Child Support (Assessment) Regulations (Amendment) 1997 No. 170
EXPLANATORY STATEMENT
Statutory Rules 1997 No. 170
Issued by the Authority of the Assistant Treasurer
Child Support (Assessment) Act 1989
Child Support (Assessment) Regulations (Amendment)
Section 164 of the Child Support (Assessment) Act 1989 (the Act) provides that the Governor-General may make Regulations for the purposes of the Act.
The Act provides for the administrative assessment of child support by the Child Support Registrar according to a formula set out in the Act, as well as for acceptance by the Registrar of consent agreements between parties as child support agreements.
Regulation 6 - (Inflation factor)
In determining a person's child support income amount, section 55 of the Act provides for a person's taxable income to be multiplied by an inflation factor applicable to the particular child support year, as set out in the Regulations.
The purpose of the proposed Regulation is to prescribe the inflation factor to be applied to a person's taxable income in relation to the 1997/98 child support year. The amending Regulation will include a figure of 1.045 as the inflation factor for the child support year ending on 30 June 1998. The inflation factor is based on the estimate of a 4.5 per cent increase in average earnings (National Accounts basis excluding superannuation and redundancies) for the 1996/97 financial year.
The Regulation will commence on 1 July 1997.
Regulation 9 - (Orders that may be made by a court)
Regulation 9 provides for the Registrar or a court to make certain kinds of determinations or orders with respect to the application of the child support formula to the liable parent and the custodian. The Family Law Reform Act 1995 substituted the term "carer" for "custodian" throughout the Child Support (Assessment) Act 1989.
The purpose of the amendment is to ensure that terminology used in Regulation 9 is consistent with that of the Child Support (Assessment) Act 1989 by substituting the term "carer" for "custodian" in the Regulation.
The Regulation will commence on gazettal.
Overview
The Child Support (Assessment) Regulations (Amendment) 1997 No. 170 were enacted to make necessary amendments to the existing regulations under the Child Support (Assessment) Act 1989. These amendments address specific issues related to the calculation of child support payments, including the inflation factor for determining taxable income and the alignment of terminology with contemporary legislative language. The enacting authority for these regulations is the Assistant Treasurer, and they were made under the authority vested in the Governor-General by section 164 of the Child Support (Assessment) Act 1989. The primary policy objective is to ensure the administrative assessment of child support remains accurate and consistent with legislative changes, particularly those introduced by the Family Law Reform Act 1995. The regulations aim to maintain the integrity and fairness of the child support assessment process by incorporating updated economic data and harmonising terminology across related statutes.
Scope and Application
The Child Support (Assessment) Regulations (Amendment) 1997 No. 170, made under the Child Support (Assessment) Act 1989, are designed to refine the processes of calculating child support payments by incorporating updated inflation factors and aligning regulatory language with legislative terminology. This amendment applies to individuals and entities involved in child support assessments and orders, particularly focusing on the liable parent and the carer of the child. The regulation sets the inflation factor for the 1997/98 child support year at 1.045, reflecting a projected 4.5% increase in average earnings. Additionally, it updates the terminology within the regulations to reflect changes made by the Family Law Reform Act 1995, replacing the term "custodian" with "carer" in Regulation 9. These regulations are applicable nationally and will commence on specified dates, with some provisions starting from 1 July 1997 and others from the date of gazette. The amendments do not exclude any specific persons or entities but are designed to ensure that the administration of child support is consistent with legislative updates and economic changes.
Key Provisions
The Child Support (Assessment) Regulations (Amendment) 1997 No. 170, issued under the authority of the Assistant Treasurer, amends the Child Support (Assessment) Regulations 1991 to implement specific changes regarding the assessment of child support. Regulation 6, pertaining to the inflation factor, modifies the method for determining a person's child support income by applying an inflation factor to their taxable income. Specifically, section 55 of the Child Support (Assessment) Act 1989 (the Act) requires that the person's taxable income be multiplied by this inflation factor for the relevant child support year. The amendment sets the inflation factor at 1.045 for the 1997/98 child support year, reflecting an estimated 4.5 per cent increase in average earnings, as per national accounts excluding superannuation and redundancies for the 1996/97 financial year. This regulation is set to take effect from 1 July 1997.
The Act, which governs the administrative assessment of child support by the Child Support Registrar, requires the Registrar to follow a formula outlined in the Act. Regulation 9 addresses the orders that may be made by the Registrar or a court in applying the child support formula. The amendment to Regulation 9 ensures consistency in terminology by substituting the term "carer" for "custodian" throughout the regulation. This change aligns the terminology used in the regulation with the updated language in the Child Support (Assessment) Act 1989, which was updated by the Family Law Reform Act 1995. The regulation will commence upon its gazettal.
The obligations imposed by these regulations primarily concern the Child Support Registrar and any party involved in child support assessments. The Registrar is required to apply the prescribed inflation factor when determining a person's child support income and must use the updated terminology when making orders or determinations under the Act. Parties involved in child support assessments must ensure that their taxable income is correctly adjusted by the inflation factor and are aware of the terminology changes to accurately understand their rights and obligations under the Act.
The Child Support (Assessment) Act 1989 includes provisions for offences and penalties in cases of non-compliance or misrepresentation. Section 222 of the Act stipulates that a person who makes a false or misleading statement for the purpose of obtaining child support is subject to penalties. The maximum penalty for such an offence is 50 penalty units, which equates to a substantial fine. Additionally, the Act empowers courts to impose fines and other penalties for breaches related to child support assessments. These penalties serve as a deterrent to non-compliance and ensure that the child support system operates fairly and effectively.