3.1.5.30 Taking reasonable maintenance action

Summary

This topic provides information about:

• who is required to take reasonable maintenance action
• taking reasonable action for maintenance (1.1.M.10)
• the amount of time the individual has to take action before they fail to meet the MAT
• maladministration by Centrelink
• where an individual applies for an exemption
• where reasonable maintenance is not taken, and
• consequences of not taking reasonable maintenance action.

Who is required to take reasonable maintenance action

An individual is required to take reasonable maintenance action for a child if they are entitled to apply for maintenance (3.1.5.25) for the child and Centrelink considers that it is reasonable that they should take this action. This requirement also applies to the individual's current partner (1.1.P.30) if the partner is entitled to apply for maintenance for the child. If the individual or their partner does not meet this requirement, only the base rate (1.1.B.15) of FTB Part A is payable in respect of the child and the child is not included for RA purposes.

Individuals who are entitled to receive child support and have a senior secondary school child turning 18 are required to take reasonable action to obtain an extension of their child support assessment (3.1.5.40).

If an individual is the payer in a child support assessment or agreement for a child, there generally will not be a requirement for the individual to take action to obtain maintenance for that child as they have already met the MAT requirement by being the payer.

For information about situations where Centrelink may consider that it is not reasonable for an individual to take maintenance action, refer to 3.1.5.70.

Taking reasonable maintenance action

To take reasonable maintenance action, an individual generally needs to do one of the following:

• apply for a child support assessment with Child Support
• apply to Child Support for the acceptance of a child support agreement, or
• take reasonable action to change from being the payer under a child support agreement to being the payee for a child whom the individual has more than 65% care.

If an individual has one of the above actions in progress, they meet the MAT during the period of time their action is still in progress. Further steps to complete maintenance action may be required (refer to policy reference below).

Where the paying parent is overseas and in a reciprocating jurisdiction, the individual will generally be able to apply for a child support assessment. However, in some circumstances it may be appropriate for the individual to obtain maintenance from the overseas jurisdiction, which may satisfy the MAT, depending on the circumstances of the case. For more information see topic 3.1.5.80.

Period of grace to take maintenance action

Instalment (1.1.I.100) and past period (1.1.P.60) individuals have 13 weeks to take reasonable action to obtain maintenance for a child. After 13 weeks, if the MAT is not met, the individual will be paid the base rate of FTB Part A for the child. The 13-week period begins when the individual first becomes entitled to claim or apply for maintenance for the child. The 13-week period would therefore apply from the later of:

• the DOB of the FTB child
• the date of separation from the child's other parent
• the date the child came into the individual's care
• the date the individual's percentage of care increases to 35% or more, or
• such later date that the individual first becomes entitled to claim or apply for maintenance.

Where an individual becomes eligible for FTB after they became entitled to claim or apply for maintenance, a reduced or no grace period may apply if Centrelink considers that it is reasonable for the individual to take maintenance action prior to the date they became entitled to FTB. Similarly, where an individual lodges a past period claim for FTB after they became entitled to apply for maintenance, some or all of their grace period may have already elapsed. In these situations, eligibility for an exemption from the MAT and the length of the exemption would depend on the circumstances of the case.

Additionally, if certain circumstances exist that are outside an individual's control making it unreasonable for the individual to take maintenance action within the 13-week grace period, the period may be extended or an exemption from the MAT may be applied. The circumstances must be assessed on a case by case basis and the grace period or exemption can only be extended up to the date which it would no longer be considered unreasonable for the individual to take maintenance action.

Maladministration by Centrelink

If Centrelink subsequently becomes aware that an individual was entitled to claim or apply for maintenance from an earlier date but had not applied at the time, and an exemption (for example, fear of violence) was not appropriate, an FTB Part A debt may arise due to the individual not taking reasonable maintenance action. However, where an individual did not take maintenance action (even though they were entitled to do so) because of maladministration by Centrelink (for example, Centrelink provided incorrect information that caused the individual to not apply for maintenance for an earlier period), the individual's failure to take action could be considered 'reasonable' in the circumstances. Centrelink should consider each case individually and decide whether the individual's inaction was reasonable in the circumstances. If Centrelink decides that the individual's inaction was reasonable:

• the individual should be assessed as being exempt from the MAT for the earlier period, and
• from the time the maladministration is corrected, there would be a grace period of at least 14 days and no more than 28 days, to take reasonable maintenance action before the child's FTB Part A is reduced to the base rate.

Application for exemption

If an individual receiving FTB by instalments applies for an exemption from the requirement to take reasonable action, they are taken to be satisfying the MAT until a decision is made.

If the request for an exemption is refused and the 13-week grace period has ended, the individual has a further 14 days from the date they are advised of the decision to take reasonable maintenance action.

If the individual fails to attend an interview relating to their request for an exemption, their rate of FTB Part A must be reduced to the base rate from the end of the 13-week grace period.

Where an individual who claims FTB for a past period requests an exemption from the requirement to take maintenance action, an exemption may be granted and backdated depending on the circumstances of the case.

Reasonable maintenance action not taken

Reasonable action to obtain maintenance has not been taken for a child if the individual has chosen not to:

• lodge an application for child support
• take action to establish parentage of the child where it is considered reasonable to do so
• continue with an application for child support by withdrawing the application before the assessment is completed
• provide information to Child Support that is reasonable for them to provide, and Child Support rejects their application for child support or the application is not completed
• obtain an extension to their child support assessment beyond their child's 18th birthday where the child is still in secondary school, or
• change from being the payer under a child support agreement to the payee following a significant change in care arrangements (3.1.5.40).

Consequences of not taking reasonable maintenance action

Where maintenance action is applicable and Centrelink is advised by a social worker or by other means that the individual is not taking reasonable action to obtain maintenance for a child, Centrelink should contact the individual immediately.

The individual's FTB Part A for the relevant child should be reduced to the base rate of FTB Part A, unless the individual:

• has been granted an exemption or is in the process of applying for one, or
• takes other reasonable action, or subsequently finalises necessary action, to obtain maintenance.