3.1.6.30 Court Orders & Registered Agreements

Collection methods for Stage 1 CSS applicants/recipients

The following table outlines the collection methods for Stage 1 applicants/recipients.

Explanation: For both CSA collection and private collection of an order/agreement, applicants/recipients lodge the relevant CSA form through FAO so that the customer service centre is aware what action has been taken. Non-FAO applicants/recipients may also obtain and lodge the form through FAO.

Applicants/recipients already receiving payment under the order/agreement before it is lodged with the CSA must declare the amount to FAO. If the order/agreement provides for:

• capitalised maintenance (1.1.M.10) and/or lump sum child support (1.1.C.20) it should be recorded as maintenance income unless the order/agreement has not been complied with, or
• non-cash maintenance (1.1.M.10) should be recorded if the payer (1.1.P.72) is complying.

If not, the applicant/recipient should be referred to Legal Aid to seek a variation to the order/agreement to arrange for cash maintenance and collection by the CSA.

Policy reference: FA Guide 3.1.6.80 Changing the Method of Collection, 3.1.7.13 Capitalised Maintenance

Non-enforcement of the order/agreement during periods of low income

Stage 1 court orders or registered agreements can only be varied, suspended or revived by the court. From 29 May 1995, the CSA may end enforcement of the order or agreement during periods of low income. This can be done if the payer satisfies 2 criteria:

• the payer must be receiving a social security pension (1.1.S.90) or benefit (1.1.S.60), and
• the payer must satisfy the prescribed income test.

To satisfy the test, the payer's pension or benefit plus any ordinary income cannot be more than the basic single rate of pension. Non-taxable allowances such as RA, PhA, or RAA are not included in the calculation.

The CSA determines the date from which non-enforcement commences. The date can be the later of either the date:

• the social security pension or benefit commenced, or
• on which the last maintenance payment was made to the payee (1.1.P.71) (see explanation).

Explanation: This ensures that the payee does not incur an overpayment.

Non-enforcement of the order/agreement due to change of custody

The CSA may end the enforcement of a Stage 1 court order/registered agreement during periods when the payee of the child stated in the order or agreement is not the main provider of ongoing daily care. Both parties must agree and both parties must sign the appropriate form requesting the CSA to end enforcement. The order may be enforced again at the request of only one of the parties.

The CSA is not required to verify this change of care with FAO. However, the applicant/recipient is still required to notify FAO of any change of circumstances as required by the FAAct.

The non-enforcement period continues until the child returns to the ongoing care of the applicant/recipient. The applicant/recipient should advise both the CSA and FAO when this happens. Only one party needs to advise the CSA for collection to recommence.

Stage 2 of the CSS

Where an applicant for FTB already has a child support assessment or an informal agreement (1.1.M.15) which is being privately collected (1.1.P.130), the FAO must check that the amount of child support being received is at least as much as the CSA assessment amount. If an applicant for FTB already has a registered agreement then the FAO must accept that agreement as reasonable maintenance action (1.1.M.10).

Act reference: Child Support (Assessment) Act 1989

Policy reference: FA Guide 3.1.5.30 Taking Reasonable Maintenance Action

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Last reviewed: 1 December 2008