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Child Support
The child support scheme is operated by the Child Support Agency (CSA) which is part of the Australian Tax Office. Its role is to collect financial payments from parents in support of their children. Traditionally, this has occurred by court order or agreement. The scheme has calculated amounts payable by a formula since the introduction of the Child Support (Assessment) Act 1989.
The system has been and continues to be overhauled. The changes are designed to make a fairer and more balanced system. The reforms commenced in July of 2006 and are to be finalised with the last stage being introduced on 1 July 2008. Some of the major changes include:
- increasing the minimum rate from $260.00 to $320.00 per week;
- reducing the upper limit on income taken into account from 2.5 times the average weekly total earnings (AWE) to 2.5 times all employees average weekly earnings (EAWE);
- providing a statutory test to be applied when determining the earning capacity of a person;
- increasing the proportion of child support that may be provided as non-agency payments from 25% to 30%.
If you have not provided the CSA with your up to date details, you should do so immediately so they may reassess your personal circumstances according to these changes.
Usually, child support will be payable by a liable parent who is responsible for a child through biology, adoption or assisted reproductive technology. The liable parent continues to be responsible until the child turns 18 years of age or they complete their secondary schooling. Alternatively, should the child enter into a romantic relationship where they are financially supported, the liable parent is no longer required to pay child support.
Either party may seek a departure order of an administrative assessment of the amount of child support payable. Grounds for seeking a departure order include:
- eligibility for assessment is disputed
- where the particulars of the assessment are incorrect
- special circumstances justify departure, for example, (a) complex nature of parents or children’s finances (b) special needs of the child (c) high cost of travel for access and (d) other necessary commitments of either parent
- where parents want child support in a form other than cash
- where questions arise about child support agreements
- where urgent maintenance or stay orders are needed.
The changes introduced in January 2007 allows for the Social Security Appeals Tribunal (SSAT) to externally review objections. This form of external review is said to be faster, less formal, less expensive yet still providing just and fair outcomes.
The SSAT reviews decisions from a Registrar about objections and not granting extensions of time for lodging objections. The tribunal conducts an inquisitorial process which is said to reduce the tension between separating parents.
If you would prefer to avoid a large degree of interference in your private matters, an alternative might be a private agreement. Such agreements allow parents to make private arrangements for the financial support of their children. The agreements must still be lodged with the CSA but once lodged they have a similar effect to a Consent Order.
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