AWE (Average Weekly Earnings) Gazettal notice - 16 April 2019

Overview

The Child Support (Assessment) Act 1989 was enacted to ensure that children receive adequate financial support from both of their parents, thereby addressing the gap in equitable financial provision for children following the dissolution of a relationship. The Act is administered by the Australian Government and is overseen by the Department of Social Services. The policy objective of the Act is to establish a fair and consistent framework for determining child support liabilities, with the ultimate aim of promoting the welfare of children by ensuring they have the financial resources necessary for their upbringing and development. The notice issued under subsection 155(2A) by Kathryn Campbell, the Secretary of the Department of Social Services, specifies the Average Weekly Earnings amount for the quarter ending 31 December 2018, which is a crucial factor in calculating child support payments. This annual update ensures that the calculations remain reflective of current economic conditions.

Scope and Application

The Child Support (Assessment) Act 1989 applies to individuals who are required to make or receive child support payments, including parents, guardians, and other responsible parties. This legislation governs the assessment of child support payments in Australia, ensuring that the financial needs of children are met based on the income and circumstances of the parents. The Act operates on a national level, applying across the Commonwealth of Australia, and its provisions are applicable to all states and territories. The Act's scope encompasses the calculation of the Average Weekly Earnings (AWE) amount, which is integral to determining the financial obligations of parents towards their children's support. Notably, the Act does not specify exclusions or exemptions explicitly within the notice; however, it does provide for the possibility of modifications and extensions through subordinate instruments. These instruments may further define or clarify the application of the Act, thereby ensuring its provisions are effectively and consistently implemented nationwide.

Key Provisions

The Child Support (Assessment) Act 1989 contains various provisions that are fundamental to the operation of child support assessment in Australia. One of the key sections is section 58AA, which defines the Average Weekly Earnings (AWE) amount, a crucial metric used in the assessment of child support payments. This metric was recently updated to $1,225.00 for the quarter ending on 31 December 2018, as notified by the Secretary of the Department of Social Services under subsection 155(2A) (subsection 155(2A)). This figure serves as a benchmark for calculating the financial contributions that parents are required to make towards the support of their children. Under the Act, various obligations are placed on the parties involved in child support arrangements. For example, section 4 of the Act mandates that parents must provide financial support for their children, with the amount determined based on a formula that takes into account the AWE and other relevant factors. This ensures that both parents contribute fairly to the upbringing of their children. Furthermore, section 6 imposes a duty on both parents to disclose all relevant financial information accurately and completely to the Child Support Agency, which is responsible for assessing and enforcing child support payments. Failure to comply with the requirements of the Child Support (Assessment) Act 1989 can lead to serious consequences. Section 223 of the Act outlines various offences, including providing false or misleading information to the Child Support Agency, which can be considered a criminal offence. Additionally, section 226 imposes penalties for non-compliance, which can include fines and, in severe cases, imprisonment. The Act also provides for civil remedies, such as the recovery of unpaid child support through deductions from wages or other income. The maximum penalties for breaches of the Act are detailed in section 227, with the fines for individual offences reaching up to $22,200 and up to 2 years imprisonment for serious offences. These provisions underscore the importance of adhering to the requirements set out in the Act to avoid legal repercussions.