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Changes to prescribed payments

The changes coming in July state that the payer must have less than 14% care of children to credit the 30% payment for fees etc.

In the old system there is nothing stating the percentage of care required for these payments.
I rang csa to find out what happens in July if I make a huge payment for something now and then want to continue taking out the 30% past July 2008
they said once hits July 2008 can no longer take out the 30% regardless of when it commenced. (although she didnt know about the change until I told her and directed her to the correct areas.)


Last year when I complained that my ex was working and I wanted a change of assessment to reflect her income.
I was told that if I got it and the period went past the July change, my assessment would continue instead of changing to the new (assumed) lower amount.

I think someone is telling porkys cause I dont see how both could be right.

Does this sound right to anybody else? Should I get something in writing.
Always get things in writing. If you get no joy from the first phone jockey, ask the speak to their supervisor.

If you don't already have a case manager, try to get one who knows what they're talking about and stick with them.

Junior Executive of SRL-Resources

Executive Member of SRL-Resources, the Family Law People on this site (Look for the Avatars). Be mindful what you post in public areas. 
CCC said
Last year when I complained that my ex was working and I wanted a change of assessment to reflect her income.
I was told that if I got it and the period went past the July change, my assessment would continue instead of changing to the new (assumed) lower amount.

I think someone is telling porkys cause I dont see how both could be right.

Does this sound right to anybody else? Should I get something in writing.
 
Hey CCC

I don't know about the other bit, but this bit is probably half right.

My change of assessment written in August last year was carefully worded so that it could continue beyond the change to the formula in July.  Instead of specifying an annual amount, the change of assessment decision just specified the parts of the formula that would change.

In my case, that meant simply stating the salary to be used.  The salary was to be plugged into the old formula while it lasted, then plugged into the new one when it came into use. 

That approach could well have been taken in your case, so it is true that the change of assessment would continue after July, but it is not true that the actual amount payable would have remained the same after July, because the change of assessment would only have changed the salary to be used in the formula, not the amount payable.

It is a shame that was not made clear to you.  I take it you did not proceed with the change of assessment?



It was made clear to me that I would continue to pay the same amount even after July changeover.

Maybe I was lied to, maybe the CSA person thought this was correct.
I was on the phone for a really long time.
I didnt apply for the change and have been paying on the maximum amount. (for years now)
And probably will for many years to come.
CCC

This is one of the reasons I ask for everything in writing - sometimes the people on the phones do get it badly wrong.

Others on this site have used FOI to get copies of the notes relating to phone calls.

If those notes show that you were given incorrect information, you may have a case for compensation for financial losses because you acted on the information by  not lodging an application.

Could be worth a try, but it sounds like things will improve for you on the new formula anyway.



what is a prescribed payment FGS
With regard to screen notes, you do not need to go through FOI, as they are between yourself and the CSO, you have the right to the notes. Just phone and ask them to be sent. If they say that they cannot send them, then insist that they contact the FOI officer, who will tell them that you have a right to your notes.

A guest said
what is a prescribed payment FGS

The CSA Guide said

Prescribed payments

If you are paying child support, you can make a prescribed payment and receive credit for the payment which will be offset against your ongoing child support payments.

Prescribed payments are:

    * child care costs for the child who is the subject of the child support liability
    * fees charged by a school or preschool for that child
    * amounts payable for uniforms and books prescribed by a school or pre-school for that child
    * fees for essential medical and dental services for that child
    * the payee's share of amounts payable for rent or a security bond for the payee's home
    * the payee's share of amounts payable for utilities, rates or body corporate charges for the payee's home
    * the payee's share of repayments on a loan that financed the payee's home
    * costs to the payee of obtaining and running a motor vehicle, including repairs and standing costs.

Prescribed payments are credited at the rate of 30 per cent of future monthly child support until the full value of the payment is credited, providing the remaining 70 per cent is paid to CSA each month. Call us for more information.

Example of a prescribed payment

Hugh and Anna's daughter, Lianne, lives with her mother and Hugh pays monthly child support of $400. Lianne needed some dental treatment and Hugh paid the $500 bill. CSA accepted that the dental treatment was essential and that the payment could be credited as a prescribed payment.

Hugh must pay 70 per cent of his monthly child support liability i.e. $280 and his payments will then be reduced by $120 per month until he has recouped his outlay of $500.
CCC,
     here's what the guide, with regard to the new legislation says. Having a quick gloss over it, it dosn't appear to be any different. So I can't see why they are trying to say that it can't be, but please read it yourself.

New CSA Guide said
Prescribed non-agency payments

CSA can credit certain payments towards a payer's child support liability regardless of the intention of the parents at the time the payment was made (section 71C), except if:

    * the liability is an overseas maintenance liability (section 71C(6)); and/or
    * the payer has provided child support to the payee in the form of a lump sum payment and the payment will be credited against the amount payable under the liability in relation to the days in the payment period or the initial period. (Refer to Chapter 5.3.3 Crediting Lump Sum Payments)

Credit can be given up to a maximum of 30% of the ongoing liability, provided that the balance of child support is paid as it becomes due and payable and the payer has less than 14% care of any of the children to whom the relevant administrative assessment relates. The balance can be paid in cash or in the form of a non-agency payment credited under s71 or s71A, or from money credited from another source such as a tax refund or payment from a third party.

CSA can only credit amounts paid on or after 1 July 1999. Prescribed payments can only be credited against a child support liability and not a liability for spousal maintenance. Prescribed payments cannot be credited against an overseas maintenance liability.

The types of payments that can be credited in this way are listed or 'prescribed' by regulation (regulation 5D). They are:

    * child care costs for the child who is the subject of the enforceable maintenance liability;
    * fees charged by a school or preschool for that child;
    * amounts payable for uniforms and books prescribed by a school or preschool for that child;
    * fees for essential medical and dental services for that child;
    * the payee's share of amounts payable for the payee's home; and
    * the costs to the payee of obtaining and running a motor vehicle, including repairs and standing costs.

The date of notification of the payment is the trigger for commencing to credit up to 30% towards the current liability. If a payer satisfies the conditions and the amount of the payment is more than 30% of the enforceable maintenance liability in a given month, the payer will be said to have an 'uncredited' amount. This uncredited amount can be applied against the payer's enforceable maintenance liability in a later month provided the conditions for payment are again met.

CSA cannot credit an uncredited amount towards any child support arrears that accumulated prior to the payer notifying CSA of the prescribed payment. An uncredited amount can be applied to arrears that accumulate after the notification, but only when at least 70% of the liability is satisfied by cash or a non-agency payment credited under s71 or s71A.

Example

A payer has a current liability of $100 per month and owes $3000 in arrears.

In August 2006 the payer notifies CSA of a prescribed payment of $2000 made that month, however, no payments were made direct to the payee, or to CSA.

As a result the payer still owes $3000 and has an uncredited amount of $2000.

If the payer pays $75 in cash (or with a non-agency payment under s71 or s71A) by the due date for August 2006 (7 September 2006) then $30 from the $2000 uncredited amount is credited. The arrears of $3000 remain. The uncredited amount is reduced to $1970.

If the payer does not pay for the months of August, September and October but pays $300 for November, $120 of the uncredited amount can be credited (balance is $1880) and the arrears remain at $3000.

If the payer pays $1000 instead of $300 for November the additional amount of $700 would be credited against the original arrears of $3000. The payment in excess of 70% of the liability can be credited against existing arrears.

If a retrospective variation is made to a liability, whether it results in an increase or a decrease, the amount credited from a prescribed payment remains unchanged despite the fact that the percentage of the prescribed payment has changed.

If the payee of a private collect case later applies for registration of the maintenance liability and collection of arrears, CSA will calculate the unpaid amounts by taking into account any credit for prescribed payments that would have been available if the case were registered with CSA for collection.

If CSA is collecting child support through employer withholding, it will adjust the amount deducted to take into account the prescribed payments. If the prescribed payment constitutes 30% of the payer's liability for 2 months or less then the excess cash will be refunded. If the prescribed payment constitutes 30% of the liability for a period greater than 2 months, the payer should be given the option of having their deductions reduced or given a cash refund.

Payees who are in receipt of more than base rate Family Tax Benefit need to be made aware that when a prescribed payment is notified to Centrelink it will be assessed under the maintenance income test by Centrelink even though 'uncredited' for CSA purposes. The whole amount will be assessed on the day that the payment was made to a third party or received by the payee.
A little more respect from the guest is in order.

1 the tone is out of order and
2 take the time to create a userid, if you are that interested in any forum on this site.

Junior Executive of SRL-Resources

Executive Member of SRL-Resources, the Family Law People on this site (Look for the Avatars). Be mindful what you post in public areas. 
THanks Mike T
this is the paragraph

Credit can be given up to a maximum of 30% of the ongoing liability, provided that the balance of child support is paid as it becomes due and payable and the payer has less than 14% care of any of the children to whom the relevant administrative assessment relates. The balance can be paid in cash or in the form of a non-agency payment credited under s71 or s71A, or from money credited from another source such as a tax refund or payment from a third party.

it is near the top.

So I suppose what I really want to know is when the July 2008 changes come in does that void all previous rules ? and any existing things in place ..sorry not very eloquent..
CCC said
So I suppose what I really want to know is when the July 2008 changes come in does that void all previous rules ? and any existing things in place ..sorry not very eloquent.
Uhhm, that's a hard one but generally I think not. Take for instance assessments, they aren't voiding existing one,s they are re-doing the calculations so applying/converting to the new legislation and I doubt very much that they will drop all debts so they will follow on with them (sorry I don't have any debts so can't be sure about that). So I cannot see why they would drop such payments, unless they wish to go against their wish to be fairer and treat parents equally.
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