2.8.6: Terminating events

Context

CSA must end a child support assessment if a 'terminating event' happens.

Legislative references

Sections 5,12, 22, 54, 74, 151 and 151C Child Support (Assessment) Act 1989

Regulation 4 Child Support (Assessment) Regulations 1989

Regulation 6 Child Support (Assessment) (Overseas-related Maintenance Obligations) Regulations 2000

Explanation

The various 'terminating events' are listed in section 12 of the Assessment Act. CSA must end an assessment to take into account a terminating event (section 74).

In relation to a child, a terminating event happens if the child:

dies;
ceases to be an eligible child under a child welfare law (section 22 and regulation 4);
turns 18 (unless CSA has accepted an application for the assessment to continue after a child turns 18);
is adopted;
becomes a member of a couple (living with a person of the opposite sex on a genuine domestic basis or with someone they are legally married to, section 4(1)); or
is no longer present in Australia, an Australian citizen, or ordinarily resident in Australia (except where Australia's international maintenance arrangements apply). (See chapter 1.6 Overseas cases)

In relation to a carer, a terminating event happens if the carer:

dies; or
ceases to be an eligible carer (section 5).

In relation to a liable parent, a terminating event happens if the liable parent:

dies; or
ceases to be a resident of Australia (except where Australia's international maintenance arrangements apply).

In relation to a child and the parents (in relation to that child) a terminating event happens on a specified day if:

the carer makes an election to end an assessment for the child from a specified day (section 151); or
CSA has accepted an agreement in relation to the child in which the parents agreed that the liability to pay child support is to end from a specified day (See chapter 2.5).

Date of effect of a terminating event

CSA must end an assessment from the date of the terminating event, regardless of the date that CSA was notified of the terminating event (section 74).

Date of effect of a terminating event in relation to the care of a child

A child support assessment must end if a parent entitled to receive child support for a child ceases to be an eligible carer of that child (section 12(2)). A parent ceases to be an eligible carer when they cease to provide ongoing daily care for a child, or where the ongoing daily care that they provide amounts to less than 30% of the nights in the first 12 months of a child support period. CSA will end the child support assessment for that child from the date the parent ceases to be an eligible carer.

Example

M has a child support assessment payable by F on the basis that M has sole care of A. A goes to live with F and F applies for a child support assessment payable by M. As F now has sole care of A, CSA ends M's child support assessment from the day A left M's care.

In some cases the actual date may be difficult to determine, because the parents both believed that contact would occur in a particular way, which did not eventuate. If so, CSA will end the assessment for the child from the day in the first 12 months of the child support period beyond which it was not possible for the parent have substantial contact with the child.

Example

M and F are A's parents. M is liable to pay child support to F on the basis that F has substantial contact with A, and M has major contact. The child support period ends on 30 November 2005. M contacts CSA on 23 August 2005 and advises that A has only stayed with F for 60 nights since the start of the child support period (1 September 2004). F confirms the information.

CSA decides that F ceased to be an eligible carer on 14 July 2005, which is 49 days before the end of the first 12 months of the child support period. Even if A spent every remaining night with M from that date, this would not add up to 110 nights (30%) in the first 12 months of the child support period.

Reconciliation is not a terminating event

A payee doesn't cease to be an eligible carer (section 5) if parents reconcile. Where parents reconcile both parents are principal providers of ongoing daily care for the child/ren. (Rocca v Corelli (1998) FLC 92-794).

Where parents are satisfied that they have genuinely reconciled, the payee, or carer, can elect to end the assessment. See 'Electing to end an assessment' below.

Version 1.3

Issued 1 July 2006

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