If you receive Family Tax Benefit Part A, the amount you receive is based on our assessment using the child support formula. This is known as a CSA notional assessment. How much Family Tax Benefit Part A you receive is not based on the child support agreement amount.
If the entire amount agreed is not collected, Centrelink uses the formula amount to assess your Family Tax Benefit Part A entitlement. Centrelink calculates the percentage collected and applies that percentage to the child support that you would have received if a CSA notional assessment was in place.
For example, if we collect 50 per cent of the agreed amount of child support then only 50 per cent of the formula amount will affect your Family Tax Benefit rate.
Example: Mary
Mary has an agreement with Philip to receive $4,000 child support per annum. Based on the CSA notional assessment, she would receive $5,000 per annum if they didn't have an agreement. CSA only collected 50 per cent, or $2,000, of the child support agreement amount. So, Mary's Family Tax Benefit Part A will be assessed on $2,500, which is 50 per cent of the CSA notional assessment amount of $5,000.
If you don't receive the full amount of child support you are entitled to during the financial year, Centrelink will keep a record of the underpaid amount and treat any additional amount of child support you receive in future years as though it was paid in the year the underpayment occurred.
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