Media Release
Tuesday 2 May, 2006
Crackdown on 419 child support minimisers
Investigations into 419 child support cases in the first 6 months of this financial year have resulted in an increase of $2,335,047 in child support for children.
Child Support Agency (CSA) General Manager Matt Miller, announced today the outcome of investigations by CSA into 419 cases where a parent's assets, financial resources,income or earning capacity was not accurately reflected by their taxable income.
Following one investigation, a parent who had been paying no child support now pays over $9000 per annum (see case study).
"Most parents do the right thing and pay their child support but where parents minimise their income and cheat their children out of the fair amount of child support CSA will investigate to determine the appropriate level of payment."
Mr Miller said "as part of the Child Support Scheme Reforms, the Australian Government has committed a further $143 million to enable CSA to further crack down on serious child support avoiders over the next four years."
CSA initiated investigation into a total of 419 cases during July-November 2005. In only 3 of 419 cases CSA determined that the formula assessment properly reflected the parent's capacity to pay child support.
Since these income minimiser investigations commenced there has been a total increase of $8,308,383 calculated as being payable for the benefit of the children of separated parents.
"This is an outstanding result for children, as well as the community. Separated parents have a responsibility to ensure the financial wellbeing of their children," Mr Miller said.
The Australian Government's fraud tip-off line provides the general public with a place to report suspected cases of fraud against CSA, Centrelink, Medicare Australia or the Pharmaceutical Benefits Scheme. If you suspect someone is misusing the system call 13 1524.
Case study:
Investigations determined that the paying parent who was assessed to pay no child support due to a low taxable income was rolling the majority of their income from a company into a self-managed super fund. The parent also had a number of unencumbered properties not including their residential property. The new child support assessment was based primarily on 'allowing' 9% (as per the superannuation guarantee) rather than the amount the payer was claiming. After the investigation this parent was assessed as being required to pay more than $9000 per annum in child support payments
Media enquiries:
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media@csa.gov.au
