Child Support Regulations (Amendment) 1991 No. 81
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 81
ISSUED BY THE AUTHORITY OF THE TREASURER
CHILD SUPPORT REGULATIONS (AMENDMENT)
The purpose of these regulations is to prescribe matters that are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for giving effect to the Child Support (Assessment) Act 1989, provided they are not inconsistent with the Act.
The Child Support (Registration and Collection) Act 1988 was the first part of a legislative package which aimed to reform child support so as to reduce the number of children in poverty and to make sure that parents with a capacity to pay do not leave it to the social security system to support their children.
The second part of the legislative package is the Child Support (Assessment) Act 1989 which enables parents to have child support amounts administratively assessed, or to make a child support agreement, rather than going to court
Notes on the regulations to be amended are set out below.
INFLATION FACTOR
Each parent's income is taken into account in a child support assessment. The income amount used is taxable income two financial years before the child support year, but adjusted by the Inflation Factor to take into account inflation.
Regulation 6 prescribes the Inflation Factor to be applied to taxable income for each child support year. The amendment to the regulation updates the table of inflation factor figures to include the year ending June 1992. The Inflation Factor applicable to that year will be 1.07.
CONVERSION OF ANNUAL RATES INTO DAILY RATES OF PAYMENT
Section 69 of the Act requires that when the Registrar assesses the annual rate of child support payable, the rate must then be converted to a daily rate in accordance with the Regulations. The amendment to regulation 8 makes it clear that the conversion under this regulation is for the purposes of section 69 of the Act.
Overview
The Child Support Regulations (Amendment) 1991 No. 81 was enacted by the Parliament of Australia to amend the Child Support Regulations, which provide the necessary framework for implementing the Child Support (Assessment) Act 1989. The primary objective of these regulations is to ensure that the child support system operates effectively, particularly by addressing the economic disparity faced by children whose parents do not adequately provide for them. This legislative amendment aims to refine the existing framework to better account for inflation and to clarify the conversion of annual child support rates into daily payment rates, thereby improving the accuracy and fairness of child support assessments.
These regulations were introduced to update the Inflation Factor, which adjusts taxable income figures to reflect inflation over time, ensuring that child support assessments remain relevant and fair. Additionally, the amendment to regulation 8 provides clarity on the conversion of annual child support rates into daily rates of payment, ensuring that the administrative processes align with the statutory requirements and enhance the precision of child support calculations. This amendment is a crucial step in maintaining the integrity and effectiveness of the child support system as established by the legislative package introduced in the late 1980s.
Scope and Application
The Child Support Regulations (Amendment) 1991 No. 81 apply to matters concerning the assessment and collection of child support in Australia, governed by the Child Support (Assessment) Act 1989 and the Child Support (Registration and Collection) Act 1988. These regulations are specifically designed to implement provisions of the aforementioned Acts, ensuring that they are not inconsistent with the legislative framework they support. They apply to all parents involved in child support assessments and collection processes, regardless of their location within Australia. The regulations provide detailed methods for calculating child support, including the adjustment of taxable income by the Inflation Factor and the conversion of annual child support rates into daily rates of payment. While the regulations aim to streamline and standardise child support processes, they do not apply to any specific exclusions or exemptions beyond what is stipulated within the Acts themselves. The amendments introduced by these regulations are intended to update and clarify certain aspects of child support calculation, ensuring consistency and fairness in assessments.
Key Provisions
The main operative sections of the Child Support Regulations (Amendment) 1991 No. 81 pertain to updating the Inflation Factor (Regulation 6) and clarifying the conversion of annual rates into daily rates of payment (Regulation 8). Regulation 6 sets the Inflation Factor for each child support year, which adjusts the taxable income to account for inflation, with the updated table including the year ending June 1992 with an Inflation Factor of 1.07. Regulation 8 specifies that the conversion of the annual rate of child support payable into a daily rate must be done in accordance with the Regulations, specifically for the purposes of Section 69 of the Child Support (Assessment) Act 1989.
These regulations impose certain obligations and requirements on the parties involved in child support assessments and payments. For instance, Regulation 6 requires that the Inflation Factor be applied to the taxable income of each parent when assessing child support amounts. This ensures that the income used in the assessment reflects the current economic conditions and inflation. Regulation 8, on the other hand, mandates that the annual rate of child support payable must be converted into a daily rate as per the Regulations, ensuring that payments are calculated accurately and consistently.
The regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, given that these regulations are amendments to the Child Support (Assessment) Act 1989, non-compliance with the prescribed Inflation Factor or conversion procedures could potentially lead to disputes or legal action under the broader legislative framework. This may involve challenges in court regarding the accuracy and fairness of child support assessments and payments. While the specific penalties are not detailed within these regulations, breaches of child support obligations under the overarching Act could result in legal action, fines, or other sanctions as determined by the relevant courts.