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5.1.3: Date a liability first becomes enforceable

Context

CSA must work out the day that a liability is first enforceable by CSA when it registers a liability for collection.

Legislative references

Sections 24, 24A, 25, 28, 28A Child Support (Registration and Collection) Act 1988

Regulation 15 Child Support (Registration and Collection) (Overseas-related Maintenance Obligations) Regulations 2000

Explanation

CSA works out the day that a registered maintenance liability becomes enforceable according to the circumstances in which it registered the liability for collection (section 28). The rules that apply to each type of registration are discussed below.

New child support assessments

Existing child support assessments

Stage 1 court orders made from 1 June 1988 (or Stage 1 agreements registered in a court from that date)

Stage 1 court orders made before 1 June 1988 (or Stage 1 agreements registered in a court before that date)

Child or spouse maintenance liabilities transferred from State or Territory collection agencies

Overseas maintenance liabilities and agency reimbursement liabilities

Parentage overpayment orders

New child support assessments

When CSA makes a new child support assessment (including an assessment made in accordance with a child support agreement) it must register the liability for collection (section 24A(1)) unless:

  • the payee elected for CSA not to collect that liability for them when they applied, or
  • the payer applied for the child support assessment.

The liability first becomes enforceable by CSA from the start date of the child support assessment (section 28(ba)). (See chapter 2.1 Applying for an assessment)

Existing child support assessments

A payee can apply for collection of a child support assessment if CSA did not register it because:

  • the payee elected not to have the liability registered for collection when they applied for a child support assessment; or
  • the payer applied for the child support assessment.

CSA must register the liability under section 25(2). CSA must decide the day from which the liability first becomes enforceable by CSA. That day must not be more than 60 days after CSA received the application for collection (section 28(c)).

CSA will decide that the liability is first enforceable from the date it received the payee's application for collection. If the payee made their application by lodging a form at a Centrelink or Family Assistance office, CSA will accept this as the date that it received the payee's application.

If the payee had previously elected not to have the liability registered for collection when they applied for a child support assessment, or if the assessment was made following a liable parent application, the payee can also apply for CSA to collect arrears for them (section 28A and 28A (1A)).

Stage 1 court orders for periodic maintenance made from 1 June 1988 (or Stage 1 agreements registered in a court from that date)

Payee notified CSA within 14 days of the court making the order or registering the agreement

If the payee notified CSA within 14 days of the court making the order or registering the agreement, CSA must register the liability under section 24(1). The liability first becomes enforceable from the date the liability arose under, or was affected by that particular order or agreement (section 28(b))

Payee notified CSA more than 14 days after the court made the order or registered the agreement

If the payee notified CSA, more than 14 days after the court made the order or registered the agreement CSA can register the liability under section 24(2). CSA must decide the day from which the periodic maintenance liability first becomes enforceable by CSA, which must not be before the date the liability arose under, or was affected by that particular order or agreement (section 28(baa)).

CSA will generally determine that the liability is first enforceable from the date it received the payee's application for collection. If the payee made their application by lodging a form at a Centrelink or Family Assistance office, CSA will accept this as the date that it received the payee's application.

CSA may decide that the liability is first enforceable from a day before it received the payee's application for collection if satisfied that the payee was:

  • prevented from notifying CSA within the prescribed 14 day period, and
  • they notified CSA of the order or agreement within a reasonable period of it being practicable for them to do so.

Example

M notified CSA of a court order for spousal maintenance on 15 July 2001. The court made the order on 16 June 2001, but M did not receive a sealed copy of the order from the court until 7 July 2001. CSA is satisfied that it was reasonable for M to wait for a copy of the order before notifying CSA that the order was made. It is also satisfied that M applied for collection of the order within a reasonable period of receiving a copy. CSA decides that the liability is first enforceable from the date the liability arose under the order.

There will also be occasions where the payee obtained a copy of the court order in time to lodge their application within 14 days, but could not do so for other reasons. CSA will consider these reasons in deciding whether it would be appropriate to make the liability enforceable from a date earlier than the date the payee applied.

Payee originally elected for CSA not to collect the liability for them

If CSA did not register a court order or court-registered agreement because the payee elected not to have the periodic maintenance liability registered for collection, the payee can make a later application for collection.

CSA must register the liability under section 25(2). CSA must decide the day from which the periodic maintenance liability first becomes enforceable by CSA, which can't be more than 60 days after CSA received the application for collection (section 28(c)).

CSA will decide that the liability is first enforceable from the date it received the payee's application for collection. If the payee made their application by lodging a form at a Centrelink or Family Assistance office, CSA will accept this as the date that it received the payee's application.

The payee can also apply for CSA to collect arrears for them (section 28A).

Payee has never notified CSA of the court order or court-registered agreement

CSA has a discretion to register a periodic maintenance liability arising from a court order or court-registered agreement made on or after 1 June 1988 (or an agreement registered in a court on or after that date) even if the payee has never notified CSA about the order or agreement (section 24(2)). CSA would do this only in exceptional circumstances.

CSA must decide the day from which the liability first becomes enforceable by CSA, which cannot be before the date the liability arose under, or was affected by that particular order or agreement (section 28(baa)). CSA would decide on a day depending upon the exceptional circumstances that made it appropriate for CSA to register the liability irrespective of the fact that the payee failed to notify CSA of the order or agreement.

The date of effect of a periodic maintenance liability under court order or court-registered agreement

CSA may need to decide the date a periodic maintenance liability arose under or was affected by an order or agreement when it registers a liability for collection.

Some orders and agreements simply specify that an amount is to be paid each week or some other period, without tying the amount to a specific period. The following table sets out how the Registrar will determine the date the liability first becomes enforceable.

Date the order or agreement says the first payment is due

Date the liability arose under or was affected by an order or agreement

No date specified

The date of the order or agreement

The order or agreement specifies a date, but does not specify the period the first payment covers (e.g. $x per week, first payment due 1 July)

The date the order or agreement says the first payment is due

The order or agreement specifies the period the first payment covers (e.g. $x per week, first payment is for the period from 1 July to 7 July)

The commencement date of the period covered by the first payment

Stage 1 court orders for periodic maintenance made before 1 June 1988 (or Stage 1 agreements registered in a court before that date)

If a payee applies for registration of a court order made before 1 June 1988 (or a stage 1 agreement registered in a court before that date) CSA must register the liability under section 25(2). CSA must decide the day from which the periodic maintenance liability first becomes enforceable by CSA. This must not be more than 60 days after CSA received the application for collection (section 28(c)).

CSA will decide that the liability is first enforceable from the date it received the payee's application for collection. If the payee made their application by lodging a form at a Centrelink or Family Assistance office, CSA will accept this as the date that it received the payee's application.

Child or spouse maintenance liabilities transferred from State or Territory collection agencies

CSA can register a periodic maintenance liability transferred from a state collection agency (See chapter 3.2 What is a stage 1 registrable maintenance liability?, heading Collection agency maintenance liability. The liability is enforceable by CSA from the date the liability is transferred. CSA will negotiate with the other agency about the most appropriate transfer date.

Overseas maintenance liabilities and agency reimbursement liabilities

CSA can register an overseas maintenance liability or an agency reimbursement liability for collection. An overseas maintenance liability is first enforceable on the day on which the liability is registered (regulation 15 Child Support (Registration and Collection) (Overseas-related Maintenance Obligations) Regulations 2000). Any amounts that are in arrears under the order are also enforceable under the Registration and Collection Act.

Parentage overpayment orders

A parentage overpayment order is an order requiring repayment of a specified amount, rather than a periodic maintenance liability (see chapter 3.2.6).

CSA will register for collection any amounts that have yet to be paid by the payer of the order to the payee. If the court has specified in the order a rate at which the overpayment is to be repaid, CSA will register the debt for collection at this rate, ending when the specified amount is repaid in full.


Version 1.5

Issued 1 January 2007

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