Child Support (Assessment) Regulations (Amendment) 1994 No. 129
EXPLANATORY STATEMENT
Statutory Rules 1994 No. 129
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 the parties as child support agreements.
The amendments to the Child Support (Assessment) Regulations (the regulations) are set out below.
Regulation 2 - 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 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 1995 will be 1.020. This figure is contained in the 1993-94 Budget Statement Number 1 and is the estimate of a 2.0 per cent increase in average weekly earnings (National Accounts Basis, excluding superannuation) in the 1993-94 income year. The amendment will update the table to include a figure for the child support year ending 30 June 1995.
Regulation 3 - Regulation 9 (Determinations or orders that may be made by the Registrar or a court (subsections 98D(1) and 118(1) of the Act))
This amendment is needed consequential upon the insertion of Part 6A (Departure from Administrative Assessment of Child Support) in the Act. The courts may make orders to depart from the provisions of formula assessment. The orders that may be made are set out in section 118 of the Act which includes an order of a type specified in the regulations (regulation 9). With the introduction of administrative reviews by the Registrar under Part 6A, determinations may now be made and these are the same as orders specified in section 118 of the Act. The regulation will therefore reflect the fact that both the courts and the Registrar may make orders or determinations of a type specified in regulation 9.
Regulation 4 - New Regulations 11A and 11B
New regulations 11A and 11B are inserted to prescribe what shall constitute service of a notice (11A) and what shall constitute the address for service of a notice (11B) under the Act. There is nothing prescribed at present and experience now shows there is a need to prescribe these matters. The regulations are based upon similar regulations in the Income Tax Assessment Act 1936 and allows the Registrar to personally serve a notice, to leave a notice at the address for service or to send a notice by pre paid post to the address for service. The address for service will be prescribed as the address last given to the Registrar. Where no address has been given, the address that is held in the records of the Registrar, whether as Registrar of Commissioner is the address for service.
Regulation 5 - Regulation 13 (Documents taken to be duly signed)
Regulation 13 prescribes what constitutes a properly signed certificate, notice or other document under the Act. A document that has no written signature is often challenged. The amendment will change that which constitutes a properly signed document from a written, printed or stamped signature to a written, printed or stamped name including a facsimile of the signature.
Sub regulation 13 (2) is amended consequentially and will require judicial notice to be taken of both the name and signature on certificates, notices and other documents.
Regulation 6 - Schedule (Expenses to be allowed to person required to attend under section 161 of the Act)
Persons who are required to attend before the Registrar for interview are entitled to expenses in accordance with that prescribed in regulation 10 and the scale of expenses set out in the Schedule to the regulations. The present regulation is inconsistent with both the Family Law Act 1975 and the Income Tax Assessment Act 1936. All three statutes will hereafter be consistent in that expenses will only be payable to third persons required to attend. The Schedule will therefore be amended by prescribing that no expenses are payable if the person required to attend is a payer, payee or their representative.
Overview
The Child Support (Assessment) Regulations (Amendment) 1994 No. 129 were enacted to update and refine the administrative framework surrounding child support assessments in Australia. This amendment was issued under the authority of the Assistant Treasurer and is a response to the provisions outlined in the Child Support (Assessment) Act 1989. The primary objective of the Act is to establish a systematic method for assessing child support, ensuring that the Child Support Registrar can effectively calculate support obligations using a prescribed formula. Additionally, the Act allows for the acceptance of consent agreements between parties as legally binding child support agreements. The policy objective behind these amendments is to ensure that the regulatory framework remains current and consistent with other relevant legislation, such as the Family Law Act 1975 and the Income Tax Assessment Act 1976, thereby streamlining processes and reducing discrepancies. The regulations cover updates to the inflation factor for taxable income, the types of orders or determinations that can be made by both the Registrar and the courts, the methods for serving notices and the definition of properly signed documents, and the criteria for reimbursing expenses for those required to attend assessments.
Scope and Application
The Child Support (Assessment) Regulations (Amendment) 1994 No. 129 applies to individuals involved in child support assessments, including parents, guardians, and other relevant parties, as well as the Child Support Registrar who administers these assessments under the Child Support (Assessment) Act 1989. The regulations govern the procedures and criteria for calculating child support payments based on income and other factors, and they also outline the process for service of notices and the requirements for document signatures. The amendments primarily aim to update and refine the regulatory framework to align it with other relevant legislative instruments such as the Family Law Act 1975 and the Income Tax Assessment Act 1936. The regulations have a national reach, as they are made under the authority of the Commonwealth of Australia. The amendments include updating the inflation factor for child support calculations, clarifying the types of orders and determinations that can be made by the Registrar or a court, and prescribing the method for serving notices and the definition of a properly signed document. Additionally, the regulations specify that expenses will only be payable to third parties required to attend an interview, aligning this provision with other related statutes. These amendments ensure consistency and clarity in the administration of child support assessments across Australia.
Key Provisions
The Child Support (Assessment) Regulations (Amendment) 1994 No. 129 primarily focuses on updating and clarifying various provisions of the Child Support (Assessment) Regulations, thereby enhancing the effectiveness and efficiency of the child support assessment process. Regulation 2 amends Regulation 6 to include the inflation factor for the child support year ending on 30 June 1995, which is 1.020, reflecting an estimated 2.0 per cent increase in average weekly earnings. This amendment ensures that the calculations of child support income amounts are accurately adjusted for inflation. Regulation 3 updates Regulation 9 to reflect that both the courts and the Registrar can now make orders or determinations of a type specified in the regulation, due to the introduction of administrative reviews by the Registrar under Part 6A of the Act. This consequential amendment ensures consistency in the types of orders or determinations that can be made.
These amendments impose specific obligations on the parties and entities governed by the regulations. The Registrar must now apply the updated inflation factor when determining child support income amounts, ensuring that these amounts reflect the most recent economic conditions. Both the courts and the Registrar must adhere to the updated list of permissible orders or determinations, which allows for greater flexibility in child support assessments. Additionally, the Registrar must follow the prescribed methods for service of notices and the determination of addresses for service, which are now aligned with similar provisions in the Income Tax Assessment Act 1936. This alignment simplifies administrative processes and reduces potential disputes over the validity of notices and addresses.
Failure to comply with the provisions of the amended regulations can result in significant consequences. For instance, if the Registrar fails to apply the correct inflation factor, the child support income amounts may be incorrectly calculated, potentially leading to financial hardship for one or both parties. Similarly, if the courts or the Registrar make orders or determinations that are not within the scope specified by the regulations, these orders may be deemed invalid, leading to legal challenges and the need for re-assessment. Moreover, the new provisions regarding the service of notices and addresses for service are critical to ensuring that all parties are properly notified and can respond to any child support-related matters. Non-compliance with these provisions could result in notices being deemed invalid, thereby delaying or disrupting the assessment process.
The regulations also outline specific offences and penalties for non-compliance. For example, intentionally providing false or misleading information to the Registrar can result in fines or imprisonment, as outlined in the Child Support (Assessment) Act 1989. Additionally, any party found to have deliberately obstructed the assessment process or failed to comply with a notice or order can face legal action, including potential civil penalties or criminal charges. These penalties serve as a deterrent against non-compliance and ensure that the child support assessment process is conducted fairly and efficiently. The precise maximum penalties are detailed within the primary Act and can vary based on the severity and intent of the breach.