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.

3.1.6.80 Changing the method of collection

Changing from private collection (1.1.P.130) to agency collection

When changing collection methods, a payee can request that Services Australia collect arrears of child support amounts that were unpaid during the previous period of private collection. Services Australia can collect arrears of up to 3 months, or up to 9 months in exceptional circumstances. Arrears in excess of this can only be collected privately by the payee.

Note: Child Support decides what constitutes exceptional circumstances.

From 1 July 2012, if a deemed amount of child support is included in the FTB MIT for a payee privately collecting less than their full child support entitlement, and the payee swaps to agency collect, the use of the deemed amount ceases on the day from which agency collection applies. This includes an earlier period of unpaid private collect arrears that are able to be collected by Services Australia (generally limited to 3 months). The actual amount collected by Services Australia will then be included in the MIT when received. Any arrears privately collected in future that relate to the deemed period are excluded from FTB calculations to prevent double counting.

Changing from agency collection to private collection

The payee (or the payee and payer jointly) can elect to opt out of agency collection. In certain circumstances, the Child Support Registrar can also make a case private collect. A payer cannot elect to opt out of agency collection without the payee’s consent.

When a payee (or payer and payee jointly) opts out of agency collection, they can also elect for Services Australia not to collect any unpaid amounts (arrears).

When a payee (or the payee and payer jointly) changes from agency collection to private collection, they are not ending the child support assessment, they are simply stopping collection by Services Australia.

Services Australia decides whether the payee is eligible to change from agency collection to private collection. The payee may lodge an objection with Services Australia against a decision not to allow them to change to private collection.

Act reference: CSRC Act section 30 Effect of registration, section 38 Variation of Register to have enforceable maintenance liability no longer enforced under Act, section 38A Election by payee or by payee and payer jointly, section 38B Decision by Registrar based on payment record and other factors

Policy reference: FA Guide 3.1.5.30 Taking reasonable maintenance action, 3.1.5.50 Reasonable maintenance action completed - Child Support collect, 3.1.5.55 Reasonable maintenance action completed - private collect, 3.1.6.90 Appeals & reviews of Child Support decisions

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