1.2.2: Amendments to the Assessment Act

Context

The Assessment Act has been amended since it commenced on 1 October 1989.

Legislative references

Social Security and Veterans' Affairs Legislation Amendment Act (No 3)1989

Child Support (Assessment) Regulations 1989

Child Support (Assessment) ACT 1989

Child Support Legislation Amendment Act 1990

Child Support Legislation Amendment Act 1992

Child Support Legislation Amendment Act (No 2) 1992

Child Support Legislation Amendment Act 1995

Social Security Legislation Amendment (Family Measures) Act 1995

Family Law Reform (Consequential Amendments) Act 1995

Statute Law Revision Act 1996

Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997

Income Tax (Consequential Amendments) Act 1997

Child Support Legislation Amendment Act (No 1) 1997

Social Security Legislation Amendment (Parenting and other Measures) Act 1997

Social Security and Veterans' Affairs Legislation Amendment (Budget and other Measures) Act 1998

Child Support Legislation Amendment Act 1998

A New Tax System (Fringe Benefits Reporting) Act 1999

Public Employment (Consequential and Transitional) Amendment Act 1999

Federal Magistrates (Consequential Amendments) Act 1999

Child Support Legislation Amendment Act 2000

Child Support (Assessment) (Overseas-related Maintenance Obligations) Regulations 2000.

A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No 2) 1999

A New Tax System (Family Assistance and Related Measures) Act (No 2) 2000

Family Law Amendment Act 2000

Child Support Legislation Amendment Act 2001

Family and Community Services Legislation Amendment (Application of Criminal Code) Act 2001

Child Support Legislation Amendment (Reform of the Child Support Scheme - Initial Measures) Act 2006

Families, Community Services and Indigenous Affairs Legislation Amendment (Child Support Reform Consolidation and Other Measures) Act 2007

Explanation

Stage 2 of the child support scheme started with the commencement of the Assessment Act. From 1 October 1989, CSA could accept applications for an administrative assessment of child support from carers of eligible children. The Assessment Act has been amended from time to time since then. Full details of the amending acts are provided above. The significant changes are listed below.

From 6 April 1992

From 11 December 1992

• CSA can choose an appropriate default income when making a new assessment for a person whose taxable income for the last relevant year is not available. (Before 11 December 1992, CSA was required to use a default income figure equivalent to 2.5 time average weekly earnings.)

From 1 July 1993

• A person who cares for a child between 30% and 40% of the nights in a child support year is now considered to be an eligible carer, with 'substantial contact'. The other person caring for the child has 'major contact'. The formula provisions are modified to give effect to this change.
• A payer or payee can no longer revoke their estimate of taxable income unless they made a new estimate election. (Before 1 July 1993 a parent could revoke their estimate and have their case return to the previous assessment based upon their income 2 years prior.)
• A parent can make a new estimate for a child support year every 2 months instead of 3 months.
• Penalties apply for parents who underestimate their taxable income.

From 29 May 1995

• CSA can be satisfied that a person is a child's parent if one of a number of ' presumptions' apply.
• CSA must refer a child support agreement to the Secretary of DSS if the payee receives more than minimum family payment or Sole Parent Pension. CSA can only accept these agreements if the Secretary decides that the agreement passes the 'reasonable action to obtain maintenance' test.
• CSA must refuse to accept an agreement if the payee has not applied for a child support assessment and receives more than the minimum family payment or Sole Parent Pension.

From 22 July 1997

• CSA can now be satisfied that a person is a parent of a child if:
  • the child is born within 44 weeks of the annulment of that person's marriage; or
  • the child is born after a marriage has been dissolved but within 44 weeks after a period of cohabitation by the 2 people concerned; or
  • the child is born to a woman who lived with the man anytime during the period beginning 44 weeks and ending 20 weeks before the child's birth.

From 23 December 1997

• A parent's election to use an estimate of their taxable income has a limited retrospective effect.

From 1 July 1999

• Payers and payees can object to CSA decisions under the Assessment Act.
• Parents can now provide information and make some applications over the telephone, which CSA previously required in writing.
• A liable parent can apply for a child support assessment.
• A child support assessment starts from the date the application was lodged with CSA (previously backdated up to 28 days).
• Child support assessments are based on both the factual and lawful daily care of the child.
• A payee can apply for a child support assessment for a child in secondary education to continue to the end of the school year in which the child turns 18.
• CSA can include relevant dependant children in a child support assessment from the date of notification unless the Registrar is notified within 28 days of the child becoming a relevant dependant child, or within 28 days of a notice of assessment.
• Changes to levels of care of a child will have effect from the date the Registrar is notified of the change.
• Payees who receive more than the base rate of Family Tax Benefit Part A can elect to end their assessment if the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) approves the election. The Secretary must be satisfied that the payee is taking reasonable action to obtain maintenance for the child.
• A payer's step-child is considered to be their relevant dependant if a court has made an order under section 66M of the Family Law Act 1975.

Changes to the COA process

• CSA can make a decision to either increase or decrease the amount of child support payable when making a decision on a change of assessment application.
• CSA can initiate a change of assessment in special circumstances (this is referred to as a Registrar initiated change of assessment).
• A payee can apply for a change of assessment if they incur child care costs of more than 5% of their child support income amount.

Changes to estimate provisions

• The final day for a parent to lodge an estimate of their taxable income for the 1998-1999 child support year was extended to 31 July 1999.
• A payer or payee's estimate of taxable income for a child support period commencing on or after 1 July 1999 can only affect their child support assessment prospectively.
• CSA can refuse, review or amend a payer or payee's estimate of taxable income.

Changes to the formula assessment provisions

• The payee's disregarded income is based on the 'all employees average weekly earnings' figure rather than the usually higher average weekly earnings figure and extra amounts according to the age of the children for whom child support is payable were no longer added to it.
• The payer's exempt income amount is increased to 110% of the unpartnered rate of social security pension.
• When the liable parent has relevant dependant children, the exempt income amount is increased to 220% of the annual amount of the partnered rate of social security pension.
• The minimum child support rate payable is $260 (previously zero).
• CSA can reduce a $260 assessment upon application from the payer, where the person's total income in the first 12 months of a child support period is less than $260.
• In calculating the amount payable in an assessment the payer's liability is reduced by 50 cents for every dollar of the carer parent's income above the disregarded income amount.
• Any supplementary income (exempt foreign income, net rental losses) is added back to the liable parent's taxable income amounts. Reportable fringe benefits are included from 1 July 2000.
• When the parents share care of the children of a relationship, additional amounts are added to the liable parent's exempt income for any children in their sole, major or shared care.

Changes to the assessment period and income used

• Child support is assessed in child support periods rather than child support years. A child support period may last up to 15 months.
• Child support assessments are based on the taxable income for the most recent taxation year rather than taxable income for the financial year before last. CSA no longer uses an inflation factor to adjust a parent's taxable income.
• Transitional arrangements applied for all existing cases. CSA made a new child support assessment for the child support period starting 1 July 1999, based upon the parents' taxable income for 1997-98, modified by an inflation factor. CSA made another new assessment when the payer's 1998-99 tax assessment issued before 1 June 2000, or if the payee's 1998-99 tax assessment issued first and the payee's income would affect the rate of child support.

From 3 May 2000

The Assessment Act was amended to allow Australia to give effect to its international obligations in relation to maintenance.

From 30 June 2001

• A payer or payee can apply for change of assessment if they are earning additional income for the benefit of resident children.
• A non-parent carer is not considered an eligible carer for a child whose parent or guardian does not consent to the non-parent carer providing care for the child.
• A parent can apply to a court for an order for departure from administrative assessment (section 116), or appeal against an incorrect assessment (section 110), or appeal against the acceptance or non acceptance of a child support agreement (section 132) if they disagree with CSA's decision on the other parent's objection.

From 2 August 2001

• CSA can disregard amenity allowances or gratuities paid to prisoners, disability support pensions paid under social security law and totally and permanently incapacitated pension paid to a veterans under Veterans' Affairs law when considering an application for the minimum annual rate of child support to be reduced to nil.

From 1 July 2006

• The annual minimum rate of child support is increased to $320 (indexed each year to the Consumer Price Index).
• The high income cap for payers is reduced to 2.5 times the annual equivalent of all employees average weekly total earnings (EAWE).
• The circumstances under which a parent's income can be increased for child support assessment purposes because CSA decides that the parent has a higher earning capacity are more limited.

From 1 January 2007

• A payee is able to apply directly to a court if CSA has refused their application for assessment because they were unable to satisfy CSA that the person named is a parent of the child or children.
• CSA is unable to make change of assessment decisions that affect a period more than 18 months earlier than the date of the application unless the court has granted leave. If a court grants leave it can specify a period for which an assessment can be changed of up to seven years prior to the application, and may hear the application itself.
• If a court grants a declaration that a person is not a parent of a child (under section 107), the court must, as soon as practicable, consider making an order for repayment of child support to the person who is not the parent of the child.

From 22 June 2007

• Some changes to the secrecy provisions including the following:
  • CSA can communicate protected information to persons as necessary to prevent a credible threat to the life, health or welfare of a person.
  • CSA can communicate protected information to brief the Minister in respect of a range of circumstances relating to the Minister's duties.
  • CSA can communicate protected information to a person who has the consent of the person to whom the information relates to obtain that information.
  • CSA can communicate protected information in specific circumstances relating to missing people and locating a relative or beneficiary of a deceased person.
  • A new offence for unauthorised disclosure of information.
• Removal of the restriction that CSA information gathering (under section 161) in respect of third parties is limited to financial information.
• Stay order provisions have been removed from the Assessment Act. All of the stay order provisions are located within the Registration and Collection Act regardless of whether the relevant proceeding has commenced under the Assessment Act or the Registration and Collection Act.

From 19 July 2007

The Assessment Act was amended to incorporate measures relating to Australia's international obligations in relation to maintenance - these measures were previously contained in separate regulations. There were also minor amendments to the legislation as follows:

• An application for assessment can only be accepted where at least one party resides in Australia. A terminating event occurs in relation to a child support assessment if both parties cease to be resident in Australia.
• An application for assessment from a payee who is resident in a reciprocating jurisdiction must be made through the central authority in the country where the payee resides. The application may be initiated by the payee and given to the central authority to forward to the Registrar, or may be initiated by the central authority.
• An application for assessment from a payer who is resident in a reciprocating jurisdiction may be made by the payer giving an application directly to the Registrar, or by giving an application to the central authority to forward to the Registrar.
• Where the application was initiated by a central authority on behalf of the payee, the central authority has power to veto the ending of the assessment by the payee.
• A child support agreement may be made between parents, one of whom is resident in a reciprocating jurisdiction.
• A registered maintenance liability ceases to have effect if a second maintenance liability is registered in relation to the same child, payee and payer. The Registrar is able to refuse to accept an application for an Australian child support assessment that would override an overseas liability already registered.
• Provisions relating to determining overseas income apply in relation to a payee who is resident in a reciprocating jurisdiction but is covered by an Australian child support assessment.
• There are some increased time allowances in relation to various processes where one party to a maintenance liability is resident in a reciprocating jurisdiction. Generally these increased time allowances apply only to the party who is resident in the reciprocating jurisdiction.
• The date from which an overseas maintenance liability first becomes enforceable is the date that the Registrar receives the application for registration.

From 1 January 2008

• The definition of an income amount order narrowed which provides customers increased opportunity to lodge an estimate of income.
• Alteration of estimate provisions to allow customers to lodge an estimate for the remainder of the child support period, after an income amount order expires.
• Customers can apply to extend the time a relevant dependant child is taken into account in their child support assessment until the end of the school year if the child will turn 18 during that year and is still in full-time secondary education.
• A payer is able to have their relevant dependant child taken into account in their child support assessment from the date the assessment started if they advise CSA within 28 days of the notice of assessment being issued to them and where the notice is issued after 4 December 2007.
• The rental property definition updated.
• Assessment notices amended to include only age range of relevant dependant children and liable children from other cases.

Version 1.5

Issued 1 January 2008

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