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1999 legislative reforms
The introduction of the Child Support legislation in the late 1980's represented a significant administrative shift in the management of child support responsibilities.
It has had a significant impact on the amount of child support being transferred between parents. Before the Scheme was introduced it was estimated that only 30% of parents paid or received child support. The amounts of court orders often did not reflect either the costs of caring for children or parent's capacity to pay child support. Where a court order was in place, it frequently didn't provide for changes in circumstances of either parent or 'cost of living' adjustments. Changing an order was both costly and time consuming.
10 years later almost 1 million parents are using the Child Support Agency to assess, register or collect child support. In 1997-98 $1.2 billion was transferred between parents for the benefit of their children and about 90% of liabilities raised since the inception of the Scheme have been paid. An increasing number of parents (over 40%) registered with the Agency are paying and receiving their child support privately.
The most recent amendments to the legislation are a considered response to community concerns and representations and recognise the increasing acceptance in the community in general that children are the financial responsibility of their parents. A major effect of the package is to reduce unnecessary Government intrusion into people's lives particularly at times that are already stressful.
In brief the reforms are aimed at:
- improving the Scheme's flexibility
- providing greater equity
- providing more regular financial support for children.
This paper:
- provides a summary of the legislative amendments
- highlights those amendments which practitioners will need to be particularly aware of to effectively advise their customers
- highlights those amendments which will result in CSA taking some action which customers may turn to practitioners to seek advice about.
The amount of child support and how it is paid
Minimum child support liability of $260 a year
The minimum child support liability for all paying parents (including those receiving income support) will be $5 a week ($260 a year).
As with other child support liabilities, parents will be able to pay privately to the other parent or to the CSA. Where there is non compliance and the paying parent is in receipt of a social security benefit then Centrelink will deduct this amount from the benefit and transfer it to the Child Support Agency on a fortnightly basis.
Include additional amounts in the child support income
Calculation of child support assessment will include net rental property losses and exempt foreign income into taxable income for child support purposes. Adjustments to taxable income will be automatic, based on information contained in the parents' income tax return, and will not impose an administrative burden on parents.
In addition, from 1 July 2000 reportable fringe benefits will also be included in the income for child support purposes. If amendments to fringe benefits legislation proposed by the Government Tax Law Reform package do not come into effect prior to 1 July 2000, parents will be required to advise the Agency of their fringe benefit amount.
Increase the exempt income of child support paying parents
The paying parent 'exempt income' amount (which, for self-support purposes, is set aside from child support formula calculations) will be increased by 10%. In 1997-98 the new amount would be $9,907 for single paying parents and $16,525 (plus additional amounts for each child) for paying parents with natural or adopted children in their care.
receiving parents will receive less child support. However, this will lead to an increased rate of Family Payment in a significant number of cases.
Currently the exempted amount for the majority of paying parents is $9,006, a figure which is 'pegged' to the single pension rate at 1 January each year. paying parents with a dependent child have an 'exempt income' equal to twice the married rate of pension (currently $15,023 pa) plus additional amounts for each dependent child.
Increase the exempt income for parents sharing care of a child
The shared care formula operates when two parents both have between 40 and 60 per cent responsibility for the care of one or more children.
The exempt income amount for each parent with shared care of a child will be increased by adding additional amounts in the child support formula for each shared-care child.
The amounts for 1997-98 are:
- $1,888 for each child under 13;
- $2,639 for each child 13-15: and
- $3,756 for each child 16 and over.
For example, parents with shared care of two children under 13, who currently have an exempt income of $9,006, would each have an exempt income of $12,782.
This amendment goes some way to addressing the concern that a parent sharing care of a child needs a higher level of exempt income before being required to pay child support to the other parent.
Changes to the receiving parents disregarded income
The amount of a receiving parent's income which is disregarded in the child support formula will now be reduced by using a different Average Weekly Earnings figure as the basis for setting the receiving parent's disregarded income amount. The new figure will be based on 'all employees average total weekly earnings' instead of the full time employees average weekly earnings. For 1997-98, this would give a basic disregarded income amount of $29,598 compared with $37,424 under current legislation. It will now take less receiving parent income to reduce a paying parent's child support liability.
Child care costs will no longer be an automatic component of the child support formula but receiving parents may apply to depart from the administrative assessment if they incur high child care costs (exceeding 5% of their income).
The rate at which child support is reduced by receiving parent income above this new disregard level will be halved, i.e. for each dollar the receiving parent earns above the disregard amount the paying parents income will be reduced by 50 cents instead of the current dollar for dollar.
Change to family payment income test for paying parents with second families
paying parents with second families can claim 50% of any child support paid as a deduction from the household income used for determining the family's entitlement to Family Payment and Childcare Assistance.
This initiative addresses a current inequity in the Family Payment system, and reduces the financial stress suffered by low income families paying child support. It ensures that income assessed for Family Payment and Childcare Assistance purposes more closely reflects the income actually available to a family.
Consistency in treatment of family violence cases
The Child Support Agency will introduce case management to assist parents at risk of family violence to commence or continue child support collection wherever possible. The legislation will allow the Child Support Registrar to end the assessment and collection of child support while the customer is considered at risk.
Family violence cases where the receiving parent has been exempted from the requirement to obtain child support will be reviewed by Centrelink Social Workers to ensure that parents no longer at risk of family violence have the opportunity to obtain child support. This aspect of the reform package commenced in January 1998.
Changes to crediting of Non-Agency Payments
The Child Support Agency will accept payments made directly to the receiving parent or a third party where the paying parent and receiving parent intend the payments to be for child support even if there are no special circumstances. Non cash payments will be accepted as maintenance payments where the receiving parent and paying parent agree this is the case. In addition, up to 25% of the paying parent's monthly child support liability may be credited in relation to certain payments such as school fees, essential medical and dental fees and receiving parent rent without requiring the agreement of the receiving parent.
Removing the need for special circumstances to exist where the paying parent pays an amount to a receiving parent or to a third party and the acceptance of payments in a form other than money or by the transfer of property will improve the flexibility of the Scheme.
To protect receiving parents and meet the basic needs for children the Agency may, in certain circumstances, refuse to credit an amount.
Transfer of existing customers to private collection
Over 40% of CSA's customers already successfully pay and collect privately. Where CSA collects, 81% of liabilities accrued to date have been collected. Much of this money comes directly and voluntarily from paying parents. In recognition of this, the new legislation allows parents, by agreement, to undertake private collection of child support at any time.
When the CSA is satisfied that regular child support payments will continue, parents will be required to pay and collect future child support privately. This will not alter the amount of child support payable but will result in less Government intrusion in parents' lives as more separated parents take on the responsibility for supporting their children. The CSA will still issue annual assessments and make ongoing adjustments to the assessment when parents advise changes have occurred.
Where private collection is not successful, the CSA will operate as a safety net and recommence collection.
Assessment based on current taxable income
Calculation of child support assessments will be based on the most current taxable income available. As a result, an indexation factor will no longer be required except where parents fail to lodge a tax return.
The child support assessment will be updated immediately a more current income becomes available ie. on the issue of a new taxation assessment. Child support assessments will continue to be issued approximately annually but the timing will no longer be based upon the financial year.
Amend start date of liability
A child support liability will commence from the date of lodgement of the application for an administrative assessment. paying parents will benefit from a reduction in their child support payments of up to 28 days.
B. Streamlining administration
Objection and Appeal Rights
The Child Support (Assessment) Act 1989 will allow objection to a range of decisions previously only reviewable by the family court, including CSA decisions to depart from the formula assessment.
Where a parent is not satisfied with the objection outcome they will be able to apply to the Family Court for a decision.
Variations to Assessments
The process to depart from an administrative assessment will be enhanced through various changes, including:
- The Registrar may initiate the review of an assessment
- The provisions for exchange of information between parents will ensure that each parent has a copy of information provided by the other
- The Registrar may make a decision to either increase or decrease child support based on the information provided
- The Registrar may refuse to make a determination without requiring a hearing
- Both parents may appear and be heard at a hearing, even though they have not provided a formal response
Additionally:
- guidelines are being produced to ensure decisions made in the process are accurate and consistent; and
- forms have been re-designed to ensure parents understand the importance of providing correct information.
More Equitable Administration
The Child Support legislation has been amended in the following areas to reduce the administrative complexity of the Scheme:
- Debts can be offset between parents.
- Changes in circumstances will be accepted verbally and electronically as well as in writing.
- The names and dates of birth of relevant dependent children will no longer be shown on notices of assessment.
Flexibility for Differing Customer Circumstances
There are a number of changes aimed at improving the flexibility of the Scheme in dealing with individual customer circumstances:
- Either parent may apply for a child support assessment
- The due dates for payment of child support are flexible, tailored to the paying parents pattern of income receipt
- Child support assessments will be determined based on both the factual and lawful daily care of the child
- The Registrar may hold monies in trust where a paying parent applies to court under section 107 of the Child Support (Assessment) Act 1989 for a declaration that the applicant for child support was not entitled to an administrative assessment
- The Registrar may reject an estimate of income
- The date of lodgement for estimates of income will be extended to 31 July 1999.
Treatment of Step-children and Secondary Students
A further two changes have been made to the Child Support (Assessment) Act 1989 to provide more equity for parents in determining the amount of child support payable.
A step-child will be deemed to be a relevant dependent child where the court has made an order under Section 66M of the Family Law Act 1975. Assessments can, on application from the receiving parent, continue until the end of the school year in which a child who is undergoing full time secondary education turns 18.
The amount of child support and how it is paid
For practitioners and customers
As a legal practitioner you will have a working knowledge of the inter-relationship between family law and the legislation administered by the Child Support Agency. The following points provide more detail on some of the amendments that may be relevant in providing advice to your customers.
The definition of relevant dependent child will include a step-child where a court has made an order under section 66M of the Family Law Act 1975.
The exempted income of a paying parent includes an allowance for a relevant dependent child. The definition of relevant dependent child will be expanded to include a step-child where a paying parent has a legal duty to maintain that child by virtue of an order under s66M.
Previously a paying parent could only have applied for a departure for assessment on the basis of their duty to maintain that child. The parent will need to notify CSA so that the assessment can take such a step-child into account.
If a court order or registered parenting plan is contravened the parent contravening the order or plan is taken to have a level of care as specified in the order or plan only.
Where the actual level of care is contrary to a court order then child support will only be payable to the extent of the lawful care, i.e. the non-complying person is not entitled to make any claim for child support in excess of their lawful entitlement. This will mean, for example, that where a court order provides for a child to spend half of the time with each parent and one parent prevents the other from exercising their shared care, then child support will be payable on the basis that the care is shared. Naturally, the parent will need to advise CSA that care is contrary to a court order.
Where one person has more care and another less care than provided for in the court order and it is difficult to resolve which party is causing the order or plan to be contravened, the Registrar will provide an assessment based on the court order. The Registrar cannot determine or rule on disputes as to care.
Parties must go through the objection process prior to proceeding to court
By providing for objections to decisions of the Registrar parents now have a less costly method of review than that currently provided by the court. The introduction of this process brings the Assessment Act into line with much other Commonwealth legislation in providing an opportunity for parties to formally seek an internal review of decisions.
If the Registrar makes a decision and a parent is dissatisfied with that decision they may ask the Registrar to reconsider that decision (i.e. object). The Registrar will make a decision within 60 days. If either parent is aggrieved by that decision they may make an application to the court.
Substantial contact can also be considered when another person has the child for less than 30% of the nights but both parties agree that the other person has substantial contact.
Substantial care is established where a parent has, or will have, care of a child for between 30% and 40% of the nights in a child support period.
In certain care arrangements the parents may consider the care to be substantial without it including more than 30% of nights in the period. Where parents agree this is the case then the assessment will be issued on the basis that there is substantial contact. If parents do not agree then the number of nights will be the determining factor.
A receiving parent can request a liability be extended past a child's 18th birthday where that child is at school in the year they turn 18.
A carer will be able to apply for an assessment to continue until the end of the school year in which a child turns 18. This does not extend until the child completes their education. If a child is not in their final year of school when they turn 18, an order under section 66L of the Family Law Act can be sought for periods not covered by a child support assessment. Under section 66L a court may make a maintenance order for a child over 18 if satisfied that it is necessary to enable a child to complete his or her education.
If a child leaves school but then returns to school as a full time secondary student before attaining the age of 18 a carer can apply for an assessment to continue to the end of the school year.
If a child leaves school before turning 18 and returns to school as a full-time secondary student after turning 18, the 18th birthday would already have been a terminating event in relation to the assessment. Therefore, the receiving parent would not be entitled to apply for an assessment after the child has turned 18 as the child is no longer an eligible child.
If a child leaves school after turning 18, but before the end of the school year, a terminating event would have occurred at either the 18th birthday or on the last day that the child was in full-time secondary education. If a child returns to school at a later stage, but prior to the end of the school year, the carer would not be able to apply for an assessment.
Approximately 10,000 assessments or agreements have children who will turn 18 during the 1998-99 year. It is important that the parent makes an application to the CSA prior to the students 18th birthday.
The effect of changes in care arrangements will apply only from the date the Registrar is notified of the change
If a parent does not notify the Registrar of a change in level of care then the assessment will be adjusted from the time the Registrar is either notified or otherwise becomes aware of that change. Both parents are aware of the level of care provided to their child(ren) and it is important, particularly for the paying parent, to advise CSA as soon as a change occurs.
Relevant dependent children will be included in the assessment from their date of birth where the paying parent notifies the Registrar within 28 days of that date. Notification outside that date will result in amendment to the assessment from the date of notification.
Often the knowledge of this type of change is only available to the paying parent. Delays in notifying the CSA often leads to overpayments for receiving parents, without their knowledge. It is important for parents to understand that they should notify CSA of changes as quickly as possible. The Registrar advises parents of their responsibilities when cases are registered, however parents may forget this over the years.
Where a parent has not provided information regarding a relevant dependent child within the time period required they may be entitled to apply for a departure from the administrative assessment
Changes to Non-Agency Payments (NAP's)
a. NAP's will be credited where both parents intended the payment be paid towards child support and the receiving parent or paying parent applies for the amount to be credited
Previously the Registrar had to be satisfied that special circumstances existed in order to accept such payments. The amendments have removed the need for special circumstances.
b. Both parents can agree a form of payment other than in money e.g. a transfer of property, be treated as a NAP
Where both parents intend such a transaction to be in satisfaction of a child support liability then the Registrar will credit that amount. The value attributed to the non cash maintenance will be as agreed by the parents, however if the parents cannot agree on the value then the Registrar will determine the amount to be credited against the child support.
c. Paying parents can pay up to 25% of their child support on certain items without requiring the agreement of the receiving parent
Where a paying parent has made an approved non-agency payment and pays at least 75% of their child support liability in each month then the payment will be credited. If the amount is greater than 25% of the monthly liability it will be credited in subsequent months until the total of the payment is exhausted.
Regulations define an 'approved payment' as payment for:
- fees charged at the school or pre-school of the eligible child
- essential medical and dental fees
- receiving parent rent, including bond
- receiving parent rates, including body corporate charges
- receiving parent mortgage
- receiving parent utilities
- receiving parent child care costs, and
- receiving parent motor vehicle costs including registration, insurance, service, tyres, repairs and panel beating.
It is important for the paying parent to advise the CSA as soon as possible after such payments are made.
The Registrar will be able to restrict the use of this provision where, for example, there is domestic violence or the provisions are being used mischievously.
paying parents can apply for an administrative assessment
A liable parent may lodge an application and start paying in accordance with that application however only the carer can ask the CSA to collect the money. Parents should always keep records of payments made and received for child support - this will assist in resolving any future queries either party may have.
If a person has a child support liability then 50% of the child support paid will be taken into account when determining eligibility for family payment.
Under previous rules, any child support received by a parent in receipt of more than the minimum rate of family allowance was counted under the maintenance income test and could reduce their family allowance. However, child support paid by a family allowance recipient (or their partner) was not deducted from their income.
When a paying parent forms a new family and there are dependent children, entitlement to family allowance may arise. An amendment to the Social Security Act now allows for 50% of any child support paid by a paying parent to be deducted from their family allowance income when calculating the amount of family allowance payable. It is important for the paying parent to make application to Centrelink. This change took effect from 1 January 1999.
High child care costs incurred by the receiving parent as a reason for departure
The fact that the formula disregards much less of a paying parent's income than a receiving parent's income has long been criticised by both lobby groups and Government members. Basically the receiving parent 'disregarded income' level is higher than the paying parent's exempt income because the receiving parent is already sharing their income and assets with the children in their household.
Under the new legislation child care costs will no longer form an automatic component of the child support formula. Instead, where:
- the child care costs are incurred by the receiving parent are in relation to a child younger than 12 at the start of the child support period,
- the paying parent is not an eligible carer of any of the children in the care of the carer, and
- the total of the child care costs are more than 5% of the carer's child support income for the child support year, a receiving parent may apply for a departure from the assessment.
This approach is consistent with the situation where a paying parent has high costs to enable contact with his or her children. To avoid delays in this taking effect it is advisable to apply for a departure from the assessment as soon as notification of the assessment is received.
If paying parent's income is less than $260 per year they can apply for an exemption from the minimum liability
The only basis on which the Registrar can reduce a liability to nil is where the paying parent's income will be less than $260 for the child support period. This is not restricted to taxable income and includes:
- any money earned, derived or received by the person for their own use or benefit, or
- a periodical payment by way of gift or allowance.
It is expected this will only be the case where the liable parent does not have any source of funds and is dependent upon another person, e.g. a spouse or parent.
Any receiving parent may undertake private collection at any time
There will no longer be a requirement for the paying parent to have a satisfactory payment record before a receiving parent in receipt of a social security payment can elect to undertake private collection. There will also no longer be a limit placed on the number of times that the receiving parent can undertake private collection.
Parents will make their own arrangements for the payment and receipt of child support and will be encouraged to keep receipts and records. Where a 'Low Income Non Enforcement Period' is in place a receiving parent cannot elect to move to private collection.
Where payment is not made a receiving parent may apply for the liability to again be enforced by the Registrar.
An estimate of child support income commencing on or after 1 July 1999 will be for the balance of the child support period.
If a parent has a drop in income and tells the Registrar straight away, it is fair to both parents for the new child support assessment to apply only from the time the parent suffered the drop in income. There is no need to change the assessment for any earlier period because the parent was providing child support according to their capacity to pay at that time.
A parent will estimate their income for the remainder of the child support period. The assessment based on the income will commence on the date the estimate is lodged and lasts up to the end of the child support period, unless an income tax assessment issues in the meantime.
Estimates of child support income must include a supplementary amount
Child support income is now determined by adding back to a person's taxable income any rental property loss and exempt foreign incomes. This is termed 'supplementary amount'. From 1 July 2000 the supplementary amount will also include employer provided fringe benefits.
A person may make an estimate where their child support income is at least 15% less than that used in their assessment. That estimate must include any supplementary amount.
paying parents can elect to pay their child support in accordance with a nominated period in accordance with their pay cycle.
Previously payment of a child support liability was due on the seventh day of the following month irrespective of a paying parent's pay cycle.
Under the new legislation a paying parent can elect to pay in accordance with a nominated payment period. That amount will be due within 7 days of the end of the payment period. This will allow parents to pay in a cycle which is consistent with their pay days. A paying parent cannot, however, elect to use a cycle which is less frequent than each calendar month.
Employers will not be required to forward deductions to the Registrar more frequently. Amounts deducted during a month will still have to be paid to the Registrar by the 7th of the following month. At this stage, there will be no change to how frequently the receiving parent's receive their maintenance payments.
CSA initiated actions
I would now like to outline another group of changes contained in the reform package. This group consists of actions largely initiated by the Agency. Your customers may well seek advice on the effect of such changes.
Private collection
The Registrar may require parents to undertake private collection once a satisfactory payment record has been established, and in the view of the Registrar payments are likely to continue. A satisfactory payment record would be six months. The Registrar can only require parents to undertake private collection if a satisfactory payment record has been established. This means that a liability must have been registered for collection for a period of at least six months and there are no arrears owing on the case.
The receiving parent will not have the discretion to reject this method of payment. However, where the paying parent does not make payments the receiving parent can apply for CSA to again collect the child support including arrears.
It is currently the decision of the receiving parent whether to request that the CSA collects the child support or whether it can be paid by the paying parent directly to the receiving parent. Many paying parents resent the use of the CSA and want to be able to demonstrate that they will meet their obligation to pay child support. This amendments gives paying parents that opportunity. As a result it also places responsibilities on both parents.
If the paying parent does not make payments when they are due it is likely that the CSA will be requested to resume collection. To prevent this from occurring the paying parent should ensure payments are made by the due date. If a paying parent cannot make payment it is advisable for the paying parent to contact the CSA to discuss any options which may be available, such as lodging an income estimate.
If payments are not received it is advisable for the receiving parent to contact the CSA as soon as possible. This will ensure that family payments are not adjusted if child support is not received. In addition, CSA can only collect 3 months of arrears unless there are special circumstances.
Only the number of any relevant dependant children in each age group will be shown on the notice of assessment.
paying parents and their new families often complain about notices of assessment including details unnecessary for the purposes of the notice i.e. names and dates of birth of relevant dependent children of the paying parent. As only the age of a relevant dependent child affects the assessment, notices will no longer include the names of relevant dependent children or their precise birthdates.
Based on figures compiled up to 30 June 1997, 52,827 cases involve one or more relevant dependent children.
Start Date Of Liability will be the date the application is received by the Registrar
This amendment recognises that improvements in processing applications and improved customer contact mean that backdating of assessments is no longer necessary and is in fact inappropriate. A parent will not get less child support under this change. However, it is important that an application for administrative assessment is lodged as soon as possible after separation. An application can be lodged at any CSA or Centrelink office.
The Registrar can suspend payments to a receiving parent once advised that an application under section 107 has been lodged
Where an application for administrative assessment has been accepted by CSA and the paying parent disputes that he or she is liable to pay child support, an application can be made to the Family Court for a declaration that he or she is not in fact a person from whom child support may be sought.
Once the Registrar is advised that a paying parent has made an application to the court the Registrar may suspend the receiving parent's entitlement to the money collected from the paying parent. The Agency must continue to collect from the paying parent but that money will be held pending the decision of the court. If the court determines person is not liable to pay child support then the money will be refunded to the paying parent. As the money has not been paid out to the receiving parent then the receiving parent will not be in the position where he or she has to repay monies. If the court determines there is a child support liability then the money will be paid out to the receiving parent.
Again, it is important for the paying parent to notify CSA if an application is made to the court under section 107.
Change to the process to depart from an administrative assessment
The Registrar may initiate a departure in special circumstances
Where the Registrar is satisfied because of information obtained or received that an assessment does not accurately reflect a parent's income then the Registrar may decide to initiate a departure. Both parents will be advised of this decision and will be provided with a summary of the information on which the Registrar has made the decision to initiate a hearing. Both parents have a right of reply and may attend the hearing.
The Registrar may make a determination to increase or decrease child support based on the information provided
Previously the Registrar was able to make a determination only in the terms sought in the application. If an application was made for an increase in the assessed rate then the Registrar could not decide, on the basis of the information provided by both parties, that in fact a decrease in the assessed rate was appropriate. The Registrar was restricted to refusing the application in the absence of a cross application.
The Registrar may refuse to make a determination without a hearing being required
The legislation was previously unclear as to whether the Registrar was required to provide a hearing to an applicant prior to refusing their application. Now, for example, where there are no new grounds in the application the Registrar may refuse the application without a hearing.
Deductions from social security pension and benefits of $10 per fortnight
An amount of $5 per week may be withheld by Centrelink from any benefit. The deduction from benefits can be made in respect of any child support debt, whether due before or after the commencement of this section. The amount of the deduction cannot be more than $5 per week.
Assessment based on current income
The Registrar will make a new assessment as soon as either parents most recent tax assessment becomes available. This means there will no longer be a child support year equivalent to the financial year but a 'child support period'.
A child support assessment is intended to reflect parent's current financial capacity to support their children. The most important measure of capacity to pay is the income of each parent. The more recent the income details are, the better they will be at indicating a parent's capacity to pay. A child support period will start on issue of a new income tax assessment and end either on the issue of a new tax assessment or 15 months whichever is the earlier. The period of 15 months allows for the lodgement of tax returns.
Under the new method, as soon as a more recent taxable income becomes available, a parent's child support assessment will be updated.
Example:
A parent lodges their 1998-99 tax return in July 1999, the Tax Office issues the tax assessment in August 1999 and the parent is given a new child support assessment, to apply from September 1999. Thus, the income details used in the parent's child support assessment are only two months old.
In contrast to the above example, under the current method taxable income disclosed in the parent's 1999 tax assessment would not be used until 11 months later in their 2000-01 child support assessment.
The Registrar may reject an estimate where satisfied it does not accurately reflect income
The Registrar will reject an estimate of income where satisfied, on the basis of information held by the Registrar, that the estimate is incorrect. It may be that the Registrar is aware the person making the estimate has recently lost their job and has not included in their estimated child support income an eligible termination payments etc. A person making the estimate will be notified of the decision of the Registrar and may object to that decision.
Conclusion
Legislation which received Royal Assent in December 1998 gives effect to the package of reforms to the Child Support Scheme which were announced by Government in 1997. The changes are many and varied and will impact on the amount of child support paid and received by parents and also on how the Scheme is administered by the Child Support Agency.
The changes provide for greater flexibility in the Scheme but also create a number of responsibilities for parents in managing their child support arrangements. Practitioners will be better able to assist parents once they understand the legislative changes and the impacts of them on depending on parent's circumstances.
Assistance in understanding and applying the reforms can be obtained from your local Child Support Agency.
