Child Support (Assessment) Regulations (Amendment) 1996 No. 142
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 142
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 amendment to the Child Support (Assessment) Regulations (the regulations) is set out below.
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.
The purpose of the proposed regulation is to prescribe the inflation factor to be applied to a person's taxable income. The regulation prescribing the inflation factor is amended on an annual basis. The inflation factor for the child support year ending on 30 June 1997 will be 1.04. The inflation factor is the estimate of a 4% increase in average weekly earnings (National accounts basis), excluding superannuation, in the 1995-96 income year. The amendment updates the table in regulation 6 to include the figure for the child support year ending 30 June 1997.
The regulation commenced on 1 July 1996.
Overview
The Child Support (Assessment) Regulations (Amendment) 1996 No. 142 were enacted to update the inflation factor applied to a person's taxable income for the purposes of determining child support under the Child Support (Assessment) Act 1989. This regulation was issued under the authority of the Assistant Treasurer and commenced on 1 July 1996. The primary objective of the amendment is to ensure that the inflation factor used in calculating child support income reflects the most recent economic conditions, specifically updating the factor for the child support year ending on 30 June 1997 to 1.04, representing a 4% increase in average weekly earnings excluding superannuation for the 1995-96 income year. This adjustment aims to maintain the relevance and accuracy of the child support assessment formula as it responds to changes in the economic environment.
Scope and Application
The Child Support (Assessment) Regulations (Amendment) 1996 No. 142 amends the Child Support (Assessment) Regulations 1989 under the authority granted by section 164 of the Child Support (Assessment) Act 1989. This Act applies to individuals and entities involved in child support assessments, including parents or guardians seeking or paying child support, and the Child Support Registrar who administers the assessments. The regulations are designed to provide a formulaic approach to determining child support amounts, which is applied nationally across Australia, thereby ensuring uniformity and consistency in child support assessments throughout the Commonwealth. The regulations include provisions for adjusting taxable income by an inflation factor, which is updated annually to reflect changes in average weekly earnings, as set out in the amendment. This amendment specifically updates the inflation factor for the child support year ending 30 June 1997, ensuring that assessments remain current and reflective of economic conditions. The regulation commenced on 1 July 1996 and is subject to annual updates as required by the Act.
Key Provisions
The Child Support (Assessment) Regulations (Amendment) 1996 No. 142 primarily concerns the amendment to the inflation factor used in calculating a person's child support income amount under section 55 of the Child Support (Assessment) Act 1989. The regulation specifies that, in determining a person's child support income, their taxable income must be multiplied by an inflation factor applicable to the relevant child support year, as prescribed in the regulations. Section 55 of the Act mandates this calculation to ensure the child support amount reflects changes in the cost of living.
The amendment to the Child Support (Assessment) Regulations updates the inflation factor for the child support year ending on 30 June 1997, setting it at 1.04. This figure represents an estimated 4% increase in average weekly earnings, excluding superannuation, for the 1995-96 income year, based on National accounts data. This change ensures the child support calculations remain relevant to economic conditions. The regulations require the Child Support Registrar to apply this updated inflation factor when assessing child support obligations.
The obligations imposed by this amendment on the parties governed by the Child Support (Assessment) Act 1989 include the requirement for individuals to accurately report their taxable income and for the Child Support Registrar to use the updated inflation factor in their calculations. This ensures that the child support amounts are fair and reflective of current economic conditions. The Registrar must also update their systems and processes to incorporate the new inflation factor in a timely manner.
Failure to comply with the requirements of the Child Support (Assessment) Act 1989 and the regulations can lead to various consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of child support laws generally can result in enforcement actions, such as garnishee orders, interest charges, or other penalties as provided under the Act. Additionally, there may be civil or criminal liabilities for providing false or misleading information or for willfully failing to comply with child support obligations.