Private Collect
Released: 07 March 2007
This media backgrounder on Private Collect is intended to assist journalists understand service delivery options available to separated parents.
What is Private Collect?
Private Collect is the term used to describe parents transferring child support between themselves without needing the Child Support Agency’s involvement. It is the preferred payment option for the majority of separated parents (currently 52.6% of all child support customers). Under these arrangements the Child Support Agency (CSA) assesses and advises parents of the amount of child support that is payable, so that parents can then transfer child support payments between themselves without using the CSA as a facilitator.
For many parents Private Collect is seen as the preferred approach as it allows them to manage their child support with advice from CSA. CSA's only involvement is determining the amount of child support money that is payable. It is then up to the parents to make arrangements for how and when child support will be transferred between them.
Private Collect arrangements can be personalised to include non-financial support. For example, parents might agree that the paying parent do repairs around the house for the other parent that have an agreed dollar value, rather than making all child support payments in cash.
CSA staff are trained to assist parents to assess whether Private Collect is a viable option and suggest ways to successfully maintain the arrangement. CSA strongly recommends parents put their Private Collect arrangement in writing so that both parents are clear on the payment details they have agreed upon. CSA also strongly recommends keeping records of any payments made and the value of any services provided in place of payments.
As a safety net, if a Private Collect arrangement breaks down the parent receiving child support can request CSA take over collection, including the collection of some unpaid amounts. This is why CSA recommends keeping records of payments made, in case there is a dispute about amounts owing.
When CSA takes over collection, it usually will collect any unpaid amounts from three months before the request was made. In some instances, CSA may collect amounts owing from up to nine months earlier if the recipient parent had compelling circumstances preventing them from contacting CSA sooner (for example, if they were in hospital).
Statistics
At the end of June 2006, 389,387 cases – representing 52.6 per cent of all separated parents currently being assessed by CSA – were using Private Collect arrangements. This is an increase of 7,864 cases over the previous year. Private Collect cases have increased from 39.3 per cent to 52.6 per cent (an increase of more than 13 per cent) of the active caseload since 1996.
The rising number of Private Collect cases clearly shows that separated parents in Australia recognise and accept the need to financially support their children. It also shows parents are getting better at forming a working relationship for the benefit of their children.
More than 66 per cent of parents registering new cases with the CSA in 2006 chose Private Collect. This is consistent with the Government's aim to ensure child support arrangements intrude as little as possible on personal privacy.
The chart below shows Private Collect cases taking over from CSA Collect cases as parents' preferred method of transfer.
Comments from our General Manager, Matt Miller:
"The fact that the majority of separated parents are now managing their own child support payments without CSA's involvement is a clear indicator that a great many separated parents in Australia want to and do take responsibility for the financial wellbeing of their children.
"CSA's approach encourages separated parents, wherever possible, to manage the responsibility for child support obligations themselves based on advice from CSA. This is sometimes not possible and in these circumstances CSA helps parents by facilitating the transfer of child support.
"To promote parental self responsibility for child support, the CSA has also been providing targeted services in recent years to help parents cope financially and emotionally with issues around separation."
Further information on private collect
Private collect fact sheet: http://www.csa.gov.au/fact/3008.aspx
Media contact:
Call: 0434 605 144
Email: media@csa.gov.au
