Intervention points: actions taken by payee

Ending a child support assessment

12.31 In limited circumstances, payees may end a child support assessment (child support case). Victims of family violence may be pressured or coerced to end a child support assessment. The CSA has identified family violence as a common reason for a payee to end an assessment.^[31]

12.32 Although payees may end a child support assessment pursuant to the Child Support (Assessment) Act 1989 (Cth), the CSA cannot accept this election without Centrelink approval when payees receive more than the base rate of FTB Part A.^[32] Centrelink does not generally approve elections to end assessments when payees receive more than the base rate of FTB Part A, except where it grants payees exemptions from the reasonable maintenance action requirement.^[33] Generally, an election to end an assessment cannot be reversed, but payees may make new applications for a child support assessment.^[34]

12.33 The Procedural Instruction, Ending Assessments,provides that payees receiving more than the base rate of FTB Part A, who elect to end child support assessments, should be referred to Centrelink, and, where they disclose family violence, actively referred for an appointment with a Centrelink social worker.^[35] Similarly, the Child Support Guide provides that payees receiving more than the base rate of FTB Part A, who are considered at risk of family violence, should be referred to Centrelink social workers for risk assessments.^[36] However,the Child Support Guide and Ending Assessments do not provide guidelines to refer payees who do not receive more than the base rate of FTB Part A, when they end child support assessments due to family violence.^[37]

12.34 The ALRC considers that the Child Support Guide and relevant procedural resources should provide that all payees who have disclosed family violence—including payees who receive no, or no more than the base rate of, FTB Part A—should be provided with referrals to Centrelink social workers, or other expert service providers, upon a request or election to end an assessment.

12.35 Payees’ elections to end assessments, when they receive no, or no more than, the base rate of FTB Part A, do not affect government expenditure in the form of increased family assistance. However this recommendation would have other significant benefits. As discussed above, Centrelink social workers and other expert service providers may provide supports, and further referrals, to assist payees to improve their safety, and to remain within the child support scheme—where appropriate. Expert service providers may also advise victims that, if their safety concerns are addressed or diminish over time, they may apply for a new child support assessment.

12.36 The ALRC considers that a request or election to end a child support assessment should also be an intervention point for safety concern identification for all payees. This should facilitate referrals to Centrelink social workers and expert service providers where family violence is disclosed.

Electing private collection

12.37 Payees may choose to collect child support payments from the payer privately, or to have the CSA collect and transfer payments. The ALRC considers that in family violence cases, CSA collection of child support payments may be the more suitable method, as it minimises both the need for direct inter-party contact about child support, and payers’ opportunities for non-compliance with their child support obligations.

12.38 Payees choose CSA collection or private collection when they apply for child support.^[38] As discussed below, payees may also elect to change collection methods. The CSA encourages private collection. In its 2007–2008 annual report, DHS noted that the ‘CSA is committed to encouraging and supporting parents to manage their child support responsibilities independently through private collection arrangements’.^[39] The Procedural Instruction, Opting Out and/or Discharge Arrears,states that the CSA

encourages private collection arrangements between parents where possible. The benefits of private collection are:

•  greater customer control and responsibility over their child support
•  greater flexibility in payment type, method and frequency
•  less cost to the community
• encouraging greater co-operation and communication between parents.^[40]

 

12.39 Private collection may be suitable for many parents, particularly those in low-conflict cases. DHS reports that:

CSA research undertaken in 2007–08 clearly indicates that parents using private collection arrangements are more satisfied with the child support system. For parents who are able to cooperate on parental decisions, private collection provides the most flexibility and satisfaction.^[41]

12.40 Some stakeholders expressed the view that CSA collection of child support payments is more suitable than private collection, and should be encouraged, in family violence cases.^[42] There are two key reasons for CSA collection in these circumstances.

12.41 First, collection methods used by the CSA can minimise payers’ ability to avoid child support obligations. Child support avoidance, in the family violence context, may be linked with ongoing control and economic abuse.^[43] The CSA’s methods of collecting child support payments include deductions from: salaries and wages; tax refunds; social security pensions and benefits; and family tax benefits.^[44]

12.42 Secondly, where the CSA collects child support, victims avoid direct contact about child support payments with persons who have used family violence. Participants in one study reported that they were able to ‘reduce contact and increase safety’ once the CSA collected child support.^[45] By minimising inter-party contact about child support, CSA collection may improve the safety of victims of family violence.

12.43 Further, victims may elect to collect privately due to fear of, or coercion by, a person who has used violence. As a result of fear or coercion, victims may also collect less child support than they are entitled to—or no child support at all. Statistics of such cases may be ‘hidden’ as the CSA will consider them to be successful private collection cases, in the absence of any information to the contrary.^[46] This may lead to financial disadvantage for payees and their children.

12.44 The Commonwealth Ombudsman expressed concern about reports ‘that some payees with private collect arrangements acquiesce to payers’ coercion and agree to hide the fact that they are not collecting their full entitlement to child support’.^[47] The Sole Parents’ Union stated that some victims

elect to collect child support privately as a way to avoid child support altogether. Because of the requirement to take reasonable maintenance action, they are then forced into the situation where they either have to lie about the child support collected, or they settle for minimum family tax benefit.^[48]

12.45 An ADFVC study also identified the issue of victims collecting privately—and not collecting the full assessed amount—as an issue of concern.^[49]

12.46 NLA suggested that an election to collect privately, or to end collection by the CSA, should, of itself, prompt family violence screening, and that appropriate referrals should be made when screening leads to concern regarding the appropriateness of private collection.^[50]

12.47 In the ALRC’s view, child support collection is a CSA-provided service, and information about its relevance in family violence cases should be provided to customers at the application stage, in accordance with Recommendation 4–2. The recommendations contained in this chapter and Chapter 4, about identifying family violence-related safety concerns and providing referrals, also provide opportunities for targeted delivery of this information at the initial application stages of child support cases, and at other relevant points.

12.48 Given the Chapter 4 recommendations, it is unnecessary to recommend further intervention points to provide for:

• safety concern identification when payees elect to collect privately in their child support application; and
• referrals to expert service providers when payees who have disclosed family violence elect to collect privately in their child support application.

Safety concern identification and referrals when a payee lodges a child support application are provided for in Recommendations 4–1 and 4–3.

12.49 However, as these recommended measures apply at the initial application stage, they do not capture circumstances where payees change from CSA collection to private collection. These circumstances are discussed below.

Ending CSA collection

12.50 In cases involving family violence, payees may end CSA collection due to fear or coercion by the other parent. Payees who have previously elected for CSA collection of child support may elect to change to private collection, and vice versa.^[51] Payees may also elect for the CSA not to collect unpaid amounts of child support (arrears) when they end CSA collection, after they end CSA collection, or when they are no longer eligible for child support.^[52] When CSA collection of child support payments is ongoing, payees cannot elect for the CSA to end collection of arrears.^[53]

12.51 Victims of family violence may end CSA collection of child support payments and arrears for the same reasons they may choose to collect privately at an initial point. The Australian Association of Social Workers Queensland Branch (AASW (Qld)) stated that a victim may end CSA collection (or choose private collection initially) in acquiescence to the demands of person who uses violence ‘as an act of protection for herself and her children in order to contain the violence’.^[54] The ADFVC also indicated that ending CSA collection was an issue of concern.^[55]

12.52 The Procedural Instruction, Opting Out and/or Discharge Arrears also recognises that family violence is a ‘risk point’ when payees end CSA collection of child support payments and when payees end collection of child support arrears.^[56] In the ALRC’s view, payees ending CSA collection—including collection of arrears—should be an intervention point for identification of safety concerns and referral.

12.53 Opting Out and/or Discharge Arrears addresses referrals. When an election to end CSA collection has been made by a FTB-receiving payee, the CSA must encourage further discussions with Centrelink about the effects of the election, to support them in making an ‘informed choice’.^[57] Where CSA staff determine that family violence is an issue

and/or the payee is being coerced into making an election for private collection, ask if they would like to discuss their options of gaining an exemption from taking the reasonable maintenance action with a Centrelink Social Worker.^[58]

12.54 In relation to a payee’s election to end CSA collection of arrears, the Child Support Guide and Opting Out and/or Discharge Arrears also emphasise the importance of referring payees to Centrelink for advice regarding the consequences for FTB payments.^[59]

12.55 Although the CSA must accept a payee’s election to end CSA collection,^[60] Opting Out and/or Discharge Arrears provides that where family violence is identified, staff should ‘consider if it is appropriate to proceed with the private collect application’.^[61]

12.56 NLA has submitted that an election to collect privately, or end collection by the CSA, should, of itself, prompt family violence screening. It also stated that appropriate referrals should be made when screening leads to concern regarding the appropriateness of private collection.^[62]

12.57 The ALRC agrees, and also considers that existing CSA procedure regarding referrals to Centrelink social workers when payees end CSA collection of child support payments and arrears is appropriate. The ALRC recommends that this approach should be extended so that payees who receive no, or no more than the base rate of, FTB Part A are also referred to Centrelink social workers or other expert service providers. Expert service providers, in addition to providing the supports described above, may ensure payees understand that they have the option to re-elect CSA collection of child support when their safety concerns are addressed.

12.58 The ALRC also recommends that the CSA should take steps to identify family violence-related safety concerns when payees elect to end CSA collection. This should facilitate referrals to appropriate services where payees end, or consider ending, CSA collection of child support payments or arrears, as a result of safety concerns.