2.6.6: CSA-initiated change of assessment

Context

CSA can initiate a change of assessment without an application from either parent if it is satisfied that the child support assessment is unfair because of a parent's income, earning capacity, property or financial resources.

Legislative references

Division 3 of Part 6A Child Support (Assessment) Act 1989

Explanation

When can CSA initiate a change of assessment?

Parties to a CSA-initiated change of assessment

Summary of information

Right to respond

Joint election to stop the proceedings

Each parent entitled to a conference

CSA not obliged to conduct investigations

Procedural fairness

Each parent entitled to a conference

Procedural fairness

Making an agreement during a CSA-initiated change of assessment

CSA must give written notice of the decision

When can CSA initiate a change of assessment?

CSA can initiate a change of assessment without an application from either parent if it is satisfied that the child support assessment is unfair because of a parent's income, earning capacity, property or financial resources (Reason 8) (section 98K and 98L(1)(a)). CSA cannot initiate a change to an assessment on the basis of any of the other reasons that a payer or payee can use to apply for a change of assessment. CSA must also be satisfied it would be just and equitable and otherwise proper to change the assessment (section 98L(1)(b)).

CSA has limited power to make a retrospective decision when it initiates a change to the assessment. CSA cannot change the assessment of child support payable for any day that is more than eighteen months before the day upon which it notifies the payer and payee of its proposal to change the assessment by sending them a summary of information (section 98S(3B)(b)) unless a court has granted leave to make a change for an earlier period (section 112).

Parties to a CSA-initiated change of assessment

The parties to a CSA-initiated change of assessment are the payer and the payee in the case (section 98K(2)).

Summary of information

CSA must notify both parents in writing when it initiates a change of assessment (section 98M(1)). CSA must also serve a 'summary of the information' that it used to form the view that it should change the assessment (section 98M(2)). The summary will include information about the parent's income, earning capacity, property or financial resources that are not currently reflected in the child support assessment; the proposed new child support income amount; and a calculation of the new assessment based on that amount. The summary will contain sufficient detail to enable the payer and payee to comment and respond appropriately. It will not, however, include identifying information (such as business names and locations).

Right to respond

CSA must give both parents an opportunity to provide information for CSA to take into account when making a decision to change the assessment (section 98N(2)). CSA does this by sending each parent a form (Your response. CSA-initiated change to your child support assessment) with the summary of information. If either parent completes the response form, CSA must send a copy of that response and any supporting documents to the other parent (section 98N(2)).

Joint election to stop the proceedings

If a payee is not receiving an income-tested pension, benefit or allowance, the parents can make a joint election to stop CSA from making a decision to change the assessment (section 98P(1)). Parents can do this by completing CSA's form CSA2899 "Joint election from payer and payee to stop CSA initiating a change to the child support assessment". CSA will notify the parents in writing that it will not be making a decision to change the assessment because of their joint election (section 98P(3)).

Each parent entitled to a conference

CSA must give each parent an opportunity to have a conference with the Senior Case Officer making a decision on CSA-initiated change of assessment (section 98Q(2)). However, CSA can decide to refuse to change the assessment without giving either parent a conference.

CSA will offer the applicant and respondent a personal or telephone conference. This can be a joint conference with the other parent, if both parents agree (section 98Q(3)). CSA can also conduct separate conferences for each parent, either personally, or by telephone.

Neither parent can have a representative appear for them at their conference (section 98Q(5)).

CSA not obliged to conduct investigations

CSA can make a change of assessment decision on the basis of the information that it used to form the view that it should initiate a change of assessment, and the responses and any supporting documents that the parents provided (section 98Q(1)(a)). CSA can conduct further enquiries, but is not obliged to do so (section 98Q(1)(b)). If CSA requires further information from either parent, or from third parties, it can issue a notice requiring a person to provide that information (section 161).

Procedural fairness

CSA must deal with a CSA-initiated change of assessment in a way that is procedurally fair. A decision-maker must ensure that a person is aware of any adverse information and that they have an opportunity to be heard and make submissions in support of their case. In addition to providing each parent with a copy of the other parent's response and supporting documents, CSA will also advise each parent of any additional information that it intends taking into account in a way that is adverse to them, and invite them to comment upon that information. This would include information provided by the other parent at a separate conference, or by a third party after the conference.

However, CSA will not provide any further detail about the financial information that led CSA to initiate a change of assessment. CSA will refer to this financial information in the same terms as it was described it in the summary of information.

Making an agreement during a CSA-initiated change of assessment

Parents can make an agreement while CSA is considering making a CSA-initiated change of assessment decision. CSA will deal with the agreement in the same way that it does a child support agreement made while it is considering a change of assessment application from either parent (section 98U(1)).

CSA must give written notice of the decision

CSA must give the parents written reasons for the decision to change an assessment, including the reasons for establishing that special circumstances existed in the case (section 98S(4)). This allows parents to have a clear understanding of the meaning and effect of the decision. CSA will also document its reasons for the type and duration of the decision in the notice of decision.

If CSA fails to give written reasons to either parent the validity of the decision is not affected (section 98S(5)).

CSA must also amend the administrative assessment to give effect to the change of assessment decision and give the payer and payee a written notice of the assessment (sections 75 and 76). The assessment notice must include, or be accompanied by, information about the payer and payee's right to object to CSA's decision, and to apply to the Social Security Appeals Tribunal if they are aggrieved by CSA's decision on the objection (section 76(3)).

If CSA refuses to make a change to the assessment, it must also provide the payer and payee with written reasons for that decision.

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Version 1.3

Issued 1 January 2007

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