Effective until 30 June 2008
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| CSA's previous online law & policy guide Effective until 30 June 2008 |
2.3.2: When do child support periods start?Context CSA must make new assessments at particular times. A new assessment starts a new child support period. Legislative references Sections 7A, 31, 34A, 34B, 34C and 93 Child Support (Assessment) Act 1989. Explanation CSA must make new assessments at particular times during a case. These assessments will apply to new child support periods that start at the times listed below. Accepting an agreement that starts a new case Accepting an agreement on an existing case After the end of a child support period CSA must make an assessment as quickly as practicable after it has accepted a new application for child support (section 31(2)). The child support period for this assessment starts on the day that the parent made the application for child support (section7A(2)(a)). There is an exception for an application for a new child in an existing case. In these cases, CSA will amend the existing amendment to take account of the new child. It will not make a new assessment that applies to a new child support period. Accepting an agreement that starts a new case CSA must make an assessment as quickly as practicable after it has accepted an agreement that starts a new case (section 93(2)). The assessment will apply to a child support period that starts on the day that the liability to pay child support starts (section 7A(2)(b)). This date will depend upon the date of the application for acceptance, the date of the agreement, and the terms of the agreement (section 93(1)(g)). This is explained in chapter 2.5 Agreements heading 'Date of effect where child support is not already payable'. Accepting an agreement on an existing case CSA must make a new assessment immediately after it accepts an agreement in an existing case if the agreement affects the rate of child support payable (section 34B). The assessment will apply to a child support period that starts on the day that the rate of child support changes in accordance with the agreement (section 7A(2)(c)). CSA makes an assessment when the ATO issues a tax assessment for one of the parents CSA must make a new assessment when a tax assessment issues for either parent for the latest financial year that ended during the existing child support period (exceptions detailed below)(section 34A). CSA must do this as soon as it is practicable after the ATO issues the assessment (section 34A(2)). CSA has a business rule that it is practicable to make an assessment in the month that the tax assessment issues if it issues on or before the 15th of the month. If the tax assessment issues after the 15th CSA will make the assessment in the following month. CSA's new assessment applies to a child support period that starts on the first day of the month following the month in which it was made (section 7A(1)(d)). Exceptions - tax assessments which will not require CSA to make a new assessment CSA may not be required to make a new child support assessment when the ATO issues a tax assessment for the latest year of income that ended during a child support period in the following circumstances:
The first exception is where the tax assessment is for a payee and it could not affect the rate of child support payable because it is below the exempt or disregarded income levels, or because the payee is not a parent of the child (section 34A(3)). The other parent's tax assessment for that year has already started a new child support period The second exception is where other parent's tax assessment for that year has already started a new child support period. CSA will have used a default income when it made the assessment for the parent whose tax assessment had not yet issued. When the parent's tax assessment subsequently issues for the same year it does not trigger a new assessment. The tax assessment is not for a financial year that ended during the current child support period. CSA will amend the existing assessment by replacing the default income. The assessment continues and applies to the same child support period. Assessment based on a change of assessment decision, court order or agreement The third exception is where a departure decision, court order or agreement is in place that does not use the parent's taxable income to work out the rate of child support (section 34A(4)). If the agreement, departure decision or court order ceases at some time during the existing child support period, CSA is required to make a new assessment when the tax assessment will affect the rate of child support. CSA makes a new assessment in the last calendar month of the agreement, departure decision, or court order to apply to a period that starts on the first day of the following month (section 34A(2)). Most agreements, court orders and departure decision will end on the last day of the month. If not, the assessment will revert to the formula using the last relevant year of income for the current child support period until the last day of the month. CSA's new assessment using the later year of income will apply to a period that commences on the first day of the month after CSA makes that assessment (section 34A(2)). Current child support period ending in the same month The fourth exception is where the existing child support period will finish before the end of the month in which the tax assessment issues. In these cases, a new child support period starts on the day after the end of the current child support period, rather than the first day of the next month (section 34A(5)). Tax assessments that issue in June for the previous financial year CSA will make a new child support assessment whenever the ATO issues a tax assessment that triggers a new child support period. The tax assessment will usually provide CSA with the parent's child support income amount for the last relevant year of income for the new child support period. The exception is where CSA makes a new child support assessment in June to apply to a child support period that starts on 1 July (e.g. when ATO issues a tax assessment for 2000-2001 in June 2002). The last relevant year of income for that new child support period will be the financial year after the year of the tax assessment. For these cases, CSA will make a new child support assessment based upon a default child support income amount for the last relevant year of income for both parents. When the ATO issues each parent's tax assessment for the last relevant year of income, CSA will amend the child support assessment from the start of the child support period (replacing default income with actual income). Can CSA start a child support period retrospectively under section 34A? If CSA missed making a new assessment when a parent's tax assessment issued, it cannot make a retrospective assessment (section 34A(2)). CSA will make a new assessment at the earliest appropriate time. The new assessment will have prospective effect from the first day of the following month. If a new financial year has started before CSA discovers the error, it will not be able to make a new assessment under section 34A. After the end of a child support period CSA must make an assessment before the start of a new child support period if it has not already made an assessment for one of the reasons listed above. If CSA has not made an assessment before the start of a new child support period it must do so as soon as practicable after it starts (section 34C). The child support period for this kind of assessment will start on the first day after the day the earlier child support period ended (section 7A(2)(d)). Version 1.0 Issued 1 October 2002 |
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