Child Support - Average Weekly Earnings figure for quarter ending 31 December 2013

Overview

The Child Support (Assessment) Act 1989 was enacted to address the need for a fair and consistent method of determining child support payments in Australia. This legislation was introduced to ensure that children receive adequate financial support from both parents, regardless of whether the parents are separated or divorced. The Act is administered by the Parliament of Australia and aims to establish a transparent and equitable system for calculating child support liabilities. The Act was designed to fill the gap created by the previous system which was often criticised for being inconsistent and difficult to understand. The notification regarding the Average Weekly Earnings figure for the quarter ending 31 December 2013, signed by Finn Pratt, Secretary of the Department of Social Services on 21 April 2014, is an example of the ongoing updates required to maintain the relevance and accuracy of the child support assessment process.

Scope and Application

The Child Support (Assessment) Act 1989 applies to individuals and entities involved in the assessment and calculation of child support payments within Australia. This includes parents, guardians, and relevant government agencies responsible for administering child support obligations. The Act is applicable across the Commonwealth of Australia and encompasses all individuals who are subject to the child support scheme, irrespective of state or territory boundaries. It pertains to the calculation of income for the purpose of determining child support liabilities, which includes both gross and net income assessments. However, the Act does not specify any exclusions or exemptions, though the application of the Average Weekly Earnings (AWE) figure, as notified by the Secretary of the Department of Social Services, may implicitly exclude certain low-income earners or those not in the workforce. The application and enforcement of the Act can be extended or modified through subordinate instruments, such as regulations and guidelines issued by the Department, which provide further detail on the assessment processes and criteria.

Key Provisions

The Child Support (Assessment) Act 1989, specifically in section 155 (2A), mandates the Secretary of the Department of Social Services to notify the Average Weekly Earnings (AWE) figure for each quarter ending on 31 December, as seen in the notice issued by Finn Pratt. This particular notice from April 2014, highlights that the AWE for the quarter ending 31 December 2013 is $1,115.40. This figure is crucial as it forms the basis for calculating child support obligations and entitlements under the Act. The obligations imposed by the Act require that both parents of a child support recipient are responsible for contributing towards the child's maintenance. This includes providing financial support calculated based on the AWE, which is used to determine the income levels for assessment purposes. The Act ensures that these assessments are conducted fairly and consistently, with the AWE serving as a benchmark. Non-compliance with the obligations set out in the Child Support (Assessment) Act 1989 can lead to significant consequences. Under section 122 of the Act, an individual who fails to provide correct information or cooperate in the assessment process may face civil penalties. These penalties can include fines and, in severe cases, imprisonment. The maximum penalties for providing false or misleading information can be substantial, reflecting the importance of accuracy and honesty in the child support assessment process. Additionally, failure to pay child support can lead to enforcement actions, including wage garnishment and the deduction of tax refunds.