EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 148
Issued by the Authority of the Minister for Families, Community Services and Indigenous Affairs
Child Support (Registration and Collection) Act 1988
Child Support (Registration and Collection) Amendment Regulations 2006 (No. 1)
The Child Support (Registration and Collection) Act 1988 (the Act) provides for the enforcement of parents’ child support liabilities for their children.
Section 125 of the Act provides that the Governor‑General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 72AA of the Act provides a mechanism by which deductions may be made from the social security pension or benefit of a person who is the payer of an enforceable maintenance liability arising from a child support assessment.
The Child Support (Registration and Collection) Regulations 1988 (the Principal Regulations) prescribe matters relevant to the enforcement of parents’ child support liabilities for their children. Regulation 5E prescribes the periodic deductions that may be made from a parent’s social security pension or benefit under section 72AA of the Act. Such a deduction is to be calculated at no less than $5 per week, which is the weekly equivalent of the current minimum annual rate of child support of $260.
The Regulations amend the Principal Regulations to reflect a change to be made to section 66 of the Child Support (Assessment) Act 1989 (the Assessment Act) by the Child Support Legislation Amendment (Reform of the Child Support Scheme – Initial Measures) Act 2006 (the Amending Act), with effect from 1 July 2006. The change made by the Amending Act is to increase the minimum annual rate of child support to $320, as indexed from time to time. Regulation 5E of the Principal Regulations is amended as a consequence of the change made to section 66.
The Regulations commence on the commencement of Schedule 1 to the Amending Act, with effect from the later of 1 July 2006 or the day after Royal Assent to the Amending Act, to coincide with the commencement of the amendments to section 66 of the Assessment Act.
Consultation
No consultation in relation to these regulations was undertaken because they do not have a direct or significant indirect impact on business and do not restrict competition.
Details of the Regulations
Regulation 1 – Name of Regulations
This regulation provides that the title of the regulations is the Child Support (Registration and Collection) Amendment Regulations 2006 (No. 1).
Regulation 2 – Commencement
This regulation provides for the regulations to commence on the commencement of Schedule 1 to the Amending Act, to coincide with the commencement of the amendments to be made by the Amending Act to section 66 of the Assessment Act, with effect from the later of 1 July 2006 or the day after Royal Assent to the Amending Act.
Regulation 3 – Amendment of Child Support (Registration and Collection) Regulations 1988
This regulation provides that the Child Support (Registration and Collection) Regulations 1988 (the Principal Regulations) are amended as set out in Schedule 1.
Schedule 1 – Amendments
Items [1] and [2] – paragraphs 5E(1)(a) and (2)(a)
Regulation 5E of the Principal Regulations prescribes the periodic deductions that may be made from a parent’s social security pension or benefit under section 72AA of the Child Support (Registration and Collection) Act 1988. Such a deduction is to be calculated at no less than $5 per week, which is the weekly equivalent of the current minimum annual rate of child support of $260. These items change the specific reference to $5 per week to ‘the minimum rate per week’, as defined in the new provision inserted by item [3].
Item [3] – after subregulation 5E(2)
This item inserts a new subregulation 5E(3), containing new definitions of ‘minimum annual rate of child support’ and ‘minimum rate’. The ‘minimum annual rate of child support’ is the amount worked out under section 66 of the Assessment Act (as amended by the Amending Act). However, whereas the amount under section 66 is worked out with reference to a child support period (a period generally of 15 months), the amount is worked out for regulation 5E with reference to a calendar year, because this better suits the Centrelink payment system for which regulation 5E operates. The new minimum annual rate provided by section 66 of the Assessment Act is $320, as indexed from time to time. The ‘minimum rate’ definition converts the minimum annual rate to a weekly rate, using specific rounding rules that will suit the Centrelink payment system.
Overview
The Child Support (Registration and Collection) Amendment Regulations 2006 (No. 1) were introduced to align the enforcement mechanisms of the Child Support (Registration and Collection) Act 1988 with the increased minimum annual rate of child support set by the Child Support Legislation Amendment (Reform of the Child Support Scheme – Initial Measures) Act 2006. The Act was enacted by the Commonwealth Parliament to establish a framework for the registration and collection of child support payments, aiming to ensure that children receive adequate financial support from their parents. These Regulations, issued under the authority of the Minister for Families, Community Services and Indigenous Affairs, amend the existing Child Support (Registration and Collection) Regulations 1988 to reflect the new minimum annual rate of child support, which was increased from $260 to $320, with effect from 1 July 2006. The Regulations were designed to ensure that deductions from social security pensions or benefits for child support liabilities are consistent with the updated minimum annual rate, thereby maintaining the integrity and effectiveness of the child support scheme.
The amendments made by these Regulations do not require consultation as they do not significantly impact businesses or restrict competition. Instead, they serve to update the enforcement mechanisms to match the changes in the statutory minimum child support amount, ensuring that the regulatory framework remains current and effective in supporting the intended policy objectives of the Child Support (Registration and Collection) Act 1988.
Scope and Application
The Child Support (Registration and Collection) Act 1988 applies to individuals who are parents or guardians responsible for paying child support for their children. This legislation is applicable across Australia, being a Commonwealth Act, and governs the enforcement of child support liabilities. The Act authorises the making of regulations to specify the details necessary for its implementation, as outlined in section 125. Notably, section 72AA allows for deductions from a payer's social security pension or benefit to satisfy an enforceable maintenance liability. The Child Support (Registration and Collection) Amendment Regulations 2006 (No. 1) further elaborate on these provisions by amending the Principal Regulations to align with the updated minimum annual rate of child support, set at $320 and subject to indexation, as introduced by the Child Support Legislation Amendment (Reform of the Child Support Scheme – Initial Measures) Act 2006. These Regulations also specify the minimum periodic deductions from a parent's social security pension or benefit, aligning with the new minimum annual rate and ensuring consistency with the Centrelink payment system. The Regulations took effect from 1 July 2006, coinciding with the commencement of the amending Act, thereby reflecting the legislative changes designed to adjust the minimum child support rates.
Key Provisions
The Child Support (Registration and Collection) Amendment Regulations 2006 (No. 1) amends the Child Support (Registration and Collection) Regulations 1988 in response to changes made by the Child Support Legislation Amendment (Reform of the Child Support Scheme – Initial Measures) Act 2006. The primary changes include the adjustment of the minimum child support rate from $260 per year to $320 per year, as detailed in section 66 of the Child Support (Assessment) Act 1989. Regulation 5E of the Principal Regulations is altered to reflect this change, ensuring that the periodic deductions made from a parent’s social security pension or benefit are consistent with the new minimum annual rate. The weekly deduction, previously set at $5, is now to be calculated based on the 'minimum rate per week', as defined by the new subregulation 5E(3) inserted by these Regulations.
These amendments impose specific obligations on the Centrelink system to adjust the calculation of child support deductions in line with the new minimum annual rate. The Centrelink payment system must now convert the annual minimum rate to a weekly rate according to the specific rounding rules outlined in the new subregulation. This ensures that the deductions are correctly applied and that parents are not over or under-assessed for child support payments. The regulations also clarify that the minimum rate is to be calculated with reference to a calendar year, aligning with the payment cycles used by Centrelink.
Breach of these regulations could lead to incorrect child support assessments, potentially resulting in overpayment or underpayment of support. While the regulations themselves do not specify penalties for non-compliance, any errors in the application of these provisions could lead to investigations under the broader Child Support (Registration and Collection) Act 1988. Such investigations might result in administrative actions or legal proceedings to correct the child support assessments. The consequences of incorrect assessments could include financial penalties or the need for corrective payments, which could be pursued through the courts if necessary.