Child Support (Assessment) Regulations Amendments 1993 No. 131
EXPLANATORY STATEMENT
Statutory Rules 1993 No. 131
Issued by the Authority of the Assistant Treasurer
Child Support (Assessment) Act 198
Child Support (Assessment) Regulations Amendments
The purpose of these Regulations is to prescribe matters that are required or permitted to be prescribed, or which are necessary to be prescribed for giving effect to the Child Support (Assessment) Act 1989 (the Act). Regulations may be made providing they are not inconsistent with the Act.
AMENDMENT 1
Children who are in the custody of, or under the guardianship, care and control or supervision of, a person under a child welfare law are excluded as eligible children under section 22 of the Act if a regulation has been prescribed for that purpose. A regulation has been prescribed and so all such children are ineligible.
The Act was amended by the Child Support Legislation Amendment Act 1992 to extend eligibility for administrative assessment to parents and relatives who have the care of children subject to a child welfare law. Eligibility is dependent upon each State and Territory referring its powers to the Commonwealth under the Commonwealth Powers (Family Law - Children) Acts.
A new regulation 4 is substituted which inserts a table of States in the regulation which have not referred their powers under the Commonwealth Powers (Family Law- Children) Act. As powers are referred by each State, that State name will be removed from the table.
The Australian Capital Territory and the Northern Territory do not need to refer their powers and are not included in the table. Eligibility is therefore extended to parents and relatives in those Territories.
AMENDMENT 2
Regulation 5 which prescribes matters that may be included in approved forms is omitted because it has become redundant following upon the repeal of section 5 of the Act by the Child Support Legislation Amendment Ad (No. 2) 1992.
AMENDMENT 3
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 the inflation factor applicable to that child support year, as set out in the regulations. Regulation 6 prescribes the inflation factor to be applied to a person's taxable income. The inflation factor for the child support year ending on 30 June 1994 is proposed to be 1.035. This figure is stated in the 1992-93 Budget Statement Number 1 as the estimate of a 3.5% increase in average weekly earnings (National Accounts Basis, excluding superannuation) in the 1992-93 income year. The amendment updates the table to include a figure for the child support year ending 30 June 1994.
AMENDMENT 4
The Act was amended by the Child Support Legislation Amendment Act (No. 2) 1992 to shift the effect provisions for income estimates from the Act to the regulations. The Explanatory Memorandum stated at the time that the intention was to generally make the effect provisions fairer for all by having them have effect from the month after the month in which the estimate was made. At the time details were being examined to ensure there are no unintended outcomes from the change (see Chapter 5, page 22 of the Explanatory Memorandum).
It is really only possible to have such a change start from the beginning of a child support year and it has not been possible to be ready with the change in time for 1993-94 assessments. The amendment prescribes the effect provisions of estimates but does not depart from the existing arrangements in the Act. Each estimate lodged will apply to the whole of the child support year as at present.
Overview
The Child Support (Assessment) Regulations Amendments 1993 No. 131, issued by the authority of the Assistant Treasurer, aim to provide amendments to the Child Support (Assessment) Regulations 1989. The amendments address specific issues identified in the Child Support (Assessment) Act 1989, which was enacted to streamline the assessment and collection of child support payments in Australia. The policy objective of the Act is to ensure that children receive adequate financial support from both parents, regardless of whether the parents are together or separated. These regulations seek to refine and update the existing legislative framework to better align with current practices and requirements, ensuring the fair and effective administration of child support. The Australian Capital Territory and the Northern Territory are not included in the table of States in the regulation, as they do not need to refer their powers under the Commonwealth Powers (Family Law- Children) Act.
Scope and Application
The Child Support (Assessment) Regulations Amendments 1993 No. 131 is a legislative instrument that provides further detail and operational rules to support the Child Support (Assessment) Act 1989. This Act applies to individuals, parents, relatives, and entities involved in child support matters, particularly those who have children subject to child welfare laws. The Act and its associated regulations govern the assessment of child support payments, establishing guidelines and procedures for calculating these payments. The scope of the Act extends across Australia, as it is a Commonwealth legislation, but its application may vary based on the referral of state and territory powers to the Commonwealth. For instance, certain amendments extend eligibility for administrative assessment to parents and relatives in the Australian Capital Territory and the Northern Territory without the need for power referrals, while other states must refer their powers under the Commonwealth Powers (Family Law - Children) Acts for the provisions to apply. The regulations also include specific exclusions, such as children who are under the custody or care of a person under a child welfare law, provided a regulation has been prescribed for such purposes. Additionally, the regulations update the inflation factors used in calculating taxable income for child support purposes, ensuring these factors are consistent with economic indicators and budget estimates.
Key Provisions
The Child Support (Assessment) Regulations Amendments 1993 No. 131, made under the Child Support (Assessment) Act 1989, introduce several key provisions to update and refine the application of child support laws in Australia. Firstly, Amendment 1 clarifies that children under the custody or guardianship of a person under a child welfare law are not eligible for child support, as per section 22 of the Act, unless the relevant state or territory refers its powers to the Commonwealth under the Commonwealth Powers (Family Law - Children) Acts (section 22). Amendment 2 removes redundant regulation 5, which was previously used to prescribe matters that may be included in approved forms but is now unnecessary following the repeal of section 5 of the Act by the Child Support Legislation Amendment Act (No. 2) 1992. Amendment 3 updates the inflation factor applied to a person's taxable income for determining child support income amounts, setting the inflation factor for the child support year ending on 30 June 1994 at 1.035 (regulation 6). Lastly, Amendment 4 maintains the effect provisions for income estimates, ensuring that each estimate applies to the whole of the child support year, aligning with the original intent of the Child Support Legislation Amendment Act (No. 2) 1992 to shift these provisions from the Act to the regulations.
The obligations and requirements imposed by these amendments on the parties and entities governed by the Act include ensuring that child support assessments do not include children under the care of a person under a child welfare law, unless state or territory powers are referred to the Commonwealth. Parties involved in child support assessments must also adhere to the updated inflation factor for taxable income calculations. Furthermore, the amendments require compliance with the new effect provisions for income estimates, which continue to apply to the whole of the child support year.
In terms of civil or criminal consequences for breach, the Child Support (Assessment) Regulations Amendments 1993 No. 131 do not explicitly state penalties for non-compliance. However, any failure to adhere to the requirements of the Act and these amendments could potentially lead to disputes in child support assessments, with legal recourse available through the relevant tribunals or courts. Parties found in breach of the Act's provisions could face penalties as prescribed under the Act, which may include fines or other civil penalties for incorrect or fraudulent child support assessments.