2.3.4: Child Support Years (Pre 1 July 1999)

Context

Child support periods were introduced from 1 July 1999. Before then, CSA made assessments that applied to child support years.

Legislative references

Section 5 Child Support (Assessment) Act 1989

Schedule 16 Child Support legislation Amendment Act 1998

Child Support (Adoption of Laws) Amendment Act 2000 (WA)

Child Support legislation (Transitional Western Australia) Regulations 2000 (WA)

Explanation

Before 1 July 1999 CSA made administrative assessments of the rate of child support for a period called a child support year. Child support years aligned with the financial year and ran from 1 July to 30 June. The last child support year ran from 1 July 1998 to 30 June 1999 (the 98-99 child support year).

The 'last relevant year of income' for a child support year is the financial year 2 years before the child support year. In most cases, this was the most recent tax assessment available when CSA made a new assessment. The last relevant year of income for the 98-99 child support year is the 96-97 financial year.

Each CSA assessment applied to a separate child support year. This did not mean that the rate of child support stayed the same for the whole child support year. The assessment could be amended to replace default incomes or to take account of various changes such as relevant dependants, changes in levels of care, estimates, etc. Some amendments applied retrospectively to the whole of the child support year (for example, changes to the parent's child support income arising from estimates or default income). Other amendments applied from the date of the change in circumstances, no matter when the parents advised CSA of that change (for example, new relevant dependants and changes in levels of care).

Transitional Arrangements for cases with liabilities that commenced on or before 1 July 1999

Transitional arrangements applied to child support cases with liabilities that started on or before 1 July 1999. For these cases the last assessment under the old 'child support year' arrangements ended on 30 June 1999. CSA made a new assessment under the 'child support period' arrangements to apply to a child support period starting 1 July 1999 and ending 30 September 2000.

The transitional provisions contained a special definition of the 'last relevant year of income'. Assessments for the child support period commencing 1 July 1999 are based upon parents' income for the financial year 1 July 1997 to 30 June 1998 (1997-1998) increased by an inflation factor.

The transitional provisions also required CSA to make a new assessment for these cases when either parent's 1998-1999 tax assessments issued. Up to and including 31 May 2000, CSA made a new assessment if:

• the payer's 1998-1999 tax assessment issued and CSA had not made a new assessment because the payee's tax assessment has previously issued; or
• the payee's 1998-1999 tax assessment issued; the payee's income could affect the rate of child support payable and CSA had not already made an assessment based on the payer's 1998-1999 income.

Western Australian ex-nuptial children cases

The pre-July 1999 rules continued to apply up to and including 31 December 2000 to cases where the payee and child reside in Western Australia and the payer and payee have never married each other (WA ex-nuptial cases). Special transitional arrangements applied to those cases.

CSA made new assessments of child support for WA ex-nuptial cases to apply to a 15-month child support period commencing on 1 January 2001. The last relevant year of income for these assessments was 1999-2000.

Special arrangements apply to WA ex-nuptial cases where the ATO had assessed neither parent's 1999-2000 taxable income before 16 December 2000. For those cases, the assessment for the child support period that started on 1 January 2001 was based upon the parents' 1998-99 taxable income. CSA made a new administrative assessment if the ATO issued the payer's tax assessment for the 1999-2000 year before 15 June 2001. If the ATO issued the payee's tax assessment for the 1999-2000 year before 15 June 2001, and before the payer's tax assessment, CSA made a new administrative assessment as long as the payee's income would affect the rate of child support. These assessments applied to a new child support period commencing on the first day of the month following CSA's assessment.

From 1 November 2007 the Assessment Act applies to all WA ex-nuptial children the same as it does to all other cases.

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Version 1.1

Issued 1 January 2008

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