Why the Child Support Scheme is changing
On 29 December 2003, a government inquiry into child custody arrangements in the event of family separation made a number of recommendations about the Child Support Scheme. The recommendations, which were outlined in the report, Every picture tells a story: Inquiry into child custody arrangements in the event of family separation, included a major review of the Child Support Scheme.
In 2004, the Australian Government formed an independent Ministerial Taskforce on Child Support and Reference Group to review the Child Support Scheme. The Taskforce reviewed Australian and overseas research on the costs of children, and considered other factors such as households with different income levels, different numbers of children and children of different ages.
The Ministerial Taskforce released a report called In the Best Interests of Children - Reforming the Child Support Scheme (downloadable below).
- In the Best Interests of Children - Reforming the Child Support Scheme - Summary Report and Recommendations of the Ministerial Taskforce on Child Support - PDF (283kb)
- In the Best Interests of Children - Reforming the Child Support Scheme - Report of the Ministerial Taskforce on Child Support - PDF (1.5Mb)
The report found there was a need for a greater emphasis on shared parental responsibility and the importance of both parents remaining actively involved in their children's lives after separation.
The report also recommended replacement of the current fixed percentage of income used to work out child support payments with a new way of calculating payments based on their findings about the costs of raising children.
Taskforce and Reference Group members had expertise in a variety of areas, including social and economic policy, family law, post-separation parenting and relationships. Some members also represented child support customers.
Following this review, the Government announced in February 2006 that it would introduce reforms to the Child Support Scheme to reflect changes in Australian society since the Scheme was established in 1988.
So, what's changing?
The new Child Support Scheme will aim to better balance the interests of both parents and be more focused on the needs and costs of children. This aims to:
- reduce conflict between parents about parenting arrangements
- encourage shared parental responsibility, and
- ensure child support is paid in full and on time
Under the new Child Support Scheme:
- child support payments will be calculated based on Australian research into the actual costs of children
- the combined income of both parents will be used to calculate child support payments, treating the income of both parents in the same way
- both parents' contributions to the cost of their children through care and contact will be recognised, and
- children of first and second families will be treated more equally.
An online tool to help you work out your approximate child support payments under the new system is expected to be finished and and available early in 2008.
How is the Scheme changing?
The changes are being released in three stages: