3.5.3: Orders applying the assessment formula

Context

A court order or court-registered agreement may require payment of child support at a rate worked out using the provisions of the Assessment Act.

Legislative references

Sections 4 and 17 Child Support (Registration and Collection) Act 1988

Part 5 Child Support (Assessment) Act 1989

Explanation

A court may make an order under the Family Law Act that says the periodic amount of child support is to be worked out by reference to the Assessment Act. These orders are made in cases where a child support assessment cannot be made under the Assessment Act as the parents, or the child, do not meet the eligibility requirements of that Act.

An order which merely states that the Assessment Act or Part 5 of that Act is to apply does not contain sufficient information for CSA to calculate a periodic amount. Nor does an order which says CSA is to work out the rate of child support, but does not specify how CSA should do this.

Example

'M is to pay F such amount as is determined by the Child Support Agency.'
This order does not contain sufficient information for CSA to work out a periodic amount payable to the payee and is not a registrable maintenance liability.

'M is to pay F an amount determined by the Child Support Agency using the formula in the Assessment Act.'
This order contains sufficient information for CSA to work out a periodic amount payable to the payee and is a registrable maintenance liability.

It is important to note that when CSA registers a court order that applies the Assessment Act formula it is not making an assessment under Part 5 of the Act.

CSA will calculate the periodic amount when it registers the order by applying the basic formula contained in section 36(1) of the Assessment Act. CSA will not apply the modifications to the formula contained in Division 2 of Part 5 of the Assessment Act (shared or divided care, high income cap, carer's child support income amount and disregarded income amount, 2 liable parents or 2 or more carers) unless the order specifically requires this. CSA will determine the payer's child support income amount under Subdivision A of Division 3 but the remaining provisions of Division 3 (the estimate provisions) cannot apply.

The provisions of the Assessment Act that require CSA to make new assessments at the start of new child support periods do not apply to orders under the Family Law Act. CSA will only vary the periodic amount if this is specifically required by the terms of the order, and the order states how it is to be done. Otherwise, the amount originally calculated will apply for as long as the order is in force. A parent wishing to change his or her liability due to a change in circumstances must apply to a court for a variation of the order.

Example

M and F separated in 1987. F has a court order made 17 May 1997 which says:

'M to pay maintenance to F for the child A.
The Assessment Act formula is to apply.
The liability is to be calculated annually, based on the M's income for the last financial year.
Each year the amount payable for the period 17 May to 16 May in the next year is calculated, based on the payer's taxable income for the previous year.'

This is a registrable maintenance liability and CSA will review the amount payable each year.

Version 1.0

Issued 1 October 2002

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