Child Support (Assessment) Amendment Regulations 2004 (No. 2) 2004 No. 177
EXPLANATORY STATEMENT
Statutory Rules 2004 No. 177
Issued by the Authority of the Parliamentary Secretary to the Minister for Family and Community Services
Child Support (Assessment) Act 1989
Child Support (Assessment) Amendment Regulations 2004 (No. 2)
Section 164 of the Child Support (Assessment) Act 1989 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted to be prescribed by the Act, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 66A of the Act provides that the Child Support Registrar may reduce an assessment of child support payable by a person to nil where that person's annual income is less than $260. For the purposes of determining whether to make such a reduction, paragraph (b) of the definition of 'income' in subsection 66A(4) provides that certain prescribed payments are not to be regarded as income. Regulation 7CA of the Child Support (Assessment) Regulations 1989 (the Principal Regulations) prescribes payments for this purpose. One such payment currently prescribed by regulation 7CA is a pension paid to a veteran as specified under section 24 of the Veterans' Entitlements Act 1986 (VEA).
The purpose of the proposed Regulations is to amend the Principal Regulations to ensure that payments under the new Military Rehabilitation and Compensation Act 2004 (MRCA) will receive the same child support income treatment as the equivalent payments that are contained in the VEA.
The MRCA and the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (the Consequentials Act), both received Royal Assent on 27 April 2004. They give effect to a new military specific compensation scheme to meet the special circumstances of service in the Australian Defence Force (ADF). The MRCA will apply where injury, disease or death is due to ADF service on or after 1 July 2004. Under Part 6 of Chapter 4 of the MRCA, certain persons who have suffered one or more service injuries may be paid a Special Rate Disability Pension.
The general principle underpinning the transitional amendments contained in the Consequentials Act is that payments under the new MRCA will receive the same social security, family assistance and child support income treatment as the equivalent payments that are contained in the VEA.
Consequently, it is necessary to amend regulation 7CA of the Principal Regulations by inserting a reference to a special rate disability pension paid to a person under Part 6 of Chapter 4 of the MRCA.
The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.
The Regulations commenced on 1 July 2004.
Overview
The Child Support (Assessment) Amendment Regulations 2004 (No. 2) were enacted to address a specific gap in the treatment of pensions under the Child Support (Assessment) Act 1989. This gap arose from the introduction of the Military Rehabilitation and Compensation Act 2004, which established a new military-specific compensation scheme, and required corresponding adjustments to existing child support regulations. The Regulations were issued under the authority of the Parliamentary Secretary to the Minister for Family and Community Services, and their primary policy objective is to ensure that payments under the new Military Rehabilitation and Compensation Act 2004 receive the same treatment in child support assessments as equivalent payments under the Veterans' Entitlements Act 1986. This ensures consistency and fairness in the child support system by treating similar types of pensions equally, regardless of the source of entitlement.
Scope and Application
The Child Support (Assessment) Amendment Regulations 2004 (No. 2) are designed to align the treatment of military compensation payments under the new Military Rehabilitation and Compensation Act 2004 with those under the existing Veterans' Entitlements Act 1986 for the purposes of child support assessments. This amendment ensures that individuals who receive a Special Rate Disability Pension under the new Act are afforded the same consideration as those receiving equivalent pensions under the old Act when their child support liability is calculated. The Regulations apply to individuals who receive such pensions and who are subject to child support assessments under the Child Support (Assessment) Act 1989. The application of these Regulations is national in scope, aligning with the federal nature of the child support legislation. There are no specific exclusions, exemptions, or thresholds outlined in the explanatory statement, although the applicability of these Regulations is contingent on the individual's receipt of the specified pensions and their involvement in child support assessments. The Regulations themselves do not extend or restrict the application of the Act but rather provide specific details necessary for its implementation.
Key Provisions
The Child Support (Assessment) Amendment Regulations 2004 (No. 2) were introduced under section 164 of the Child Support (Assessment) Act 1989. These regulations amend the Child Support (Assessment) Regulations 1989 to ensure that payments under the Military Rehabilitation and Compensation Act 2004 (MRCA) receive the same child support income treatment as equivalent payments under the Veterans' Entitlements Act 1986 (VEA). Specifically, the regulations insert a reference to a special rate disability pension paid under Part 6 of Chapter 4 of the MRCA into regulation 7CA of the Principal Regulations. This amendment ensures that certain pensions for veterans and ADF personnel are not considered income when assessing child support obligations.
The regulations impose specific obligations on those who administer child support assessments. They require that payments under the MRCA be treated in the same way as payments under the VEA for the purposes of determining child support liability. This means that the Child Support Registrar must disregard special rate disability pensions under the MRCA when calculating the income of a person for child support purposes. The regulations ensure consistency in the treatment of pensions for both veterans and ADF personnel, thereby aligning child support assessments with the broader policy intent of treating equivalent payments consistently.
Breaching the requirements set out in these regulations could lead to incorrect child support assessments, potentially resulting in overpayments or underpayments of child support. While the Act does not specify explicit penalties for such breaches, incorrect assessments could lead to administrative or legal consequences, such as the need to repay overpaid amounts or face enforcement actions. The regulations are designed to ensure compliance with the overarching objective of accurately assessing child support by treating equivalent payments consistently, thereby avoiding such repercussions.