Overdue child support payments
We can enforce payment of outstanding child support amounts if you use Child Support Collect.
Addressing a child support debt
You need to address any debts as soon as possible.
Reasons why a child support payment may be overdue include:
- the payment was late or not paid
- the assessment changed and now you owe more money, or
- the receiving person asks us to collect an unpaid amount from a Private Collect period
You may also not have told us about a change to your circumstances.
It's important you tell us about any changes to your circumstances as soon as they happen. If you don't, we may not be able to backdate the change.
If you're a paying parent and you miss a payment, you need to catch up as soon as possible.
If you can't pay in full, propose an amount you can pay immediately to reduce your debt. We might also accept instalments. Use the statement of financial details for debt repayment form to help you assess your financial situation.
If you can't make up the payment, you need to contact us.
If you don't contact us or we can't make an arrangement with you, we'll actively try to recover the overdue child support for the benefit of your child.
Late payment penalties
If you don't make your payment in full and on time, we may apply penalties on the amount of outstanding child support. You'll pay the penalty amount to the Australian Government - not to the receiving person. If you pay the overdue child support, we may remit the penalty amount. This means we may reduce or remove the penalty from your child support account.
Recovering overdue child support
We have powers under legislation to recover overdue child support through the following ways.
If the paying parent refuses to pay child support or agree to a suitable payment arrangement, we can make their employer deduct child support from their pay.
Enforcing tax return lodgment
If you pay or receive child support you must lodge a tax return. If the Australian Taxation Office (ATO) says you don't need to lodge one, you may still need to lodge a 'non-lodgment' advice with them. Read about if you need to lodge a tax return on the ATO website.
Intercepting tax refunds
Most paying parents pay tax in Australia. We may use a tax refund to meet an outstanding child support payment. This may still happen when you have a payment arrangement in place. Call us before you lodge your tax return if this would cause you hardship.
Issuing overseas travel bans
If a paying parent has overdue child support, refuses to work with us to pay it and plans to travel overseas, we can stop them with a Departure Prohibition Order.
This is an administrative order that prevents them from leaving Australia until they pay the overdue child support or agree to a suitable payment arrangement.
We don't need a court order to prevent them from leaving Australia.
We can take paying parents to court to collect outstanding child support if other enforcement methods don't work, and there’s an asset or income stream in the paying parent's name.
We may prosecute for serious actions or omissions involving criminal behaviour.
Bank account deductions
If a paying parent refuses to pay child support or agree to a suitable payment arrangement, we can make their bank deduct lump sum payments from their account.
Income support payment deductions
We can recover unpaid child support from an income support payment or payment from the Department of Veterans' Affairs.
Working with third parties
In some situations, we work with other organisations and third parties to recover unpaid child support.
Investigating unpaid child support
We match data from other sources and act on tip offs to identify customers whose income doesn't match their lifestyle. If you're dishonest about your income, we can find out about it and you may have to pay more child support or repay it.
- income from the cash economy - for example, cash in hand can be common in building and other industries
- income that's not salary or wages - for example, business or investment income
- corporate veils, such as companies, trusts or partnerships, which hide or reduce taxable income and reduces child support obligations, and
- legitimately reducing taxable income and fringe benefits - we can use these amounts to calculate a more accurate child support assessment
In serious cases, we can use optical surveillance to investigate complex avoidance arrangements.
We encourage you to report suspected fraud if you have information you think will help us collect unpaid child support. For example if:
- you know a parent with overdue child support payments plans to travel outside Australia, or
- you believe there's income we don't know about