Non-cash maintenance income assessment for Family Tax Benefit (FTB) 277-51100000

For details about the definition of child support or spousal maintenance, see Is it child support/ maintenance income.

Is the non-cash child support part of a child support agreement accepted by Child Support?

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

Centrelink staff no longer manually code or assess child support agreements with a start date of 1 July 2008 or later.

For agreements with a start date before 1 July 2008, staff must manually record any non-cash maintenance on the Centrelink system for the period up to and including 30 June 2008.

Centrelink maintains the non-cash maintenance previously coded on the Centrelink system for agreements that were in place before 1 July 2008:

• that have been accepted by Child Support, and
• transitioned under the Child Support Scheme Reforms from 1 July 2008

A manual review activity will create, if:

• non-cash maintenance is recorded, and
• the customer enters into a child support agreement

This is to decide if the manually recorded non-cash maintenance should be zeroed.

If non-cash maintenance details need recording or updating for the agreement:

• see Child support agreements in Maintenance Income Test (MIT) for Family Tax Benefit (FTB)
• procedure ends here

• Yes,
• refer the customer to Child Support. For contact details, see Child Support
• if they get child support and/or spousal maintenance directly from the paying parent, procedure ends here
• No, go to Step 4

Centrelink deems private collect customers as getting their full child support entitlement. The customer only needs manual assessment and coding if they say they:

• have a partial exemption in place and they are collecting a lesser amount or more than the amount they previously said they were collecting
• get more than their full ongoing entitlement, and the extra amount received is for arrears owed for a private collect period before 1 July 2012, or
• have transferred from Child Support to private collect and has asked Child Support not to collect arrears owed from the Child Support collect period

Is it a one-off lump sum or transfer of an asset (as a property settlement)?

• Yes, staff must assess and record this as capitalised maintenance income. Procedure ends here
• No, go to Step 6

To assess the value of a non-cash benefit, see:

• Assessing accommodation expenses as maintenance income, see Table 2
• Assessing motor vehicle expenses as maintenance income, see Table 3
• Assess health expenses for maintenance income, see Table 4
• Application of Maintenance Income Test (MIT) for loan repayments, see Table 5
• Assessing income from trusts as maintenance income, see Table 6

Record privately collected non-cash maintenance income as actual maintenance. See Recording private maintenance income.

A Family Tax Benefit (FTB) customer or their partner get child support or  spousal maintenance  as accommodation expenses.

For action at initial contact, or to decide if the value of the accommodation expenses needs a manually assessment and recording.

Does the customer live in the accommodation?

• Yes,  go to Step 2
• No, do not assess as maintenance income unless it is stated as child support or spousal maintenance in a court or Child Support registered agreement.
• If it is,  go to Step 3
• Otherwise, procedure ends here

Is the accommodation in the name of either parent? (Unless a property settlement has been finalised, assume 50/50 ownership)

• Yes,  go to Step 3
• No,  go to Step 5

If mortgage payments are paid as child support and/ or spousal maintenance, is the purpose of the mortgage to buy the home?

• Yes,  go to Step 4
• No, do not assess as child support unless the customer gets some benefit or if it is part of a formal agreement

Has a formal property settlement been finalised for the property?

• Yes,  go to Step 5
• No,  go to Step 6

Does the paying parent share the accommodation with the customer?

• Yes,  go to Step 6
• No,  go to Step 7

• For example - mortgage payments: The first 50% of the normal mortgage payment that is supposed to be paid does not count. for example, if this is $2000 per month and the paying parent only pays $1000, assess the amount for child support as nil
• For example - rent: If the total rent payable is $100 per week, assess the amount for child support as $50 per week. For example, if the paying parent only pays $80 of the $100 payable, assess the amount for child support as $30 per week
• If free or subsidised accommodation: This only applies if the property is solely in the paying parent's name. Assess 50% of the market rental value. If possible, the customer should give evidence of the market rental from a real estate agent or other source
• If other people share the accommodation  with the customer's family, the amount payable is the customer's family's share of the total

To record maintenance income, see  Recording private maintenance income on Centrelink systems.

Procedure ends here.

Assess the full amount paid to give housing for the receiving parent's family.

If free or subsidised accommodation:

• This only applies if the property is solely in the paying parent's name
• Assess the market rental value less any amount the customer pays. (If possible, the customer should give evidence of the market rental value from a real estate agent or other source)

Do not assess any mortgage payments

• If the property is jointly owned after a property settlement, then any child support would be assessed differently
• See  Updating and effect of capitalised maintenance income assessment for Family Tax Benefit (FTB)

If other people share the accommodation  with the customer's family, the amount payable is the customer's family's share of the total.

To record maintenance income, see  Recording private maintenance income on Centrelink systems.

A Family Tax Benefit (FTB) customer, their partner or their FTB child gets a motor vehicle or motor vehicle expenses as child support or spousal maintenance.

For action at initial contact, or to decide if the value of the motor vehicle or expenses needs a manual assessment or recording.

Is the vehicle available for the payee to use?

• Yes,  go to Step 3
• No, do not assess as maintenance income unless it is stated as child support or spousal maintenance in a court or Child Support registered agreement. Procedure ends here

Is the car also available for the payer's use?

• Yes,  go to Step 5
• No,  go to Step 4

Assess all running expenses paid by the payer. For example:

• petrol
• oil
• batteries
• tyres
• registration
• ongoing maintenance

Go to Step 6.

Only assess extra running expenses that the payer must pay so that the vehicle is available for the payee to use.

For example: Payer contributes $50 per week for petrol, but the car is available for both to use. Only assess $25 per week as maintenance.

Does the payee own or jointly own the vehicle?

(If there is a joint loan for the car, take it as jointly owned).

• Yes,  go to Step 7
• No,  go to Step 8

Assess the portion of expenses that relate to the payee's ownership of the vehicle. For example:

• car loan repayments
• car insurance
• modifications
• major repairs

If jointly owned by payer/payee, assess 50% of those expenses.

If ownership of the vehicle has been transferred to the payee, staff may assess it differently depending on the value. See  Updating and effect of capitalised maintenance income assessment for Family Tax Benefit (FTB).

To record the value as ordinary maintenance income, see  Recording private maintenance.

Procedure ends here.

If the payee does not own the car, staff must not assess expenses such as:

• car loan repayments
• car insurance
• modifications
• major repairs

The payee is not benefiting from these because the vehicle does not belong to them.

For action at initial contact, or to decide if they need a manual assessment.

For other medical expenses,  go to Step 2.

For private health insurance,  go to Step 3.

Can the payer claim back any amount from Medicare or from private health insurance?

• Yes,  go to Step 5
• No,  go to Step 4

Does the private health insurance cover the paying parent and/or their new family?

• Yes,  go to Step 6
• No,  go to Step 4

Record the amount paid as maintenance income (make sure the 30% government rebate is taken off the premium).

Procedure ends here.

Deduct the amount the payer would claim back from their health fund from the full amount paid.

Staff may need to contact the health insurance provider to find out how much the refund will be.

Record private maintenance income.

Procedure end here.

Deduct the amount the payer would normally pay to cover their new family.

Assess the total amount paid, less the amount the payer would pay to cover themselves, their new partner, and any children of the new relationship. (Make sure the 30% government rebate is taken off the premium).

Staff may need to contact the health insurance provider to find out how much the paying parent would need to pay to only cover themselves (and their new family).

If the payer does not need to pay any more to cover the children from the previous relationship, there is no amount to assess as child support.

Record private maintenance income.

For action at initial contact, or to decide if the loan repayments need a manual assessment and recording.

Is the asset or credit card available for them or their child to use?

• Yes,  go to Step 2.
• No, do not assess as maintenance income. Procedure ends here

Is the loan either solely or jointly in the customer's name?

• Yes,  go to Step 3
• No, do not assess as child support income
• If the customer has access to a credit card,  go to Step 3
• Otherwise, procedure ends here

If joint loan, the asset is taken to be jointly owned.

Is the loan in the customer's name only?

• Yes,  record the full amount paid as maintenance income
• No,  go to Step 4

Only assess 50% of the loan repayments as maintenance income if the loan is in joint names.

Credit cards: if the payee has sole ongoing access to credit made available by the repayments, staff can assess the full amount paid off the credit card as child support. Regardless of whose debt is being paid off.

See  Recording private maintenance income.

A Family Tax Benefit (FTB) customer or their partner gets income from a trust as child support or spousal maintenance.

For action at initial contact, or to decide if they need a manual assessment.

They must be a beneficiary to get income from the trust.

• Yes,  go to Step 3
• No, there is no income to assess. Procedure ends here
• Unsure, ask for trust documents.  Go to Step 6

If the trust is a discretionary trust, has the discretion to release the payments been exercised?

• Yes,  go to Step 4
• No, there is no income to assess. Procedure ends here
• Unsure, ask for trust documents.  Go to Step 7

• Yes, the payment is not considered child support. Assess as ordinary income
• No, assess as maintenance income

See  need to request trust documents.

• Yes,  go to Step 6
• No, to assess as:
• ordinary income,  go to Step 7
• maintenance income,  go to Step 8

Centrelink needs these documents to make a correct decision. These assessments are often complex, and the agency needs to know the complete picture.

• Check if the agency has the trust documents (check Document List (DL) screen for relevant  DOCs)
• Issue a Module PT - Private Trust for income support customers only
• Ask customer to give, if available:
• Trust Deed (has details about the setup of the trust)
• most recent income tax return of the trust including balance sheets and profit and loss report
• most recent income tax return of the person (and partner)
• Send written request (Q777) using the  Request Documents Q777  guided procedure
• Record details on a  DOC
• In  Customer First,  create a manual review  on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason:  FTB
• Review Reason:  MIT (Maintenance Income Follow-Up)
• Due Date:
  14 days from date Q777 is sent (allow extra time for mail delivery)
  21 days from date Q777 is sent for remote or overseas customers
• Source:  INT
• Date of Receipt:  today's date
• Notes:  'Q777 issued xx/xx/xxxx to request trust documents. Check response and return to OB 277-51100000 for action.'
• Keywords:  MATREV
• Workgroup:  leave blank
• Position:  leave blank
• Transfer To Region:  leave blank
• The review will mature on the  Due Date  coded in the RVR activity. Workload Management will allocate the review for manual action

If the customer did not give the details when the review is due:

• call the customer to find out when the documents are available. In  Customer First,  create another manual review  on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason:  FTB
• Review Reason:  MIT (Maintenance Income Follow-Up)
• Due Date:  date customer states documents will be available
• Source:  INT
• Date of Receipt:  today's date
• Notes:  'Q777 not returned by due date. Customer states documents will be available xx/xx/xxxx. Check response and return to OB 277-51100000 for action.'
• Keywords:  MATREV
• Workgroup:  leave blank
• Position:  leave blank
• Transfer To Region:  leave blank
• the review will mature on the  Due Date  coded in the RVR activity. Workload Management will allocate the review for manual action
• send second request,  or
• (as a last resort)  cancel customer's FTB

When the customer gives the details, to assess:

• maintenance income,  go to Step 8
• assess ordinary income,  go to Step 7

For details about assessing income from trusts and to refer the case to a Complex Assessment Officer (CAO). See  Income and assets from business structures.

If the customer or partner get income:

• invite customer to  revise estimate for family assistance payments  including taxable income from trust
• for income support customers, assess and record income and assets from trust

If the FTB child gets income:

• check if the FTB child income limit applies to the child and if their income for the financial year is under the limit. See  FTB child income
• procedure ends here

To record the amount received as private child support, see  Recording private maintenance income on Centrelink systems.

If case is complex, see  Identifying and making suitable referrals to the Complex Assessment Officer (CAO).