Effective until 30 June 2008
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| CSA's previous online law & policy guide Effective until 30 June 2008 |
5.1.5: Payment periods and payment of child support debtsContext This topic covers payment periods and due dates for payment. It applies to periodic enforceable maintenance liabilities. Legislative references Sections 26A, 26B, 26C, 29, 66 Child Support (Registration and Collection) Act 1988 Regulation 5 Child Support (Registration and Collection) Regulations 1988 Explanation When CSA registers a periodic maintenance liability, it must calculate a daily rate payable under that maintenance liability. Depending on the payment period, it must also calculate a weekly, fortnightly, 4-weekly or monthly rate. The child support debt will be due and payable at particular periods depending on the payment period. This section outlines the following: Payment periods for voluntary payers Payment periods if child support debt is deducted from salary or wages When CSA registers a maintenance liability for collection it must also enter an initial payment period, if there is one. The initial payment period starts on the day the liability becomes payable to CSA and ends the day before the start of the first regular payment period (section 26C). CSA will calculate the amount owing for this period by multiplying the daily rate by the number of days in the initial period. It will notify the payer of the amount owing. After the initial period amounts are payable to the Commonwealth at the payment rate entered in the register. The payment rate will depend on the payment period determined by CSA and can be weekly, fortnightly, 4-weekly or monthly. The payment rate is calculated by multiplying the daily rate by the following number of days (section 29 and Regulation 5).The daily rate can be calculated by dividing the period of the liability by the number of days in that period.
A daily rate is rounded up to 5 decimal places by reference to the value of the 6th decimal place. Payment periods for voluntary payers A payer can elect to pay CSA directly rather than having their child support debt deducted from their wages. If so, they will have a periodic child support debt for a particular payment period. A payer may make an election to make it a different period. CSA will accept elections for payment periods to be either weekly, fortnightly, monthly or 4-weekly if it is satisfied this will be convenient for the payer (section 26B). Where CSA is not satisfied that the elected payment period would be convenient for the payer it will determine the payment period (section 26B(5)). Payment periods if child support debt is deducted from salary or wages If CSA uses employer withholdings to collect the child support debt the payment cycle will be the same as the payer's pay cycle. (See chapter 5.2 Administrative enforcement, topic Collection from salary and wages (employer withholding)). It can be a week, fortnight, 4 weeks or month. The first day of the first payment cycle will be determined by CSA and will be the start of the first payment period for which employer deductions will occur (section 26A). A child support debt for days in the initial period are due and payable to CSA on the 7th day of the month following that day (section 66(1)). However, if a liability starts, or is varied, after the 20th day of a month CSA will show the liability as being due and payable on the 7th day of the month after the following month. This takes into account the need to notify the payer of the new or varied liability. A child support debt for a payment period that is made by a voluntary payer is due and payable to CSA on the 7th day after the last day of the payment period (section 66(2)). Information about the due dates for payment by employers who have deducted a child support debt from an employee's wage or salary is contained in the topic 'Collection from salary or wages (employer withholding)'. (See chapter 5.2 Administrative enforcement) The payer is discharged from their liability to make payments directly to CSA to the extent of the amounts that the employer has deducted from their wages or salary (section 49(a)). The payer is required to pay any shortfall to CSA and this is due on the 7th day after the last day of the payment period (section 66(2)). Examples If the initial period covers the last 3 days of June and the
first 3 days of July, the payer must make a payment to CSA by 7 August.
If the Register states that the payer must pay $500 for each monthly pay period then they must make this payment by 7th of each month. If the Register states that the payer must pay $250 each fortnight and a fortnightly period ends on the 15 June, then they must make the payment to CSA by 22 June. Version 1.6 Issued 3 August 2007 |
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