Private collect:

The Child Support Agency registers the agreement but the process of transferring a payment is managed between parents. This agreement is “encouraged” by DHS-CSA but it’s not supported by NCSMC. DHS assumes 100 per cent of payments that occur within a Private Collect Agreement, that the child support is paid on-time and in full. Once moved to a Child Support Collect, DHS-CSA will only collect the last three months of debt. Please note that if you are the payee you can seek to change to a child support collect agreement unilaterally (without the support or permission of the payer).

Child Support Collect:

DHS-CSA using a formula will work out the child-support payment (as per Private Collect) and it is their role to collect and transfer the payments.

Child-support and Family Payments:

There is a direct relationship between Child Support and Family Tax Benefits, it is known as the Income Maintenance Test (IMT). The IMT sets the level at which family assistance is received once the assessed level of child support is taken into consideration. If you do not have a registered child-support agreement and or an exception from collecting child-support the family tax benefits will be paid at a ‘minimum base rate’.