Media Release
Monday 14 August, 2006
Court action reaps $22,000 'miracle'
Court action by the Child Support Agency has reaped more than $22,000 for two mothers and their children, CSA National Compliance Manager Angela Tillmanns said today.
"The man fathered children with both women, had a successful business, but had paid them only a fraction of what he owed in child support over several years," Ms Tillmanns said.
"Moments before he was to appear in the Federal Magistrates Court he handed to CSA officers a cheque for more than $22,000 to cover a large portion of his child support debt for both children."
"Another court date has been set to clear up the balance owing," Ms Tillmanns said.
One mother described the CSA's achievement as a miracle, given her former partner's history and attitude to paying child support.
"Miracles do happen," she wrote in a letter to the CSA. "I had given up hope of receiving one cent. For that reason I would like to sincerely thank the CSA, you and your staff and anyone else involved in the recovery of those arrears," she said.
Ms Tillmanns said the CSA collected $7.74 million during the 2005-06 financial year through court action.
"CSA will appoint an extra 24 litigation officers around the nation in the next few months, and will channel at least $8 million over four years from CSA's new $143 million compliance program to increasing litigation against parents with significant child support debt."
"From this investment by the Australian Government the CSA expects to collect an extra $7 million a year through court action against an additional 650 parents a year."
"And with close to a 100% litigation win rate, it's not surprising that about 95% of parents summonsed to court by the CSA pay either before the hearing or by entering into orders by consent."
Ms Tillmanns said the CSA's legal teams were not afraid to probe "behind the corporate veil", and now had expertise in unravelling hidden assets.
"Thankfully most parents do the right thing, and not every paying parent with a debt requires court action," Ms Tillmanns said. "But the CSA will take Australia's worst child support avoiders to court, and make sure they take responsibility for the support of their children."
On Saturday (August 5) the CSA launched a major recruitment campaign to increase its compliance staff by 120 financial investigators to focus on income minimisers.
"The CSA's increased compliance activity will recoup an extra $460million over four years in child support payments and recouped debt."
"As a result, it will become increasingly difficult for Australian parents to escape or overlook their child support commitments."
Media contact:
(07) 3001 4633; 0419 448 306.
Media enquiries should be directed to media@csa.gov.au
