The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

8.1.3 Apportionment of debt repayments between payees

Apportionment of payments

Where the Registrar receives a payment from a person who owes:

  • 2 or more child support debts (1.1.C.90) that relate to 2 or more enforceable maintenance liabilities with different payees (1.1.P.30), or
  • 2 or more carer debts (1.1.C.30) (8.1.1) that relate to 2 or more carer liabilities with different payees

and the amount received is less than the sum of those debts, the Registrar must apportion the payment between the payees in proportion to the amount each of them is owed.

Example: Anton makes a payment of $600 for child support payable to Jen and Rita. Jen has no current entitlement but is owed arrears of $1,000. Rita is owed no arrears but has a current entitlement of $500. The total amount Anton owes is $1,500. Jen is owed two-thirds of the total and Rita is owed one-third of the total.

The Registrar apportions the payment accordingly, $400 to Jen and $200 to Rita.

Where a payer (1.1.P.40) owes a child support debt and a carer debt to different payees, and an amount received is less than the sum of those debts, both debts are treated equally. The Registrar must apportion the payment between the payees in proportion to the amount each of them is owed.

Example: Amy makes a payment of $600 for amounts payable to Billy and Clara. Billy is owed child support arrears of $900 and has a current entitlement of $100. Clara is owed $500 in overpaid child support (the carer debt).

The Registrar apportions the payment, $400 to Billy and $200 to Clara.

The exception to apportionments is where the Registrar receives an amount from the payer which has been paid in accordance with a court order made in enforcement proceedings brought by a payee (8.4.6). If this occurs, the Registrar will disburse the entire amount paid in accordance with the order to the payee who initiated the proceedings (up to the extent of the debt owed to that payee).

Act reference: CSRC Act section 70 Apportionment of payment between payees

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