2.5.3: Making a decision on an application

Context

The Assessment Act sets out how CSA makes a decision to accept, or to refuse, a child support agreement.

Legislative references

Sections 91, 91A, 92, 96, 98T, and 98U Child Support (Assessment) Act 1989

Clause 10, Schedule 1 A New Tax System (Family Assistance) Act 1999

Explanation

In deciding whether an agreement is a child support agreement, CSA may act on the basis of the application, any documents accompanying the application, and the agreement itself. CSA is not required to conduct any inquiries or investigations before making a decision (section 91).

An agreement or a consent order?

An order for a change to the assessment that is made by consent under Part 7 of the Assessment Act may be signed by both parents and contain provisions that can be in a child support agreement. However, a court order is not a child support agreement. A parent does not have to apply to CSA for acceptance of a court order. When CSA is notified that a court has made an order for a change to the assessment, it is obliged to amend the child support assessment to give effect to that order (section 119 of the Assessment Act).

An agreement during a change of assessment process

If either parent has applied for a change of assessment under Part 6A of the Assessment Act and the parents enter into a child support agreement before the change of assessment decision is made, CSA must decide to accept or refuse the agreement (section 98U). See chapter 2.6 for details of how CSA will make this decision.

Making a decision to accept or refuse a child support agreement.

If a parent applies for CSA to accept a child support agreement outside the change of assessment process, the way CSA will make a decision will depend on whether the payee is receiving, or has applied for, Family Tax Benefit (FTB) Part A at more than the base rate.

Payee does not receive, and has not applied for, more than the base rate of FTB Part A.

CSA must accept the agreement if:

• the payee is not receiving, and has not applied for, more than the base rate of FTB Part A on the day CSA received the application for acceptance of a child support agreement; and
• CSA is satisfied that the requirements of an application for acceptance of an agreement are met.

Payee receives, or has applied for, more than the base rate of FTB Part A

If the payee receives or has applied for more than the base rate of FTB Part A, CSA must refuse to accept the agreement unless there is a child support assessment in force immediately before the application is made (section 92(4)). (The payer and payee are both entitled to reapply for acceptance of the agreement after either of them applies for a child support assessment and CSA accepts that application.)

If there is an administrative assessment in force on the day CSA received the application for acceptance of a child support agreement and the payee receives, or has applied for more than the base rate of FTB Part A, CSA must send a copy of the agreement to Centrelink (sections 91A(1) and (2)) (except if the payer and payee have reconciled). Centrelink has to decide whether, if CSA accepts the agreement, the payee will have taken 'reasonable action to obtain maintenance' for the child (section 91A (3)).

Centrelink must advise CSA of its decision (section 91A(4)). If Centrelink decides that the agreement does not pass the 'reasonable action to obtain maintenance' test (known as an adverse decision) it has to advise both parents in writing (section 91A(5)).

CSA must accept an agreement:

• if Centrelink has decided that the agreement passes the 'reasonable action to obtain maintenance' test, and
• CSA is satisfied that the requirements of an application for acceptance of an agreement are met.

CSA must refuse to accept the agreement if Centrelink has made an adverse decision in relation to the agreement (section 92(3)). The payer and payee can both seek a review of Centrelink's adverse decision. CSA will refer customers dissatisfied with Centrelink's decision to Centrelink to pursue their review rights.

Notification of the decision

Once CSA has decided to accept, or refuse, an agreement it will notify both parents and advise them of their objection and appeal rights.

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Version 1.1

Issued 18 February 2003

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