2.8.7: Electing to end an assessment

Context

A payee is able to end an assessment for a child by electing to end the liability from a specified date. However, Centrelink must approve the election if the payee is entitled to receive Family Tax Benefit, Part A, at more than the base rate.

Legislative references

Sections 151 and 151A Child Support (Assessment) Act 1989

Explanation

A payee can elect to end an assessment for a child from a specified date (section 151).

If the payee is entitled to receive FTB Part A at more than the base rate, the election has no effect until it is approved by the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) (section 151(4)). The secretary has delegated the power to approve elections to officers in Centrelink. CSA must advise Centrelink of the payee's election as soon as it is practicable (section 151A(1)).

Centrelink has to decide whether, if the payee's election is accepted, the payee will have has taken 'reasonable action to obtain maintenance' for the child (section 151A(2), (3) and (4)).

Centrelink must advise CSA of its decision (section 151A(5)). If Centrelink decides not to approve the election it has to advise the payee in writing (section 151A(6)). The payer and payee can both seek a review of Centrelink's decision to refuse to approve an election to end an assessment. CSA will refer customers dissatisfied with Centrelink's decision to Centrelink to pursue their review rights.

By specifying the date on which to end an assessment, a payee can effectively choose to discharge any amount unpaid. However, when an assessment is ended on a certain date any assessment before that date remains in force. If CSA amends the assessment(s) that apply to any of the days before the date the payee specified, this may result in an overpayment or underpayment.

A payee cannot reverse their election to end an assessment. However, the payer and payee are both entitled to make a new application for assessment.

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Version 1.3

Issued 31 January 2007

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