Agency collect
Agency collect is one of two basic administrative options for collecting child support payments. Services Australia collects and monitors payments on behalf of the receiver at no fee to either parent.
Key takeaways for parents
Agency collect is the default arrangement when the receiving parent applies for child support. It simply means Services Australia will handle all the admin involved with payment collection.
- Services Australia keeps track of payments and pursues any non-payment on behalf of the receiving parent; and
- Parents no longer need to deal directly with each other over payment collection matters.
The arrangement does not change how child support is calculated. It only changes how payments are collected, recorded and transferred.
Agency collect definition
In an agency collect arrangement Services Australia is responsible for collecting and transferring the amount of child support that is payable for a child support case.
Where the person who applied for child support is the payee, agency collect is the default arrangement that applies when the liability starts unless the payee elects for a private collection arrangement.
Where the person who applied for child support is the payer, private collection is the default arrangement that applies when the liability starts unless the payee elects for an agency collect arrangement.
When Services Australia receives a payment from or on behalf of a payer, that amount will be disbursed to the payee in accordance with the disbursement cycle rules in the CSRC Act.
Definition source: Guides to Social Policy Law, Child Support Guide, Agency collect.
Collection after calculation
Agency collect does not affect how child support is calculated. The assessment is the same regardless of whether agency collect or private collect is used.
Agency collection applies after the assessment has been worked out. The collection method determines how payments are made, recorded, and transferred between parents.
Payments by the payer
The payer makes child support payments to Services Australia instead of paying the other parent directly. Payments are made for past periods and can usually be scheduled weekly, fortnightly, or monthly.
Services Australia provides a payment schedule or notice setting out what is due. If payments are missed or fall behind, Services Australia can use stronger collection methods, including deductions from wages.
Payments to the payee
The payee receives child support payments from Services Australia rather than directly from the other parent. Services Australia records incoming payments and transfers the amounts it collects under its disbursement cycle.
Agency collection reduces the need to follow up unpaid or late payments directly with the other parent. Where payments fall behind, Services Australia can take steps to recover the unpaid amounts.
Should you use private collect as the alternative?
Private collect is the alternative arrangement where parents transfer payments directly between themselves. Services Australia still calculates the child support amount in the same way.
Private collect can work where payments are consistent and there is no dispute. If problems arise, the payee can switch to agency collect. However, Services Australia will generally only collect up to 3 months of unpaid child support from a private collect period.