2.6.18: Would a change be otherwise proper

Context

A decision to change an assessment must be 'otherwise proper'.

Legislative references

Section 117(5) Child Support (Assessment) Act 1989

Regulation 12A of the Family Law Regulations 1984

Explanation

CSA must consider whether it is 'otherwise proper' to make a particular decision when considering an application for a change of assessment (section 117(5)). The impact of the decision on government expenditure (for pensions and benefits) has to be considered.

CSA must consider:

The nature of the duty of a parent to maintain a child and, in particular, the fact that it is the parents of a child who have the primary duty to maintain the child; and
the effect that any proposed change would have on the child or payee's entitlement to an income-tested pension, allowance or benefit.

A payee who receives more than the base rate of Family Tax Benefit Part A can receive a certain amount (a threshold amount) of child support from the payer before this affects their rate of payment. Increasing the annual rate of child support will reduce government outlays. Reducing the assessment will increase government outlays on Family Tax Benefit, and CSA must consider whether this would be appropriate (or 'otherwise proper') in the particular case.

Even if parents agree about the rate of child support that should be paid a change to an assessment may not be 'otherwise proper'.

Also, if there are administrative remedies (e.g. estimates of income, non-agency payments) available to the parents it will not normally be 'otherwise proper' to change an assessment.

Example

A payer, F, has made payments to the payee, M. F later applies for a change to the assessment based on those payments. F has not applied to have those amounts credited as non-agency payments.

If the amounts were credited as non agency payments M is shown as having received those amounts and any amount of Family Tax Benefit Part A at more than base rate would be reduced accordingly. However, if CSA reduces the assessment by the amount of the payments M is not shown as having received the amounts and may receive a higher payment of Family Tax Benefit. The overall contribution that M makes to the support of the children would be the same, but in the latter case, M would receive more Family Tax Benefit. The decision to change to the assessment is not 'otherwise proper'.

CSA must not only consider the amount of the change to the assessment but also the duration of any decision in working out if it is 'otherwise proper'. It may be appropriate to make a short-term decision so the parents can consider an agreement or make other arrangements to reorganise their financial circumstances. It may not be 'otherwise proper' to maintain a change to an assessment for an extended period.

Version 1.3

Issued 24 December 2005

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