Child Support (Registration and Collection) Amendment Regulations 2004 (No. 1) 2004 No. 45
EXPLANATORY STATEMENT
Statutory Rules 2004 No. 45
Issued by the Authority of the Parliamentary Secretary to the Minister for Family and Community Services
Child Support (Registration and Collection) Act 1988
Child Support (Registration and Collection) Amendment Regulations 2004 (No. 1)
Section 125 of the Child Support (Registration and Collection) Act 1988 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 113 of the Act allows the Commonwealth to recover debts. Paragraph 113(1)(a) of the Act specifically provides that debts due to the Commonwealth under the Act are payable to the Child Support Registrar (the Registrar) in the manner and place prescribed. No arrangements have been made to prescribe this.
Prior to 1 July 2001, the Commissioner of Taxation had the general administration of child support laws as well as being the Registrar. At this tune the Child Support Agency (CSA) relied on Regulation 18 of the Taxation Administration Regulations 1976, which prescribes appropriate payment methods for taxation liabilities. Now the Secretary of the Department of Family and Community Services has administration of the Act, and the General Manager of the CSA is the Registrar. The CSA can no longer rely on the power of the Commissioner to make regulations determining how child support payments can be made.
The purpose of the Regulations is to amend the Child Support (Registration and Collection) Amendment Regulations 1988 by prescribing the methods by which a child support debt is payable to the Registrar. The amendments will enable a debt to be paid to the Registrar at:
• the CSA;
• a payment agency that accepts such payments under arrangement with the CSA; or
• a financial institution that maintains an account for receipt of such payments under arrangement with the CSA.
The amendments will also enable a debt to be paid to the Registrar by:
• cheque, money order or electronic means if the payment is made direct to the CSA; or
• payment through a payment agency or financial institution by a means capable of being processed by the payment agency or financial institution.
Payments continue to be made and accepted under arrangements that existed prior to the General Manager of the CSA becoming Registrar, by payment methods as set out in the proposed Regulation. This applies to all payments which are paid to the Registrar, including payments made directly by a payer, payments paid by a payee towards a consolidated revenue debt, payments made by an employer who has made deductions from the payer's salary and payments by a third party such as a bank. The Regulations will formalise these arrangements and address the regulatory gap.
The Regulations commenced on gazettal.
Overview
The Child Support (Registration and Collection) Amendment Regulations 2004 (No. 1), enacted in 2004, were introduced to address the regulatory gap left by the transition of child support law administration from the Commissioner of Taxation to the Secretary of the Department of Family and Community Services. These Regulations were made under Section 125 of the Child Support (Registration and Collection) Act 1988, which empowers the Governor-General to make regulations necessary for the effective implementation of the Act. The primary objective of these Regulations was to prescribe the methods by which child support debts could be paid to the Registrar, thus ensuring continuity and formalising the payment processes that were already in place. This legislative amendment aimed to streamline the payment procedures for child support debts, allowing payments to be made through the Child Support Agency, designated payment agencies, or financial institutions, and by various means including cheque, money order, and electronic payment.
Scope and Application
The Child Support (Registration and Collection) Amendment Regulations 2004 (No. 1) amends the Child Support (Registration and Collection) Amendment Regulations 1988 to prescribe the specific methods by which child support debts can be paid to the Registrar. These regulations apply to all child support debts payable under the Child Support (Registration and Collection) Act 1988, including those made directly by payers, payments made by payees towards consolidated revenue debts, employer deductions from salaries, and payments by third parties such as banks. The Regulations establish that child support debts can be paid to the Registrar at the Child Support Agency (CSA), a payment agency that accepts such payments under an arrangement with the CSA, or a financial institution that maintains an account for receipt of such payments under an arrangement with the CSA. Additionally, the Regulations specify that payments can be made by cheque, money order, electronic means if paid directly to the CSA, or through a payment agency or financial institution by means capable of being processed by the agency or institution. These amendments formalise existing arrangements and address a regulatory gap, ensuring that all payments are made in accordance with the prescribed methods.
Key Provisions
The Child Support (Registration and Collection) Amendment Regulations 2004 (No. 1) address key provisions regarding the payment methods for child support debts to the Registrar, as stipulated in section 125 of the Child Support (Registration and Collection) Act 1988. The main operative sections of these Regulations (sections 3 and 4) specify that child support debts can be paid to the Registrar at the Child Support Agency (CSA), a payment agency that has an arrangement with the CSA, or a financial institution that maintains an account for such payments under an arrangement with the CSA. Additionally, the Regulations allow for these debts to be paid by cheque, money order, or electronic means if made directly to the CSA, or through a payment agency or financial institution using a method that these entities can process. These provisions provide flexibility and clarity in how child support debts can be remitted, ensuring they reach the Registrar through approved channels.
The obligations imposed by these Regulations on parties involved in child support payments are designed to streamline the process and ensure compliance with the Act. The Registrar, now the General Manager of the CSA, must ensure that all payments are made through the specified methods and entities. Payment agencies and financial institutions must adhere to the arrangements established with the CSA to facilitate these payments. Payers of child support, whether directly or through intermediaries like employers or third parties, are required to use the prescribed methods and entities for their payments to ensure they are correctly credited to the Registrar. These obligations are crucial for maintaining the integrity and efficiency of the child support system.
Failure to comply with the provisions set out in the Child Support (Registration and Collection) Amendment Regulations 2004 (No. 1) may result in civil or criminal consequences. While specific penalties are not detailed in the explanatory statement, breaches of the Act or Regulations could potentially lead to legal actions under the broader legislative framework. The consequences might include financial penalties, enforcement actions by the Registrar, or even legal proceedings against individuals or entities that fail to adhere to the prescribed payment methods. Ensuring compliance is essential to avoid these potential repercussions and to maintain the proper functioning of the child support system.