Child Support (Assessment) (AWE amount) Determination 2022

Administered by Department of Social Services

Legislation au F2022L00540 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

 

Issued by the authority of the Minister for Families and Social Services

 

Child Support (Assessment) Act 1989

 

Child Support (Assessment) (AWE amount) Determination 2022

 

Purpose

The Child Support (Assessment) (AWE amount) Determination 2022 (‘the instrument’) determines an amount under subsection 58AA(4) of the Child Support (Assessment) Act 1989 (the Child Support Assessment Act).

The amount determined in the instrument on the advice of the Australian Statistician, will be taken to be the trend Average Weekly Earnings (AWE) amount for the December quarter 2021, in accordance with subsection 58AA(5) of the Child Support Assessment Act.

Determination of an AWE amount is necessary for child support assessment purposes because the publication of trend estimates for the AWE series, ordinarily published by the Australian Statistician, has been suspended since 2020 due to the impact of the COVID-19 pandemic on the labour market. The Minister is able to make the instrument because the Australian Statistician did not publish the ‘Average Weekly Earnings – Trend – Persons – All employees total earnings’ figure for the December 2021 quarter by the end of 31 March 2022.

Background

The AWE amount can be used to determine a parent’s Adjusted Taxable Income (ATI) for the last relevant year of income where the taxable income from the last relevant year of income has not been assessed, but the taxable income from the previous year of income, or from an earlier year of income, has been assessed. The AWE amount is used to apply the ATI indexation factor to account for the growth in earnings between the year the parent lodged their last tax return and the last relevant year of income.

The Australian Statistician has temporarily suspended publication of the trend estimates for the AWE series as a result of the impact of the COVID-19 pandemic, although various other wage statistics, including seasonally adjusted figures, continue to be published. Without an AWE amount the Child Support Registrar would not have a basis to determine some provisional incomes for the last relevant year of income, for possible use in assessments beginning from 1 July 2022. In consultation with the Australian Statistician, an alternative amount that accurately approximates the trend has been determined to ensure children of separated parents continue to share appropriately in the standards of living of their parents in line with the intent of the child support policy, notwithstanding the extraordinary circumstances that have arisen due to the COVID-19 pandemic. 

Where parents are concerned that their income for the last relevant year of income is not accurately reflected in their child support assessment, they can update their income details by lodging their tax return for that year of income, or by providing updated income details to Services Australia so their child support assessment can be updated. Late lodgement of tax returns may affect the date from which the new income details can be reflected in the child support assessment.

The instrument is a legislative instrument subject to disallowance.

Commencement

The instrument will commence the day after it is registered on the Federal Register of Legislation.

Consultation

Consultation was undertaken with the Australian Statistician and the Australian Bureau of Statistics to determine an AWE amount that approximated the AWE trend figure. Consultation was also undertaken with Services Australia, who will implement the determined figure.

Regulation Impact Statement (RIS)

Following consultation with the Office of Best Practice Regulation, a RIS is not required for the instrument (OBPR ID OBPR22-01737).

Availability of merits review

Should a parent disagree with the income details in their child support assessment, they remain able to seek merits review internally under Part VII of the Child Support (Registration and Collection) Act 1988 (Registration and Collection Act), and externally by the Administrative Appeals Tribunal, under Part VIIA of the Registration and Collection Act.

Explanation of the provisions

Section 1

This section provides that the name of the instrument is the Child Support (Assessment) (AWE amount) Determination 2022.

Section 2  

 

This section provides that the instrument commences on the day after it is registered on the Federal Register of Legislation.

 

Section 3

 

This section provides that the instrument is made under subsection 58AA(4) of the Child Support Assessment Act.

 

Section 4

 

This is the definition section of the instrument. In the instrument, “Act” is defined as the Child Support Assessment Act. 

 

There is a note that the term “December quarter” is defined in subsection 58AA(1) of the Child Support Assessment Act.  Subsection 58AA(1) provides that the “December quarter” of a year of income means the quarter ending on 31 December of that year.

 

Section 5

 

This section determines the amount of $1,328.90 as the AWE amount for the December quarter of the year of income ending on 31 December 2021, based on advice from the Australian Statistician that the published AWE seasonally adjusted figure is appropriate as an approximation of the trend figure.

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Child Support (Assessment) (AWE amount) Determination 2022

The Child Support (Assessment) (AWE amount) Determination 2022 (‘the instrument’) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the legislative instrument

The instrument determines an amount under subsection 58AA(4) of the Child Support (Assessment) Act 1989 (the Child Support Assessment Act).

The amount determined in the instrument, as advised by the Australian Statistician, will be taken to be the AWE amount for the December quarter ending on 31 December 2021, in accordance with subsection 58AA(5) of the Child Support Assessment Act.

Determination of an amount that is taken to be the AWE amount is necessary for child support assessment purposes because the publication of trend estimates for the Average Weekly Earnings series, ordinarily published by the Australian Statistician, was suspended due to the impact of the COVID-19 pandemic on the labour market.

Human rights implications

The instrument engages the following rights:

  • Right to respect for family – Article 23(4) of the International Covenant on Civil and Political Rights (ICCPR), and

 

  • Right of every child to an adequate standard of living – Article 27 of the Convention on the Rights of the Child (CRC).

Right to respect for family

The instrument engages Article 23(4) of the ICCPR, which states that appropriate steps should be taken to ensure equality of rights and responsibilities of spouses as to marriage, during marriage and at its dissolution.  Further, the article states that ‘in the case of dissolution [of marriage], provision shall be made for the necessary protection of any children’. The Child Support Scheme ensures that both parents take financial responsibility for their children. The Child Support formula takes into consideration the costs of raising a child and each parent’s capacity to contribute.  The instrument engages this right, as it will provide a mechanism for child support assessments to continue to be determined using the most up to date income information available, while the publication of trend estimates for all Average Weekly Earnings series are suspended.

Right of every child to an adequate standard of living

The instrument engages Article 27 of the CRC, which states at Article 27(1) that every child has the right to a “standard of living adequate for the child’s physical, mental, spiritual, moral and social development.”  Further, Article 27(2) states that “The parent(s) or others responsible for the child have the primary responsibility to secure, within their abilities and financial capacities, the condition of living necessary for the child’s development.”  In relation to parents who are separated, whether or not they have ever been married or partnered, Article 27(4) is of particular relevance, and it states that “States parties shall take all appropriate measures to secure the recovery of maintenance for the child from the parents or other persons having financial responsibility for the child, both within the State Party and from abroad.” By providing a mechanism for child support assessments to continue to be determined using the most up to date income information available, the instrument will allow Australia to meet its obligations under the CRC.

Conclusion

The instrument is compatible with human rights because it advances the protection of human rights.

 

Anne Ruston, Minister for Families and Social Services

 

Overview

The Child Support (Assessment) (AWE amount) Determination 2022, issued by the authority of the Minister for Families and Social Services, was enacted to address the suspension of the publication of trend Average Weekly Earnings (AWE) figures by the Australian Statistician, due to the impact of the COVID-19 pandemic. The instrument determines an amount for the AWE under subsection 58AA(4) of the Child Support (Assessment) Act 1989, which will serve as the AWE amount for the December quarter ending on 31 December 2021. This determination is necessary to ensure that child support assessments can continue using the most recent income information, thereby maintaining the financial support for children from separated parents in line with the intent of child support policy. The policy objective is to ensure that children of separated parents continue to share appropriately in the standards of living of their parents, despite the extraordinary circumstances caused by the pandemic. This legislative instrument, subject to disallowance, will commence the day after its registration on the Federal Register of Legislation. It engages human rights by respecting the right to family and the right of every child to an adequate standard of living, as outlined in the International Covenant on Civil and Political Rights and the Convention on the Rights of the Child, respectively. This determination provides a mechanism for child support assessments to proceed with the most current income information available, ensuring that Australia meets its obligations under international human rights instruments.

Scope and Application

The Child Support (Assessment) (AWE amount) Determination 2022 applies to parents involved in child support assessments under the Child Support (Assessment) Act 1989. This instrument is designed to address the suspension of the publication of trend estimates for Average Weekly Earnings (AWE) due to the impact of the COVID-19 pandemic on the labour market. The AWE amount determined in this instrument is intended to be used for calculating a parent’s Adjusted Taxable Income (ATI) where the taxable income from the last relevant year of income has not been assessed. The instrument specifies an AWE amount of $1,328.90 for the December quarter of 2021, which will be applied in child support assessments to ensure the continued equitable sharing of living standards by children of separated parents. This legislative instrument is applicable nationally within Australia, and its provisions can be extended or further specified through subordinate instruments if necessary. Notably, parents dissatisfied with their child support assessment can still seek merits review internally or externally, ensuring that their rights are upheld throughout the process.

Key Provisions

The Child Support (Assessment) (AWE amount) Determination 2022 (the instrument) establishes an amount under subsection 58AA(4) of the Child Support (Assessment) Act 1989 (the Act). This amount, determined as $1,328.90, will serve as the Average Weekly Earnings (AWE) amount for the December quarter 2021, in accordance with subsection 58AA(5) of the Act. This determination is critical because the Australian Statistician's usual publication of trend estimates for the AWE series was suspended since 2020 due to the impact of the COVID-19 pandemic on the labour market. As the Australian Statistician did not publish the relevant figure by 31 March 2022, the instrument was made under subsection 58AA(4) of the Act to ensure the continuity of child support assessments. The Act imposes specific obligations on the parties involved, particularly in ensuring the accurate determination of a parent's Adjusted Taxable Income (ATI) for child support assessment purposes. Where the taxable income from the last relevant year of income has not been assessed, but the income from the previous year or an earlier year has been assessed, the AWE amount is used to apply the ATI indexation factor. This helps account for the growth in earnings between the year the parent lodged their last tax return and the last relevant year of income. Furthermore, the instrument requires consultation with the Australian Statistician and the Australian Bureau of Statistics to determine an AWE amount that approximates the trend. It also mandates consultation with Services Australia, which is responsible for implementing the determined figure. There are no explicit offences, penalties, or consequences for breach detailed in the instrument itself. However, parents who disagree with the income details in their child support assessment can seek merits review internally under Part VII of the Child Support (Registration and Collection) Act 1988, and externally by the Administrative Appeals Tribunal, under Part VIIA of that Act. The instrument is subject to disallowance, which means it can be reviewed and potentially annulled by Parliament. Additionally, the instrument is compatible with human rights, as it supports the right to respect for family and the right of every child to an adequate standard of living, both of which are recognised under international human rights instruments. This compatibility ensures that the determination serves the broader social objectives of maintaining family stability and supporting children’s welfare.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.