3.5.2: Orders discharging late payment penalties

Context

A court exercising family law jurisdiction may not make an order discharging late payment penalties payable to CSA. If a court does make an order of this type, CSA is not bound by the terms of the order, but will consider remitting any penalties.

Legislative reference

Sections 67, 68, 85, and 95 Child Support (Registration and Collection) Act 1988.

Administrative Decisions (Judicial Review) Act 1977

Explanation

A court exercising family law jurisdiction has no power to deal with late payment penalties. Despite this, CSA sometimes receives court orders made in proceedings between parents that direct CSA to reduce or remit late payment penalties. CSA is not obliged to give effect to an order that is invalid. However, CSA will consider whether it is appropriate to remit the late payment penalties the order purports to discharge. CSA will take into account any evidence produced to the court about the payer's financial position when deciding if there are special circumstances that make it fair and reasonable to reduce or remit the late payment penalty (section 68(c)). Chapter 5.1 CSA collection, heading Late Payment Penalties

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Version 1.0

Issued 1 October 2002

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