5.5.3: Top up

Context

The Registration and Collection Act allows CSA to use funds from the Consolidated Revenue Fund to 'top up' the amounts received from employers in limited circumstances.

Legislative references

Sections 4, 47, 77 and 78 Child Support (Registration and Collection) Act 1988

Explanation

Where CSA is collecting child support from a payer's salary or wages, it sends the employer a notice that instructs them to:

• make periodic deductions from salary and wages paid to the payer, from a specified day in accordance with the specified weekly deduction rate, and
• pay CSA the amounts deducted each month by the 7^th day of the following month and
• give CSA notice of the amounts deducted (section 47(1)).

See Chapter 5.2 Administrative enforcement.

If CSA is satisfied that an employer has deducted the required amounts from a payer's salary or wages, but has failed to pay them to CSA on time, it can transfer equivalent amounts from consolidated revenue for payment to the payee. CSA must do this if it has not received a deduction by the closing day of the month in which the employer was required to pay the amount. The closing day for any month is 9 days before the first Wednesday of the following month (section 4(1)).

CSA can also transfer funds from consolidated revenue to the Reserve for payment to a payee when:

• an employer remits less than the total expected amount to CSA and they are required to deduct amounts for more than one payer:
• the employer has not advised CSA of the particulars of the payment (section 78).

The transfer of funds to the Reserve in these circumstances is commonly referred to as 'top up'.

Although top up is used to make a payment to a payee, the amount 'topped up' is still required to be paid to CSA by either the employer or the payer. The debt is recoverable from the employer if they deducted the amount from the payer's salary or wages, but failed to remit it to CSA. If the employer did not deduct the amount from the payer's salary or wages, the payer is still obliged to pay the amount to CSA as a child support debt. CSA will recover the 'topped up' amount from those payments when made.

---

Version 1.1

Issued 23 January 2008

Feedback

<<< Previous | Next >>>