Male Total Average Weekly Earnings and the Costs of the Children Table for all child support periods starting in 2017

Overview

The Child Support (Assessment) Act 1989 was enacted by the Parliament of Australia to provide a framework for the assessment of child support payments. The Act aims to ensure that children receive adequate financial support from both parents, regardless of whether the parents are together or separated. This legislation addresses the gap in ensuring fair and consistent child support payments across Australia, by setting out a formulaic approach to calculating these payments. The policy objective of the Act is to promote the financial responsibility of parents towards their children and to reduce the financial burden on the government that arises from supporting children in single-parent families. This recent notification from the Secretary of the Department of Social Services updates the annualised Minimum Total Assessable Weekly Earnings figure, integral to the calculations under the Act, and provides the Costs of the Children Table for the year 2017, reflecting this updated figure.

Scope and Application

The Child Support (Assessment) Act 1989 applies to parents, guardians, and other individuals responsible for the care of children, as well as to entities and government bodies involved in the administration of child support payments. The Act governs the assessment and calculation of child support payments across Australia, ensuring that payments are fair and take into account the income and needs of both the paying party and the child. The Act's application is not limited by state or territory boundaries, as it is a Commonwealth Act, thereby providing a unified approach to child support assessment throughout the nation. However, the Act does not specify any exclusions or exemptions; it broadly applies to all individuals subject to child support obligations unless otherwise determined by the legislation. The Act may also be supplemented by subordinate instruments that provide additional guidelines or modify the application of the Act as necessary. The 2017 Costs of the Children Table, incorporating the annualised Minimum Total Assessable Weekly Earnings (MTAWE) figure of $72,462, is an example of how the Act’s application is extended to provide specific, updated financial benchmarks for the calculation of child support payments.

Key Provisions

The key operative sections of the Child Support (Assessment) Act 1989, as referenced in the notice under subsection 155(2), include sections that relate to the annualised MTAWE figure and the Costs of the Children Table. Section 155(2) specifies the process for updating the annualised MTAWE figure, which for the quarter ending on 30 June 2016, is determined to be $72,462. This figure is fundamental as it serves as the basis for calculating child support obligations. The Costs of the Children Table, which is also a critical component of the Act, incorporates this annualised MTAWE figure along with other calculated amounts to provide a comprehensive guide for determining child support payments. The Act imposes specific obligations on the parties it governs. It mandates that child support assessments must be based on the most recent annualised MTAWE figure. This means that for child support periods commencing in 2017, the figure of $72,462 must be used in conjunction with the Costs of the Children Table to ascertain the appropriate support payments. The Act also requires that any updates to these figures must be communicated in a timely manner, ensuring that all stakeholders are informed of the relevant financial benchmarks. In terms of potential consequences for breaches of the Act, the legislation does not explicitly outline specific offences or penalties within the notice itself. However, generally, non-compliance with child support obligations under the Child Support (Assessment) Act 1989 can lead to various civil or criminal consequences. These may include legal actions such as garnishee orders, fines, or even imprisonment in cases of wilful non-compliance. The severity of the penalties can depend on the nature and extent of the breach, with maximum penalties varying according to the specific provisions of the Act and other related laws. Additionally, the Act may provide mechanisms for enforcement, such as the involvement of the Child Support Agency in collecting overdue support payments. This could involve deductions from wages or other income sources, or other measures to ensure compliance. The precise details of enforcement actions and associated penalties would be governed by the broader legislative framework and administrative procedures established under the Act. It is important for all parties involved to adhere to the requirements set forth to avoid facing these potential consequences.