Male Total Average Weekly Earnings and the Costs of the Children Table for all child support periods starting in 2016

Overview

The Child Support (Assessment) Act 1989 was enacted to provide a systematic approach to the assessment of child support payments, ensuring that both parents contribute fairly to the financial well-being of their children post-separation or divorce. This Act was introduced to address the need for a consistent and equitable method of calculating child support obligations, reflecting the varying circumstances of families. The policy objective of the Act is to ensure that children receive adequate financial support from both parents, thereby promoting their welfare and reducing the financial burden on government welfare systems. The enacting body for this Act is the Australian Parliament, which has the legislative authority to create laws that impact family law and social services within the country. The notice issued under subsection 155(2) by Finn Pratt, the Secretary of the Department of Social Services, highlights the annualised Maximum Total Assessable Weekly Earnings (MTAWE) figure for the specified quarter and the updated Costs of the Children Table, which is used to calculate child support payments. This notice is crucial for ensuring that the calculations are based on the most current economic data, thus maintaining the relevance and fairness of the child support regime.

Scope and Application

The Child Support (Assessment) Act 1989 applies to individuals who are parents, or are deemed to be parents, of a child under the age of 18, as well as to de facto parents and parents who are not married to each other but have a child together. The Act also applies to the Department of Social Services and other relevant entities involved in the assessment and collection of child support. The Act regulates the assessment and collection of child support payments in Australia and has a national reach, being a Commonwealth Act. The Act provides a framework for calculating the amount of child support that is payable, taking into account various factors such as the income of the parents and the number of children involved. The Act also sets out the rights and obligations of parents in relation to child support. There are no stated exclusions or exemptions to the application of the Act, although certain thresholds may apply in determining the amount of child support payable. The Act may be extended or restricted through subordinate instruments such as regulations or guidelines issued by the Department of Social Services.

Key Provisions

The Child Support (Assessment) Act 1989 sets out the requirements for calculating child support, with key provisions including the determination of the annualised Minimum Total Assessable Weekly Earnings (MTAWE) figure and the Costs of the Children Table. Under section 155(2), the Secretary of the Department of Social Services is required to issue a notice each year updating these figures for the subsequent child support period. For the year starting in 2016, the annualised MTAWE figure has been set at $71,256 for the quarter ending on 30 June 2015 (section 155(2)(a)). This MTAWE figure is then used to calculate the Costs of the Children Table, which provides a framework for determining the financial obligations of parents towards their children's support (section 155(2)(b)). The Act imposes specific obligations on the parties involved in child support assessments. Firstly, the Secretary of the Department of Social Services must ensure that the MTAWE figure is updated annually and that the Costs of the Children Table is calculated and published accordingly. This is crucial for maintaining the accuracy and relevance of child support calculations. Secondly, parents or caregivers who are subject to child support assessments must use the MTAWE figure and the Costs of the Children Table to determine their financial obligations. This ensures that child support amounts are calculated in a consistent and fair manner. Failure to comply with the requirements of the Child Support (Assessment) Act 1989 can result in various consequences. Under section 174, a person who contravenes any provision of the Act can be subject to civil penalties. The maximum penalty for such an offence is $2,200 for an individual and $11,000 for a body corporate, as stipulated in section 175. Additionally, section 176 outlines that in cases of serious or repeated breaches, the court may also order the payment of costs associated with the proceedings. These provisions are designed to enforce compliance and ensure that child support obligations are met effectively.