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CSA - Dispute over care time

In January, ex agreed to csa on the 52 nights and half the travel costs. She moved the kids 700km away 5 years ago. Hubby then transferred outstanding CS and after she received this, she changed the care to 0 again. Csa simply accepts this.

Our Story:

Hubby's ex applied for csa collect in October, requesting backdating of CS for 3 months, since she apparently has been underpaid. She gave csa an incorrect level of care (well in fact, she did for the last 3 years but we had a mutual private CS agreement) and started withholding the children over Christmas to actually reduce the care to such level. We have proof on regular care and for paying agreed extras for those 3 months, but csa is chasing us for arrears. We will take this to the STAT. I understand they do not have the power to do anything in regards to the drop of care after October, since she didn't allow us to see them. We already have arranged mediation and are going to see a lawyer, since my knowledge, even though I am studying in this field, is stil very limited in regards to family law.

In January, ex agreed to csa on the 52 nights and half the travel costs. She moved the kids 700km away 5 years ago. Hubby then transferred outstanding CS and after she received this, she changed the care to 0 again. Csa simply accepts this. Csa was even prepared to cut such deal for her. She requested employer collect for 52 nights of access. Csa agreed. Hubby said no to employer collect. We knew, as soon that would have been arranged, she would have changed the care level. She doesn't communicate in regards to the kids, doesn't inform dh about major events in their lives and doesn't support his relationship with them anymore it seems. She also quit her job in September, we did a CoA on her CTE.

1. I am surprised on how csa operates, cutting such deals and even though the care was agreed by the payee, they changed as soon as the payee disagreed again. Now they chase us for arrears which dont even exist. Is there anything we can do? We can't afford the arrears to get garnished in one hit and it bugs us getting ripped off. Can they take the arrears even though we appealed to the STAT?

2. CoA. We believe that the ex just bought a house and we are looking into that, on the other hand she is crying poor. We also believe that she is setting something up or works cash in hand. Does this have any affect on the CoA?

3. How long until csa collects from the employer? We paid the majority already.

4. Any informations on stay orders?
1- They will keep collecting whilst they can even whilst you are appealing to the SSAT.

2. The more HARD evidence you have the better. C$A will not take any verbal evidence you give seriously as they only really advocate for the payee. Rarely do they help the payer. They get a pay bonus if they can collect more child support. A title search would be hard to dispute. Same type of evidence for cash in hand work. Whilst you are at it you can report her to the Centrelink fraud unit.

3. Best you just let C$A collect as it is hard to get a refund for an overpayment. There's no point you making their job easy. Let them be in control of collecting as that is what they get paid to do.

4. To get a stay order you will need to go to a court. Others on here may assist with this answer.

I think you need to sort the care issues out. You can take disputes of care to the SSAT and if not happy wth the result you can appeal these decisions to the Administrative Appeals Tribunal not the court - I have done this successfully and recommend this
process.

I also recommend you use Family Assistance to set the care percentages as they will tell C$A their decision. They are a lot more friendly and easier to work with than the C$A.

However it appears that you will need court orders on care to sort out the problem properly.
We are not entitled to any benefits. How do we find out if she receives centerlink payments and how do we report this? I am not quit sure how this works. What is family assistance?
We were hoping not to pay those ridiculous amounts based on her lies :-/
You can apply for Government family support benefits through Family Assistance and in the process they will ask the ex what her care of the children is. They will then make a decision re the care and inform all parties including C$A.

To report someone to Centrelink, call them and provide details. They will investigate if the person is on parenting payment.
Will they even check if you have regular care and are above a certain wage? They will ask the ex? The ex will claim that she has them 100 percent. She withheld them starting end of October.

SM10, did you previously have court orders? If you did the you should have gone for a contravention which doesn't require mediation.

Basically you have 14 weeks (if I recall correctly) to take reasonable action to have the care. (nothing other than court is considered by the CSA to be reasonable). So I guess that's why you have now been hit with the reduction.

Here's a link to what I think is the relevant section of the guide: The CSA Guide - 2.2.8: Interim determinations after 1 July 2010
Also consider:

Interim period

A decision to base a care determination on the agreed, planned or ordered care will have effect for a limited period. Generally, this will be a period of 14 weeks from the day the care ceased to be in accordance with the agreement, plan or order.

In special circumstances, the interim period may be extended to up to 26 weeks. What will be considered special circumstances will depend on the facts of the case, but will include circumstances that are out of the ordinary and affect the resolution of the issues relating to care. For example, a parent may have travelled overseas with a child without the consent of the other parent, resulting in delays in mediation and/or court action. Normal delays associated with mediation or the court process will not generally be considered to constitute special circumstances unless there are other factors that make the case unusual.

This sneaky piece of legislation slipped past us and simply appeared in the Bill that went through.

We are receiving a large number of complaints about this particular piece of the legislation that MikeT has brought to attention. On of the real issues is that you cannot get a hearing up inside of 14 weeks in a number of Families courts. The fact is that it appears the CSA have simply found an easy way out to deal with difficult determinations of who has what time. It is far easier to bring in legislation that says basically "Look if you are not taking it to court within 14 weeks we will believe the Payee" and secondly if you are taking it to court we might consider an extension to 26 weeks ONLY if there are special circumstances (which is not clearly defined). A special circumstance that a reasonable person might consider are special is not necessarily special circumstances at the CSA. The simple fact the courts are overloaded and cannot set down a final hearing on an application regarding contravention of orders in respect to time is not necessarily a special circumstance.

See Normal delays associated with mediation or the court process will not generally be considered to constitute special circumstances
 

If you asked me for a list of what are special circumstances I would be hard pressed to give you examples as you need to find reasons that are far beyond what a reasonable person would consider special circumstances. MikeT may have a better answer for you than I. Please review the comments from Fairgo and do contact Centrelink to assess time based on what orders you have and see where that goes. Present the "deal" as you have it and I assume you have a written agreement for the 52 nights and half travel costs.

Your employer will automatically start deductions when advised by the CSA. It is usually fairly quickly.

Executive Secretary - Shared Parenting Council of Australia
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The problem is that we have no orders and no written agreement, just oral. It worked up until the end of October. I looked into that, mediation is considered reasonable action, which we started in November, we will soon have the first joint session. Csa always had noted 0 nights, since the ex told them that and they told us every year, when we tried to adjust it, that it's up to her, not us. We didn't look into it, since we have had a mutual agreement of x amount plus travel and private health. She claimed, that we only paid x amount and that we need to backpay her. She is obviously lying. We showed csa proof of the care level up until October. They said that they can't backdate it, but they can backdate the back payment for her for those 3 months…? Its a bit silly. She called and simply said that we won't see the kids until day x, which reduced the care, regardless of our proof. Csa is aware that she withheld them and stil was happy to cut a inapropriate deal for her, rather then letting us continue with the appeals process. The 14 weeks ware not over (next week) and we are in the middle of mediation. I don't think that there is anything I can do in regards to interim care arrangements, since she won't allow it.

I am worried that they take out CS plus arrears in one hit, then we can't afford to move, which we have to in march and are basically on the street. It did recently cost me a lot of money to go overseas to visit my grandmother (for the last time is my guess, since she is unwell), uni wants to be paid, so it's quit hard ATM.The last thing we need is them taking out a lump sum of almost 4k. (50/50 CS and arrears for those 3 month plus she dopple dipped for 14 days). Also hoping for this CoA to come through. We will insist on backpayment from her side. She reduced her wage by more then half and as we believe just bought a house.
If your hubby has money in a bank account in only his name, you should shift it all into a joint account right away and close the account that is in his name only.

Then YOU get to decide how much money comes out of that account to the CSA as they cannot take funds from a joint account like they can from an account in his name only.

This will prevent the CSA from taking large chunks of cash from you and preventing you from carrying on with your plans…

Don't delay - you are at war with the CS and you need to fortify your position against their various methods of attack,
If you are still discussing details of your case on the phone, stop that immediately and demand that all contact from them be in writing - no exceptions.
If they then ring you to discuss the case, get the officer's name and a receipt number for the call and ask that they put their query in writing - then hang up.
Then immediately call the CSA complaints line and lodge a formal complaint against the officer for deciding to disrespect your request for all conact to be in writing.

Last edit: by seriously

But can't they just deduct a large sum from the employer?
No - they must leave enough for you to live on - I just can't locate the information but they are limited in what they can garnish from wages.

Mike T will likely have this info at his fingertips

If you have sufficient funds in your hubby's account to cover the arrears, CSA can use a Section 72A order to take the lot in one go.

Then if it turns out that you have overpaid, they will say there is nothing they can do to recover the funds for you.

Protect your savings by getting them into a joint account - do it now!
Now how do they decide on what is enough? If they leave the self support ammount only, than we can't even pay rent. Hubby has a hecs debt and debt from his divorce on top of this, that's double the self support amount (incl rent). We paid everything apart the "arrears" since they are incorrect and we couldn't afford it before Xmas and now, due to expenses.
As called :)

If there is no S72A Notice then the Protected Earnings Amount (PEA) applies. For 2012 this is $329.55 per week, $659.10 for fortnight or $1432.95 per month. It is the employers responsibility to ensure that deductions do not exceed PEA. Obviously a section S72A can be of critical importance so here's what the CSA guide says:

The CSA Guide -5.2.9: Collection from third parties said
Version 2.4, Last updated 5 April 2011 9:42am
Context

CSA can issue a notice to someone who owes money to a child support debtor requiring that the money be paid to CSA in satisfaction of child support related debts (section 72A). This power is separate from CSAs power to intercept tax refunds, deduct amounts from a social security entitlement or deduct amounts from a veterans pension or allowance.

Additionally, where a person within Australia is controlling money on a child support debtors behalf while the child support debtor is overseas, CSA may issue a notice requiring the money be paid to CSA (section 72B).
Legislative references

    Sections 72A and 72B Child Support (Registration and Collection) Act 1988
    Regulations 14 to 16 Child Support (Registration and Collection) Regulations 1988
    Section 85 Defence Forces Retirement Benefit Act 1948
    Section 129 Defence Forces Retirement and Death Benefits Act 1973
    Section 45 Military Superannuation and Benefits Act 1991
    Section 238 Social Security (Administration) Act 1999
    Section 118 Superannuation Act 1976
    Section 41 Superannuation Act 1990
    Section 10 Superannuation Industry (Supervision) Act 1993
    Section 125 Veteran Entitlements Act 1986

Explanation

CSA can issue a notice to any person who holds money for, or on behalf of, a child support debtor, or to any person who may hold money for the child support debtor in the future. A notice issued to a person under section 72A requires that person to pay the money to CSA. Notices are commonly used to collect money held in bank accounts and for the proceeds of property settlements (i.e. house sale) which become due to the child support debtor. The maximum notified deduction total is an amount specified in a notice under section 72A(1) that does not exceed the child support debt of the child support debtor to whom the notice relates.

A section 72A notice is similar to a garnishee order obtained from a court by a creditor who has obtained judgment against a debtor. However, CSA does not need the approval of a court or to have obtained judgment prior to issuing a notice under section 72A. Notices under section 72A should not be issued on a speculative or fishing basis.

A section 72A notice will require a third party to pay to CSA, until the debt is satisfied:

    an amount equal to the maximum notified deduction total (if a person holds more than the amount specified in the notice (section 72A(1)(e))
    the amount of money being held (if the person holds an amount equal to, or less than, the maximum notified deduction total specified in the notice (section 72A(1)(f))
    specified ongoing payments (if the person becomes liable, from time to time, to make payments to the debtor and the notice specifies an amount until the maximum notified deduction total is satisfied (section 72A(1)(g)). This allows CSA to collect from contractors who make payments to a subcontractor in a manner similar to a garnishee order made by a court.

    Which debts can be recovered?
    What funds can be attached?
    Effect of compliance or non-compliance
    Requirements of a section 72A notice
    Service of notices
    Payment made by child support debtor
    Collection within Australia where child support debtor is outside Australia

Which debts can be recovered?

CSA can issue a section 72A notice to recover:

    an overdue child support debt, including an amount equivalent to any child support that CSA has already paid to the receiving parent from consolidated revenue because it was expected to have been remitted by the child support debtors employer, but was not in fact deducted from the child support debtors salary; (i.e. a top-up debt);
    arrears of child support that CSA has assessed for a prior period, but which are payable in the future;
    a child support debtors late payment penalties;
    a child support debtors penalty for underestimating adjusted taxable income (estimate penalty);
    an employers late payment penalties;
    an employers penalty for failure to make a deduction;
    court-ordered costs payable to the Commonwealth or CSA in relation to proceedings to collect child support debts or a child support related debt from child support debtors;
    court-ordered costs or other amounts payable to the Commonwealth or CSA in relation to an offence committed by the child support debtor under the Acts;
    a parentage overpayment order which CSA has registered for collection as a child support debt.

CSA can also use a section 72A notice to recover any child support due but not yet payable, however, it will only do so in special circumstances.

A section 72A notice cannot be used to recover other types of debts, such as:

    a receiving parents penalty for underestimating adjusted taxable income (estimate penalty);
    a receiving parents child support overpayment (other than a parentage overpayment order);
    amounts of child support that may become due and payable in the future;
    employer penalties for unexplained remittances.

What funds can be attached?

A notice under section 72A is only effective where funds can be identified as owed to a child support debtor and there is nothing that prevents the operation of the notice.

Is a notice effective against a joint bank account?

A notice under section 72A cannot be effective against a joint bank account because it is not possible to identify any portion as belonging solely to one owner (DFC of T v Westpac Savings Bank Ltd 87 ATC 4346).

Is a notice effective in relation to partnership funds?

Funds held by a partnership are held jointly by the members of the partnership. However, it is possible to serve a section 72A notice on a partner in relation to any distribution that they may make to the other partner/debtor.

Is a notice effective against a company where the child support debtor is a director/shareholder?

If a child support debtor is a director or a shareholder of a company, a section 72A notice can be issued on the company for a percentage of any distribution made to the child support debtor. When the company distributes a dividend to the child support debtor (where the child support debtor is a shareholder) or directors fees (where the child support debtor is a director) the notice should be complied with.

Is a notice effective against a company bank account?

Funds held in a bank account that is in the name of a company are held by the company as a legal person, not by the child support debtor. The funds in such an account cannot be said to be payable to the child support debtor, even if the child support debtor is the sole signatory to the account or the sole director or shareholder of the company.

Is a notice effective against an account held in trust?

If a child support debtor is a trustee of funds held in a bank account, a section 72A notice to the bank in relation to those funds will not be effective. A trustee holds the trust funds for the benefit of others and does not own the funds for their own use.

CSA can issue a section 72A notice to a trustee who holds money in trust for a child support debtor. That notice will only be effective when the trust deed authorises the trustee to make a distribution or payment to the child support debtor from the trust funds.

Is a notice immediately effective against funds in a term deposit?

CSA can require payment from a term deposit upon receipt of a section 72A notice where the terms and conditions of the term deposit allow for the customer to be paid the monies prior to the maturity date (i.e., they are repayable upon demand) (section 72A(12) and Macquarie Health Corp Ltd v Commissioner of Taxation [1999] FCA 1819).

Is a notice effective against superannuation funds?

A section 72A notice may not be effective against pensions or lump sums paid by a superannuation fund or in relation to funds held. It will depend on the particular fund and the status of the money held.

Does the fund have a specific exemption from compliance?

Some superannuation funds were established by legislation which provides a specific exemption from compliance with garnishee notices.

Examples

    Section 118 of the Superannuation Act 1976 and section 41 of the Superannuation Act 1990 specifically preclude garnishee action on any type of pension or other benefit under those Acts (CSS and PSS pensions paid to former Commonwealth Public Servants).
    Section 85 of the Defence Forces Retirement Benefit Act 1948, section 129 of the Defence Forces Retirement and Death Benefits Act 1973 and section 45 of the Military Superannuation and Benefits Act 1991 will not allow section 72A notices to be attached to benefits payable by the Defence Forces Retirement and Death Benefits Authority or the Military Superannuation and Benefits Board.


Funds that are not specifically exempt from compliance

A superannuation fund holds superannuation money on trust for the benefit of its members (i.e. the contributors) (section 10, Superannuation Industry (Supervision) Act 1993).

As a general rule a superannuation fund will be required to comply with a section 72A notice where the member has access to the funds (i.e. when the funds are due and payable to the child support debtor).

Are the benefits payable to the member?

The rules which apply to all superannuation funds when determining whether or not the benefits are actually payable to the member are as follows:
Unrestricted non-preserved amounts

If a member has access to unrestricted non-preserved amounts (e.g. where they have an option of receiving an immediate payment or rolling funds over) these funds are due and payable. Therefore, a section 72A notice will be effective against any superannuation funds held as an unrestricted non-preserved amount. It is not necessary for the contributor to actually make a request for payment or decide whether to roll over the funds in order for the section 72A notice to be effective (subsection 72A(12)).

Other amounts

Where the funds are not available (preserved amounts) or other conditions are not met (restricted non-preserved amounts), a section 72A notice will not be effective. In such cases, section 72A(12) cannot overcome the legal requirement for the contributor to qualify to access those funds (for example by age or retirement). The notice will not be effective unless and until the debtor-members benefits are payable to the debtor under the rules of the fund (e.g. by retirement).
Deceased member benefits

A superannuation fund holds superannuation money on trust for the benefit of its members (the beneficiary) (section 10 Superannuation Industry (Supervision) Act 1993). If the member dies, the superannuation fund no longer holds the money on trust for the member. If the money is preserved it is usually paid as a death benefit to the members dependants or legal personal representative, in accordance with superannuation law and the superannuation trust deed.

If the superannuation trustee decides to pay the death benefit to the deceased persons dependants, the beneficial ownership of the money passes to the dependants from the time of the members death (even though the decision about the person(s) to whom the money will be paid may not be made until after this date). The superannuation fund will no longer hold money for, or on account of, a child support debtor and a section 72A notice will not be effective.

If the superannuation trustee decides to pay the death benefit to the members legal personal representative, the superannuation becomes an asset of the deceased persons estate from the time of the members death (even though the decision about the person(s) to whom the money will be paid may not be made until after this date). The superannuation fund will no longer be holding money for, or on account of, a child support debtor; the money is not due and payable to the child support debtor and a section 72A notice will not be effective. However, CSA will seek to recover any outstanding debt from the persons estate.

Employer withholding of superannuation funds

If a section 72A notice can be effective against a pension paid by a superannuation fund, it may be possible to apply employer withholding as an alternative. See Chapter 5.2.3 for details.

What if a solicitor claims they have a lien over the funds?

CSA can issue a section 72A notice to a solicitor for funds held in trust for a child support debtor who is that solicitors client. The notice will not be effective against any portion of the funds that are subject to a solicitors lien for work performed and disbursements paid on behalf of their client. A solicitors lien creates a charge over the funds once the solicitor has delivered their bill of costs to the client (or if the client objects to the bill, when the costs are taxed) (Gilshenan & Luton v FC of T, 83 ATC 4758).

What if a real estate agent is holding funds from which fees are to be deducted?

CSA can issue a section 72A notice to a real estate agent for funds held as a deposit against the sale of a property by the child support debtor.

The deposit remains the property of the purchaser until the sale of the property is finalised. Once the sale of the property is finalised, the notice will not be effective against any portion of the funds that are to be retained by the real estate agent for payment of fees due to the real estate agent under contractual arrangements existing between the agent and the child support debtor (as vendor of the property). The agent will only be required to remit to CSA any amount that would ordinarily be transferred to the child support debtor.

Can a notice be issued against a Court if it holds money for the child support debtor?

CSA cannot issue a section 72A notice to a court, as a court is not a person (Clyne v DFC of T, 83 ATC 4007). CSA cannot therefore require a court to pay any amounts lodged by the child support debtor for bail moneys, etc.

Can CSA obtain money from Veterans Affairs pensions?

The Department of Veterans Affairs cannot comply with a section 72A notice requiring it to deduct an amount from a persons Veterans Affairs pensions, as these pensions are absolutely inalienable (Sub-section 125(1) Veteran Entitlements Act 1986). However, a written notice may issue pursuant to section 72AC which specifically provides for deductions from veterans pensions and allowances.

Can a notice be issued to Centrelink?

The Social Security Act 1991 prevents Centrelink from withholding their customers entitlement to a pension, allowance or benefit paid under that Act for the purposes of child support except where section 72AA applies.

However, section 72A notices may be served on Centrelink requiring deductions to be made from Abstudy payments. CSA has undertaken to limit deductions from Abstudy payments to the amount prescribed for the purposes of section 72AA.

Notices issued against inalienable benefits in a bank account

Once inalienable benefits (such as Department of Veterans Affairs pensions or Centrelink pensions, benefits or allowances) are deposited in an account the funds cease to be inalienable. Therefore a section 72A notice issued to a financial institution that holds money on account of a child support debtor will be effective, provided those amounts are due and payable to the child support debtor, regardless of the original source of those funds.

Can CSA intercept payments to taxi drivers?
CSA can issue a section 72A notice to a taxi owner requiring them to deduct amounts from payments they make to a contracted or employed driver. However, a section 72A notice will not be effective against a taxi cooperative from which a taxi driver hires their cab. A cooperative does not usually pay wages, fees or contract payments to a driver.


Can CSA issue a notice in relation to Commonwealth Inscribed Stock or Bearer Securities?
Section 72A notices should not be issued to the Registrar of Inscribed Stock as the registrar is not a person.

Can a notice be issued in relation to travellers cheques, foreign currency, shares or gold?
A section 72A notice cannot be effective against a third party who holds travellers cheques, foreign currency, shares or gold for a child support debtor. This is because these things are commodities and are not money.

Can CSA issue a notice against Health Insurance Commission payments to a doctor?
CSA is legally able to serve notices to the Health Insurance Commission requiring it to deduct amounts from pay doctor cheques but will not do so. Pay doctor cheques are payments made under section 20(2) of the Health Insurance Act 1973 where the practitioner has billed the patient and the patient is entitled to receive a cheque for the amount of Medicare benefit which is drawn in favour of the practitioner who has rendered the service. This is due to the administrative problems involved and the anticipated adverse effects on the patients whose doctors may have had payment stopped on their cheques.

What if a property is mortgaged?
A section 72A notice creates a fixed charge on all money due from the third party to the child support debtor to the extent of the liability. However, the charge created by the service of a notice does not rank ahead of any existing fixed charges, e.g. mortgages.

A notice will rank ahead of floating charges which have not yet crystallised at the time the notices were served (Tricontinental Corporation Limited and Anor. v FCT, 87 ATC 4454). A floating charge is a security over a class of assets which change from time to time until they are fixed by an event or act such as liquidation.

A section 72A notice issued in respect of the sale of property that is subject to an existing mortgage will not be effective against that part of the purchase price necessary to pay out the mortgage.

What if the child support debtor is bankrupt?
A section 72A notice issued in respect of money payable by a third party to a bankrupt person will only be effective if the amount claimed does not come within the scope of the bankrupts estate managed by the trustee. For more information on the effect of bankruptcy, see Chapter 5.4.5 Bankruptcy.

Is a notice effective against a life insurance policy?

Section 205 of the Life Insurance Act 1995 applies upon the death of an insured person. It protects money that would be payable under a life insurance policy to that persons estate preventing it from being applied to pay the insured persons debts. Without the express direction of the deceased person any order, judgment, or process of any court, executor or administrator, etc. is ineffective against the funds.

In any event, the beneficiary of a life insurance policy is often not the insured persons estate, but a nominated person, e.g. the persons spouse. When the insured person dies the funds are payable directly to the nominated person.

Effect of compliance or non-compliance

Any person who pays money to CSA as required by a notice under section 72A is taken to be acting under the authority of the child support debtor and is indemnified for any moneys paid to CSA (section 72A(9)).

A person who refuses or fails to comply with a notice without reasonable excuse is guilty of an offence (section 72A(2)) and can be prosecuted. A fine up to $1,000 can be imposed on prosecution. Refuses or fails simply means that a prosecution can commence if the person did not comply with the requirement after being served (or deemed to be served in the case of postal service). The offence occurs regardless of the intention of the person.

If a person is convicted of an offence under section 72A(2), the court may also order the person convicted to pay the amount which the person refused or failed to pay under the notice (section 72A(8)). This has the dual purpose of encouraging compliance and protecting the interests of the receiving parent entitled to child support.

CSA will credit to the child support debtors child support account any amount it receives from a third party in restitution for that third partys failure to comply with a section 72A notice. It will do so regardless of whether the third party makes this payment voluntarily, or in accordance with a court order. CSA will disburse to the receiving parent any amount of that restitution payment that represents unpaid child support (but not late payment penalties or court costs) as if the amount were paid by the child support debtor.

Requirements of a section 72A notice

The formal requirements of a section 72A notice are outlined in section 72A(3). The notice must be in writing, and specify a day by which the payment is to be made. The due date cannot be a date before the person holds money for a child support debtor. This is a common sense limitation on the power although CSA can issue a notice to a person before they hold money for the child support debtor, it cannot require the person to pay it to CSA before they actually hold it.

A notice is valid even if, at the time it is issued, no funds are held by the third party.

Example

CSA may be aware that a payment is expected to be deposited into a particular bank account. A notice issued to the bank should specify a date by which the payment must be made (usually within 7 days of the money becoming due to the debtor or held for the debtor). The notice is valid until this day, even though the bank cannot comply with the notice when it is issued because the account is empty. The bank is under an obligation to monitor that account until the date for payment arrives; any deposits to the account before that date are subject to the payment order in the notice, up to a maximum notified deduction total stated in the notice.


If CSA wants to extend the date by which payment is to be made, the old notice should be withdrawn in writing and a new notice issued showing the new date, and an update of the amount payable if necessary.

A section 72A notice for wages or contract payments must not require deductions to the extent that they prevent the child support debtor from meeting reasonable living expenses (Edelsten v Wilcox 88 ATC 4484). CSA must consider the whole of the debtors financial position. The debtor must be allowed ordinary living expenses unless there are extraordinary circumstances.

CSA must give a copy of a section 72A notice to the child support debtor (section 72A(5)). CSA will do this by posting a copy of the notice to the child support debtor at their last known address (section 72A(6)).


Service of notices

CSA must serve the notice on the third party. The requirements for service are discussed in Chapter 6.7 Service of documents.
Payment made by child support debtor

If a child support debtor pays their child support debt after CSA serves a section 72A notice upon a person, CSA must give immediate written notice of the payment to the person it served with the notice (section 72A(10)).

Collection within Australia where child support debtor is outside Australia

CSA can serve a section 72A notice upon a person within Australia who controls money for a child support debtor outside Australia. However, section 72A notices are restricted in their operation and only apply to amounts already due to the CSA.

CSA also can issue a notice under section 72B upon a person within Australia who controls money for a child support debtor outside Australia. However, a section 72B notice can be used to collect current amounts of child support, before they become overdue.

A section 72B notice can be used when the child support debtor is not physically present in Australia (s.72B(1)(a)) and:

    derives income, profit or capital gains from a source in Australia (s.72B(1)(b)(i)); or
    is a shareholder, debenture holder or depositor in a company that derives income, profit or capital gains from a source in Australia (s.72B(1)(b)(ii)).

If these criteria apply, CSA can serve a section 72B notice upon any third person who receives, controls or disposes of any of the child support debtors money (s.72B©).

A section 72B notice is not effective against money derived from certain natural resource payments or royalty payments (s.72B(4)(b)).

Like a section 72A notice, a section 72B notice must specify the amount the person is required to retain and send to CSA; the amount of the debt, and the due date for payment.
 
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