Capacity to pay reviews
The Child Support Agency (CSA) has a process for customers in special circumstances to apply for a change of assessment. Their circumstances must fall within 10 reasons. Read more about the 10 reasons and special circumstances on www.csa.gov.au
The CSA can also review cases and start a change of assessment under reason 8 without an application from either parent. This begins with a capacity to pay review of both parents.
Why would the CSA start a capacity to pay review?
This would happen if we believe the assessment isn't an accurate reflection of the income, property or financial resources of one or both parents (reason 8). In many cases this can occur when a parent minimises their taxable income through legitimate business arrangements. In some cases a parent may be deliberately avoiding child support by under-reporting their income.
Example
A parent told the CSA she had a low taxable income. However, there was information that indicated she was self-employed and earning more. There was also a possibility she had rental property that wasn't considered as part of the income used to calculate the assessment.
Note: Our review will only consider both parent's income, property and financial resources - not their earning capacity.
Read more about the factors the CSA can consider in The Guide Part 2.6.14, available on our website.
What happens during a capacity to pay review?
A case manager will talk you through the process, including:
- your participation and how to complete paperwork
- collecting information from third parties (such as a bank)
- collecting information about a spouse or family member
- what information will be shared with the other parent
- the option of making a child support agreement
- what happens next - likely outcomes
- change of assessment process
- how to object to the decision.
Your case manager can answer any questions and will be available to you on 131 272* throughout the review.
Your participation
It's important that you and the other parent participate in the review so that both parents' circumstances can be fully considered.
The Assets and Liabilities Form aims to collect information about your individual and business financial circumstances. Completing it helps us take into account your full financial situation to reach an accurate and fair decision.
You should complete and return the form plus any supporting documents within 14 days. Call your case manager on 131 272* about another return date if this isn't possible.
Send to:
GPO Box 9815 Melbourne VIC 3001 or
Fax number: 1300 309 949
The form can also be completed over the phone by calling 131 272*, however you'll still need to send in any supporting documentation within 14 days.
Help completing the form
Call us on 131 272 if you'd like more information or help to fill in the form. You can also find the form online at www.csa.gov.au
Collecting information from third parties
If we don't receive your form or if the information you provide is insufficient, notices may be sent to your accountant, bank, employer, business partner or any other third party to obtain your financial information.
Collecting information about a spouse or family member
In some cases the CSA may look at the financial situation of a spouse, family member or another person. This will happen only if necessary to get information about your resources. For example, you may have partners in a business and we may need to confirm your share of the business. If this happens, your case manager will explain it to you and how you can confirm or refute the information.
Will the other parent see my information?
Some information we collect must be shared with the other parent due to exchange of information laws. This usually happens where we recommend a change to a parent's income and the case is referred for a change to the assessment. There are three stages where information could be shared.
Stage one: if a change to a parent's income is recommended and the case is referred for a change to the assessment
- A summary of the facts that form the basis of the recommendation
- Any response to the recommendation by either parent, including any supporting documents.
What will be shared?
You may edit documents before sending them to us if you don't want the other parent to receive that information. For example, you may choose to delete an account number on a bank statement. However, if the information needed to make the decision is edited out it may not be considered in the outcome.
- Items required by law such as your tax file number
- Copies of information provided or collected before the recommendation letter is issued.
What won't be shared?
Stage two: if one or both parents object to the change of assessment decision
- All information in an objection letter and any supporting documents so that the other party can respond.
- Any response received is also shared with the parent who lodged the objection.
What will be shared?
Stage three: if one or both parents disagree with the objection decision and appeal to the Social Security Appeals Tribunal (SSAT)
- By law the CSA must provide a copy of all documents relevant to the review of the decision to the SSAT. This can include information such as financial details, tax information, credit files, registration, property details, international travel movements and records of conversations with the parents.
- The CSA must give both parents a copy of the documents provided to the SSAT.
What will be shared?
What happens next?
The capacity to pay review process can take up to 90 days. At the end of this period the CSA will contact you about the outcome. There are four likely outcomes:
- No further action (no change) - this is where there's no evidence for a change - the child support assessment is a fair reflection of both parents' financial situation.
- Making a child support agreement - agreements offer parents a flexible way of arranging child support. If you can both agree on how your children should be supported financially, you can make an agreement and ask us to accept it. There are some conditions that must be met. Read more about child support agreements on our website www.csa.gov.au.
- You and the other parent agree to withdraw - if the parent entitled to receive child support doesn't get an income-tested pension, benefit or allowance, both parents can ask CSA to discontinue the process. If the receiving parent meets the criteria then both parents should complete the form Joint election from payer and payee to stop CSA initiating a change to the child support assessment. You can also do this over the phone. If the criteria is met we'll write to you both to confirm your withdrawal.
- Recommending a change to the income used for your assessment (the case is referred for a change to the assessment) - this is where there's evidence suggesting the income used in the assessment doesn't accurately reflect one or both parent's circumstances. Your case manager will discuss the recommendation with you and send you a letter that explains the recommendation. You'll also get a response form to complete and return to CSA within 14 days, if you choose. You then move onto the change of assessment process.
Change of assessment process
Your case manager will arrange for a Senior Case Officer from the change of assessment team to contact you. This will give you and the other parent an opportunity to confirm or refute the conclusions made, discuss any circumstances not previously considered and talk about the recommendation in more detail. The Senior Case Officer will then make a decision based on the recommendation and any response received. You'll get a written copy of this decision.
Reminder: reasons to change
The CSA can only recommend a change to your assessment under reason 8 (the assessment is unfair because of the income, earning capacity, property or financial resources of one or both parents). We can't recommend a change for any of the other reasons. The review will also only consider a parent's income, property and financial resources, not their earning capacity.
If you or the other parent believe that any of the other reasons apply, you should call the change of assessment team on 131 141*. You don't have to wait for the outcome of the capacity to pay review - you can complete a change of assessment form and send it in at any time.
What if I disagree with the decision?
When you get the written decision, it's possible you or the other parent will disagree with it. If you're not sure or think the information may be wrong, call the CSA on 131 272*. This gives you and the CSA a chance to discuss any misunderstandings as well as your review options.
*Call charges may apply.