smart Centre Processing teams

If the Fast Note from the CSU indicates that there is no child support case, check if the customer may be entitled to more than base rate FTB due to income. If so, call the customer to explain that Child Support has confirmed they did not have a child support case, therefore they can only be assessed for FTB at the base rate (due to failing the MAT).

• If the customer is adamant they have taken action, advise them they will need to supply evidence of this (e.g. child support case number)
• If the customer confirms they did not take action, check if there was any reason that prevented them from doing so (e.g. family and domestic violence, other parent overseas, parentage unknown, etc.). If an exemption may be applicable, see Exemptions from seeking child support for Family Tax Benefit (FTB) customers.

If the customer did not take action and an exemption is not applicable or the customer is not entitled to more than base rate FTB due to income, they will fail MAT for the relevant child for the relevant financial year. Update as follows:

• Do not change the Use Child Support Agency data? field on FMPYS screen.
• Record maintenance action for the relevant child/ren on MNMA screen.
• Code 'AXB' (Accepts base rate) for the relevant child/ren from the later of:
• the beginning of the relevant financial year or
• the end of the DMA period.
• Then code 'NMA' (No maintenance action) for the relevant child/ren from the start of the following financial year. This ensures that the child does not remain as an AXB child, which could affect future claims.
• Repeat for all relevant children.

Ensure that the DOC contains all information obtained from the customer. The DOC also needs to state: 'AXB has been used for the financial year as the customer did not take reasonable action and AXB has therefore been coded to ensure that only base rate is paid. NMA has been coded from 1 July of the next financial year so that the customer is not identified as an ongoing AXB customer.'

The customer's claim will not be finalised until data is received from Child Support.

From 1 January 2012 this also includes children aged 16-18 years who are in full time secondary study and Child Support extension data for children who turn 18 whilst a full time secondary student.

• If the data has been received, go to Step 9
• If the data has not been received, an auto review will create a manual follow-up activity 28 days after the activity is completed. Additional action will be required to assess the claim in order to correct a mismatch or to self-assess due to the 'one case issue'. See FTB lump sum claim pending Child Support Agency data workaround details.

Did the customer or their partner have a child support entitlement registered for collection by Child Support during the financial year?

• Yes, manually calculate their Maintenance Income Credit. When completed, continue below.
• No, continue below.

Go to the Maintenance Details Selection (FMPYS) screen for the relevant financial year.

'S'elect the person (customer, partner or ex-partner) who was entitled to child support during the year or who was not required to take action to obtain child support for their child from a previous relationship. The FMPYS screen lists all partners linked to the customer on the Marital Status (MS) screen.

To add a payer group, code 'Y' in the Add new group?: field.

To correct details, code 'C' next to payer group or child and then update details.

To delete details, code 'D' next to payer group or child and confirm deletion, e.g. wrong payer group type, payer group was recorded against the wrong person, or the child was added to the wrong payer group.

Did the person receive child support income from the payer during the relevant financial year?

• Yes, code 'ENT' in Group Type: field
• Code name of paying parent in the Payer: field
• If the payer died during the relevant year, code Date of Death: field
• No, code 'OTH' in Group Type: field

Code Y in Group Children? Field.

'S'elect children on the Maint LSC Group Children (MLGC) screen to link to the group, and confirm selection.

'S'elect child on the MLGS screen.

If details exist for the child, selecting the child from the MLGS screen will display the MNLC screen. Use the Go to MLMA option on the MNLC screen to update details on the MLMA screen to correct or delete the details.

Record details as advised by the customer:

• In Event Date field, code the date the customer/partner:
• took action to obtain child support for the child, e.g. the date they applied for a child support assessment
• was exempted from obtaining child support for the child, e.g. the date the child entered their care, or
• was not required to obtain child support, e.g. the start of the current relationship period, date the child entered their care
• In Maintenance Action field, code the relevant maintenance action code. Use [?] field help for valid codes for lump sum claims. Some MAT codes will auto display after details are coded on other screens, e.g. foster care or adoptive parent exemption per details on the Child Miscellaneous Circumstances (CHM) screen

Press [Enter] twice to view the results of the application of the Maintenance Action Test for the child on the Maint LSC Maint Results (MNLC) screen.

Press [Enter] until the Mtce LSC Income Details (MLID) screen displays.

Mtce LSC Income Details (MLID) screen

Code the total child support income received from the payer for the child during the relevant financial year less any Maintenance Income Credit depletion amount:

• Code amount received via Child Support collection in the Child Support Agency Received Amount: field
• Code amount collected privately in the PRI Received Amount: field
• Code amount of child support that was paid in relation the child's disability expenses in the Disability Expenditure Amounts: field. This amount is exempt under the Maintenance Income Test
• Press [Enter] twice to return to the MLGS screen
• If necessary, 'S'elect other child/ren in payer group from MLGS screen to record details for the child

Once all children have been added to the payer group, return to the MLGS screen to add another payer group if applicable, e.g. customer and partner were each entitled to child support or they were entitled to child support from more than one person.

For Child Support Unit (CSU) staff only: If applicable, code the carry over Maintenance Income Credit balance, after any MIC accrual/ depletion for the relevant financial year, on the Override Maintenance Income (MNOI) screen.

• Finalise lump sum claim assessment or finalise lump sum claim recalculation activity on Assessment Results (AR) screen. Note: the claim will remain pending until the following details are available:
• Maintenance data from Child Support if the customer authorised Centrelink to obtain data from Child Support
• Adequate care details for claims for 2010-11 onwards. Child Support care assessment data is used for a child support assessment period. See Alignment of Care processing - Family Tax Benefit (FTB) lump sum claims
• Record details on a DOC

FTB mixed delivery customers

If the FTB lump sum claimant had also claimed FTB instalments in the same financial year, the child support details recorded for the lump sum claim will be used to assess FTB Part A for the instalment claim period. This may change the FTB reconciliation result.

For details of how maintenance income is calculated, including examples, see Maintenance Income Test (MIT) for Family Tax Benefit (FTB).