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New Tax figures

Hello everyone.  My partners ex failed to lodge tax returns prior to 2006/2007.  Csa sent us out a letter in November (after the roles were reversed) stating that for the 2006/2007 financial year she earned $5000 more than they estimated.  As she was the payer at the time it effectively halved the amount she should have been paying in cs.  Two months ago we asked csa to re evaluate that time frame.  They told me they can only go back 18 months from todays date.  They obviously got the tax return figures but failed to let us know of the change and failed to correct the payments required.  Is there any come back with this or do we just have to take it on the chin so to speak?

When 'Life' is hard and things are tough,

and you feel like you've had enough.

Remember always this one thing true,

Someone else depends on YOU.
Overcsa, if the CSA have made a mistake, then I think you can claim compensation from them. However you'd probably have a bit of a hard time as you've let it go since November.
"she earned $5000 more than they estimated.As she was the payer at the time it effectively halved the amount she should have been paying in cs." I don't follow it?  CSA do receive ATO earnings only when a return is lodged. Are you saying you had a letter from CSA two months or earlier notifying you of changes. I would ask your case officer if you have one, to print out all correspondence first just in case they sent letters and you never received them, they can do it when you are there at no cost, who did the new calculations on child support?
    There was an issue with notification last year and it was found that after logging on the internet to recieve mail from CSA they were not obligated to post letters, and since the person had moved and changed email address there was no way of communicating any change of payments.
   

If you don't talk about it, how can anyone help you move forward!
overcsa

Sorry, I am confused.

It is hard with so many people involved to know which 'she' you are referring to.

Was it your partner's former partner who earned more than the estimate?

Was your partner's former partner also the payer at that time?

If so, how could earning more than estimated halve what she should have paid?

Or do you mean the former partner was paying half of what she should have been and the lodging of the tax return led to a doubling of what she should have paid?

Have you asked CSA when they got the correct figures?

Why did you not object when you received the letter in November?



Sorry guys yes it was a bit confusing.  I have checked the dates on the letter and it was April 8 2008 that csa sent out a new formula which included the -now-payees 06/07 taxable income which was $5000 more than estimated for that year when she was the payer.
For example (Partner-Payee, his ex-Payer) for the 06/07 period his ex was required to pay $30 per month based on an estimate she provided as no tax returns had been lodged.  We had informed csa she was working etc so they upped the estimate.  This estimate csa used was still $5000 short of what she earned.  In April we get a letter from csa showing her taxable income for 06/07 but they have not altered any calculations based on the knowledge they must have had prior.  My partner is now the Payer.  Why did they not update the case details based on the new details when they got them?
Sorry for confusion I hope this makes it a bit clearer.

When 'Life' is hard and things are tough,

and you feel like you've had enough.

Remember always this one thing true,

Someone else depends on YOU.
Thanks overcsa, who paid who when is now much clearer.

The details of your dealings with CSA are still a little unclear.

I take it you spoke to CSA after you received the letter in April and asked them to review the previous period.

If that is correct, I suggest you get something in writing straight away, no more phone calls.

What happens next will depend on a number of things, including what percentage of total income the $5000.00 is.

My suggestion is that you make a written request for information on when the agency became aware of the correct income and ask for a reconciliation for the relevant period and payment of any arrears that arise as a result of the incorrect estimate.

Whether you can claim arrears for the whole period rather than just 18 months may depend on when CSA got the information, so ask them to be very clear on that.

This needs to be done in writing and now.



Thanks BriarRose, we did get in contact with csa as soon as the letter arrived (by phone) and was told to lodge a coa under reason 8 on the old forms.  Have done that but seem to be getting a bit of a run around.  Do you think we should still send a written request for info?  Thanks for your help everyone.:) 

When 'Life' is hard and things are tough,

and you feel like you've had enough.

Remember always this one thing true,

Someone else depends on YOU.
Thanks overcsa

In my opinion, you are not so much getting the run around as getting the brush off.

It is not uncommon for the telephone staff to say the first seemingly reasonable thing that comes into their heads without listening to the details.

A Reason 8 change of assessment is generally used to change the current assessment and in rare circumstances may be backdated into a past period, but it is not generally used to alter the assessment for a period which has ended, especially where the payer/payee roles have now reversed.

Change of assessment is not usually used where an estimate is lodged - take a look at The Guide on the CSA website for details of the procedures for lodging and reconciling an estimate.

I suggest writing to them asking when they received the updated tax information and requesting a reconciliation of the assessment for the entire period that an estimate was used.

All the best.

Katie



and ensure the title of your letter says:

Customer Complaint - assessment error

or similar.
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