Child Support collection customer wants to change assessment method: effect on Family Tax Benefit (FTB) 277-51130090

A Family Tax Benefit (FTB) instalment customer has asked Child Support to collect child support from a paying parent and wants to change the method being used to estimate their annual maintenance income from that payer.

The assessment method can be changed at any time for Child Support collect customers. A customer can only be assessed under the disbursement method if they have opted to change to Child Support collect. Child Support needs to notify the department that this has occurred and the information must be available on the system.

The Maint Ent Group Detail (MNGD) screen shows the Assessment Method chosen by the customer:

• The default is the entitlement method. Under the Modified Entitlement Method (MEM), either the entitlement or disbursement method is used, according to which method results in the higher annual maintenance income
• The assessment method may change during the financial year depending on the result of this comparison. The MIT Explanation Details (MNED) screen indicates when the Disbursement Method has been applied due to this process. To find out which method the system has used, go to the Maintenance Income Test (MIT) Explanation Details (MNED) screen via the MIT Explanation Summary (MNEX) screen and view the Calculation Rule

MEM override: if the customer may be disadvantaged if the Disbursement Method were to be used, Child Support Unit staff may override the MEM process to use the Entitlement Method instead. If this has occurred, the MEM Override field on the MIT Assessment Method Group (MNGM) screen will display ‘Y’. This override ceases to apply at the end of the financial year or if the amount using the Entitlement Method becomes higher. To navigate to the MNGM screen to determine whether MEM Override has been applied:

• go to MNGS, 'S'elect Group field and proceed to the MNGD screen
• from the MNGD screen 'S'elect the 'assessment method' field and proceed to MNGM screen

Disbursement Method

Code the customer's choice on the MIT Assessment Method - Group (MNGM) screen:

• Event Date: field, the date the customer wants the change to apply - can be from date paid to + 1 to up to six weeks in the future
• MIT Assessment Method: field, either 'ENT' or 'DIS'
• Source: and DOR: (date of receipt)

Press [Enter] to go to the Main Ent Group Detail (MNGD) screen.

Do not finalise activity yet.

• View the new annual maintenance income assessment on the MNED screen from within the activity. For more information, see Working out annual maintenance income
• If the modified entitlement method comparison has occurred, the disbursement method may still be used. If the entitlement method would better reflect the customer's circumstances, refer the case to the Child Support Unit as they may override the modified entitlement method process so that the entitlement method is used
• View the effect of the new assessment on ongoing FTB Part A on the REXFTBA screen. Any change in rate applies from the later of the event date recorded on the MNGM screen and the date after date paid to

• If child support income increases (e.g. they receive arrears) during the financial year the customer may have been overpaid FTB Part A if a lower annual maintenance income estimate has been used
• If a projected reconciliation overpayment is identified, the customer’s ongoing FTB rate may be reduced by the mandatory continuous adjustment calculation
• At FTB reconciliation, regardless of which assessment method was used during the financial year, actual Child Support disbursements will be used to work out maintenance income for Child Support collect period

Finalise activity on Assessment Results (AR) screen and record details use Fast Note - select Auto text > Families > Updates > MTCE change in assmt method DOV.