Child Support (Assessment) (MTAWE amount) Determination 2022

Administered by Department of Social Services

Legislation au F2022L01323 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

 

Issued by the authority of the Minister for Social Services

 

Child Support (Assessment) Act 1989

 

Child Support (Assessment) (MTAWE amount) Determination 2022

 

Purpose

 

The Child Support (Assessment) (MTAWE amount) Determination 2022 (the instrument) determines an amount under subsection 5A(6) 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 Male Total Average Weekly Earnings (MTAWE) trend figure for the June 2022 quarter in accordance with subsection 5A(7) of the Child Support Assessment Act. 

 

Determination of an amount to be taken to be the MTAWE amount is necessary for child support assessment purposes. This is because the publication of trend estimates for the Average Weekly Earnings series, ordinarily published by the Australian Statistician, has been suspended in 2020, 2021 and 2022 due to the impact of the COVID-19 pandemic on the labour market. The Minister is able to make this instrument because the Australian Statistician did not publish the Average Weekly Earnings – Trend – Males – All Employees Total Earnings figure for the June 2022 quarter by the end of 30 September 2022. When the Australian Statistician resumes publication of the MTAWE trend figure for subsequent June quarters, the published figure will be used in assessment periods commencing in the subsequent calendar year.

Background

The MTAWE trend figure is annualised to be used to determine the costs of children, which underpin administrative child support assessments for periods commencing in the subsequent calendar year. It is also used to generate various other elements in child support formula assessments.

The Australian Statistician has temporarily suspended publication of the MTAWE trend figure from June 2020, and has continued this temporary suspension from June 2021, and again from June 2022. This is due to the impact of the COVID-19 pandemic, although various other wage statistics, including seasonally adjusted figures, continue to be published. In consultation with the Australian Statistician, an alternative amount has been selected to be used for the purposes of making new child support assessments. The amount determined is an appropriate amount to ensure children of separated parents continue to share appropriately in the standards of living of their parents, notwithstanding the extraordinary circumstances that have arisen due to the COVID-19 pandemic.  The determined amount, selected with expert advice from the Australian Statistician, provides the most accurate available representation of the trend and allows assessments to be calculated as closely as possible to applying the published figure intended under the Child Support Assessment Act.

Should a parent disagree with the assessment of their capacity to provide financial support based upon the costs of children that are based on the determined amount, they remain able to seek a departure from administrative assessment under Part 6A of the Child Support Assessment Act.

This will enable a more individualised assessment to be made, if grounds are identified. Departure decisions, or refusal to make a departure decision, are subject to full merits review both internally (under the Child Support (Registration and Collection) Act 1988 Part VII) and externally by the Administrative Appeals Tribunal (Part VIIA).

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 derive an amount that approximated the MTAWE 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 (OBPR), a RIS is not required for this instrument (OBPR ID OBPR22-03070).


Explanation of the provisions

Section 1

This section provides that the name of the instrument is the Child Support (Assessment) (MTAWE 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 5A(6) 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 1989. There is a note that the expression “relevant June quarter” is defined in subsection 5A(2) of the Child Support Assessment Act.

Section 5A(2) of the Child Support Assessment Act provides that “relevant June quarter”, in relation to a child support period, means the quarter ending on 30 June of the last calendar year ending before the child support period begins.

Section 5

This section determines the amount of $1,587.00 for the relevant June quarter ending on 30 June 2022, based on the advice of the Australian Statistician that the seasonally adjusted MTAWE figure is a good proxy for the trend. The amount of $1,587.00 will be used to calculate child support assessments where the child support period commences from 1 January 2023.

 

Statement of Compatibility with Human Rights

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

 

Child Support (Assessment) (MTAWE amount) Determination 2022

 

The Child Support (Assessment) (MTAWE) 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 5A(6) 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 MTAWE trend figure for the June 2022 quarter in accordance with subsection 5A(7) of the Child Support Assessment Act. 

Determination of an amount that is taken to be the MTAWE amount is necessary for child support assessment purposes because the publication of trend estimates for Average Weekly Earnings series, ordinarily published by the Australian Statistician, has been suspended from June 2020 due to the impact of the COVID-19 pandemic on the labour market. The suspension of publication has continued in 2022.

Human rights implications

This legislative instrument engages the following rights:

         Right to respect for family – Article 23(4) of the ICCPR, and

         Right of every child to an adequate standard of living – Article 27 of the CRC.

Right to respect for family

This legislative 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.  This instrument engages this right, as it will provide a mechanism for child support assessments to continue to be determined while the publication of trend estimates for all Average Weekly Earnings series are suspended.

Right of every child to an adequate standard of living

This 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, this instrument will allow for Australia to meet its obligations under the CRC.

 

Conclusion

The instrument is compatible with human rights because they advance the protection of human rights.

 

Amanda Rishworth, Minister for Social Services

Overview

The Child Support (Assessment) (MTAWE amount) Determination 2022 is a legislative instrument enacted by the Australian Parliament to address the problem caused by the suspension of the publication of the Male Total Average Weekly Earnings (MTAWE) trend figures due to the COVID-19 pandemic. This suspension affected the calculation of child support assessments for periods commencing from 1 January 2023. The instrument determines an amount, as advised by the Australian Statistician, to be taken as the MTAWE trend figure for the June 2022 quarter in accordance with the Child Support (Assessment) Act 1989. The policy objective of this instrument 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. By establishing an alternative amount, the determination provides the most accurate representation of the trend possible under the circumstances, facilitating the calculation of child support assessments as closely as possible to applying the published MTAWE figure intended under the Act. This instrument is compatible with human rights, engaging the right to respect for 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.

Scope and Application

The Child Support (Assessment) (MTAWE amount) Determination 2022 applies to the Commonwealth of Australia and specifically targets individuals who are involved in child support assessment processes under the Child Support (Assessment) Act 1989. This determination is essential for ensuring that the Male Total Average Weekly Earnings (MTAWE) trend figure is appropriately established for the June 2022 quarter to support child support assessments. Given the temporary suspension of MTAWE trend figure publication by the Australian Statistician due to the COVID-19 pandemic, this determination sets an amount to be used in place of the published figure, facilitating the continuation of assessments. This legislative instrument is made under the authority provided by subsection 5A(6) of the Child Support (Assessment) Act 1989 and aims to maintain the integrity of child support assessments. It is important to note that the instrument does not specify any exclusions or exemptions, ensuring that it applies uniformly across the relevant jurisdiction and to all cases requiring MTAWE figures for the specified quarter. The instrument will commence the day after it is registered on the Federal Register of Legislation and is subject to disallowance.

Key Provisions

The Child Support (Assessment) (MTAWE amount) Determination 2022 sets out the Male Total Average Weekly Earnings (MTAWE) amount for the relevant June quarter, which is to be taken as the MTAWE trend figure for the June 2022 quarter in accordance with subsection 5A(7) of the Child Support (Assessment) Act 1989 (the Child Support Assessment Act). This determination was necessary due to the suspension of the publication of trend estimates for the Average Weekly Earnings series, ordinarily published by the Australian Statistician, since June 2020, a suspension that has continued through to June 2022 due to the impact of the COVID-19 pandemic on the labour market. The determined amount, which is $1,587.00, will be used to calculate child support assessments where the child support period commences from 1 January 2023. The Act imposes obligations on various entities and individuals to ensure that child support assessments are carried out fairly and accurately. These entities include the Australian Statistician, Services Australia, and parents involved in child support assessments. The Australian Statistician is responsible for providing advice on the MTAWE amount, while Services Australia is responsible for implementing the determined amount in child support assessments. Parents who disagree with their assessment based on the costs of children that are derived from the determined amount may seek a departure from administrative assessment under Part 6A of the Child Support Assessment Act, which will enable a more individualised assessment to be made if grounds are identified. Breaches of the Child Support Assessment Act can result in various offences, penalties, and civil or criminal consequences. For instance, providing false or misleading information to the Australian Statistician or Services Australia can result in fines or imprisonment, with the maximum penalty depending on the severity of the offence. Additionally, parents who fail to pay child support as determined by the assessment can face enforcement actions, including wage garnishment or imprisonment. It is important to note that the determination of the MTAWE amount is subject to disallowance, and any changes or updates to the amount will be communicated through appropriate channels.

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Child Support Law
Instrument
Statutory Instrument
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Definitions & Interpretation
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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.