Donate Child Support Calculator
Skip navigation

Tax time

Add Topic

At what stage does csa take tax returns. We will owe by July $600 to CSA in late payments and am wondering if they have the power to take this amount out of any tax return we may get?

Hi again, I just have a general query.  We will owe by July $600 to Csa in late payments and am wondering if they have the power to take this amount out of any tax return we may get?  There are no late payment penalties that have been incurred as we have kept up to date until the last 3 months.  Thank you in advance.

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.
IF you are entitle to Any Tax Refund,  ATO  will first advise/forward the refund to CSA, and if you owe any money to CSA then CSA will retain the Tax Refund as contibution to you outstanding debt.   

tax time

bugsiboy said
IF you are entitle to Any Tax Refund,  ATO  will first advise/forward the refund to CSA, and if you owe any money to CSA then CSA will retain the Tax Refund as contibution to you outstanding debt.

Thank you for your quick response.
If my understanding is correct (?) csa does not act on a debt (that is; enforce late payment penalties etc…) unless it is $1000 or over (this from phone conversation with csa officer) so for say $600 would they register it as a debt for ato purposes ?  What I am asking is would csa flag this amount if a refund from ato was sent to them?

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.
 if you owe money to CSA, no matter how much  ($1, $100 or $1000), and you are entitled a Tax Refund,  then basically, your refund will be used to pay off (or part of) the CSA Debt.   So,  if you owe CSA (say) $500 and expect a tax refund of $501,  then CSA will take the $500 and pass on the $1 to you.
CSA will take the payment from tax return even if you are on a wage deduction because it shows as arrears on the computer
ie pay roll has already deducted the payment from your wages but don't submit the money till the due date
We had this happen every year because payroll deducted F/N and paid Monthly…
There are some amounts that make up the tax refund that C$A cannot take. Sorry that I do not have a reference for you but I was given this advice in writing from CSA and they did not give specific details. Perhaps a further chat with them will reveal these amounts.

I would suspect

That C$A cannot touch FTB that is to be paid as part of a Tax return. I am not certain of that.

For me - Shared Parenting is a Reality - Maybe it can be for you too!
Not quite sure what you owe. Is it child support or late payment penalties.  If it is late payment penalties you can ask them to remit them if you have a reason for paying late.  They can and probably will take your refund if you owe either child support or late payment penalties
Here's what the CSA Guide says about Collection from FTB :-

The CSA Guide - 5.2.6: Collection from Family Tax Benefit (extract) said

Legislative references

Sections 17, 30 and 72AB Child Support (Registration and Collection) Act 1988

Explanation

A payer who provides between 35% - 65% of the care for a child for whom they pay child support can be paid Family Tax Benefit (FTB) for that child. The payer can choose to receive their FTB entitlement as periodic payments or after they lodge their tax return.

If the payer has a child support debt for a child for whom they will receive FTB, CSA can give notice to the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs (the Secretary) requiring deductions from that FTB entitlement. This may reduce the payer's FTB entitlement to nil. Any amounts deducted are sent to CSA and applied to the payer's child support debt.

Deductions from FTB are available only to collect child support debts owed by a payer for a child for whom they will receive FTB. The Secretary will not deduct any amounts from the FTB payable to a payer for any other child. Nor can CSA recover child support debts (or child support related debts) of the following types from a payers Family Tax Benefit:

    * spousal maintenance;
    * overseas maintenance liabilities;
    * an amount repayable by a former payee under a registered parentage overpayment order;
    * payee overpayments;
    * estimate or late payment penalties; or
    * fines or costs ordered by a court.

Before CSA can issue a notice requiring the Secretary to make deductions from the payers FTB to recover a child support debt for a child, the due date for payment must have passed and there must be amounts overdue. A notice can have an ongoing effect on periodic FTB entitlements until the child support debt is met or the notice is withdrawn.

Here's the link to this section of the guide :-

The CSA Guide - 5.2.6: Collection from Family Tax Benefit
1 guest and 0 members have just viewed this.

Recent Tweets