Child Support (Assessment) Act 1989
Notice under subsection 155(2)
I, Kathryn Campbell, Secretary of the Department of Social Services, give notice under subsection 155(2) of the Child Support (Assessment) Act 1989 that, for all child support periods starting in 2019:
- the annualised MTAWE figure for the quarter ending on 30 June 2018 is $75,114; and
- the Costs of the Children Table, incorporating the annualised MTAWE figure of $75,114 and other amounts in the table worked out using this figure, is the following table headed 2019 Costs of the Children Table.
[signed]
Kathryn Campbell
Secretary
22 November 2018
2019 Costs of the Children Table | | |
Parents' combined Child Support Income (above the self support amounts)1 |
No. of | $0 to $37,5572 | $37,558 to $75,1143 | $75,115 to $112,6714 | $112,672 to $150,2285 | $150,229 to $187,7856 | Income over $187,785 |
Children |
|
| Costs of the children (to be apportioned between parents) |
Children aged 0 - 12 years |
1 child | | $6,385 | $12,019 | $16,526 | $20,282 | $22,911 |
17c for | plus 15c for | plus 12c for | plus 10c for | plus 7c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
2 children | | $9,014 | $17,652 | $25,163 | $31,923 | $35,679 |
24c for | plus 23c for | plus 20c for | plus 18c for | plus 10c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
3 + children | | $10,140 | $19,905 | $29,294 | $38,308 | $45,068 |
27c for | plus 26c for | plus 25c for | plus 24c for | plus 18c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
Children aged 13 + years |
1 child | | $8,638 | $16,901 | $21,408 | $25,164 | $28,544 |
23c for | plus 22c for | plus 12c for | plus 10c for | plus 9c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
2 children | | $10,892 | $21,408 | $30,797 | $38,308 | $43,190 |
29c for | plus 28c for | plus 25c for | plus 20c for | plus 13c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
3 + children | | $12,018 | $23,661 | $34,928 | $45,820 | $53,331 |
32c for | plus 31c for | plus 30c for | plus 29c for | plus 20c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
Children of mixed age |
2 children | | $9,953 | $19,530 | $27,980 | $35,116 | $39,435 |
26.5c for | plus 25.5c for | plus 22.5c for | plus 19c for | plus 11.5c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
3 + children | | $11,079 | $21,783 | $32,111 | $42,064 | $49,200 |
29.5c for | plus 28.5c for | plus 27.5c for | plus 26.5c for | plus 19c for | |
each $1 | each $1 over | each $1 over | each $1 over | each $1 over | |
| $37,557 | $75,114 | $112,671 | $150,228 | |
| | | | | | |
1 | Calculated by adding the two parents' Child Support Incomes (CSI), that is adding each parents’ |
| adjusted taxable income (ATI) minus their self support amount which is (1/3 of MTAWE) |
2 | 0.5 times MTAWE | | | | |
3 | MTAWE | | | | | |
4 | 1.5 times MTAWE | | | | |
5 | 2 times MTAWE | | | | |
6 | 2.5 times MTAWE. The costs of the children do not increase above this cap. |
|
[INITIALLED/DATED] Kathryn Campbell 22 November 2018
Overview
The Child Support (Assessment) Act 1989 was enacted to provide a framework for assessing child support obligations, ensuring that children receive adequate financial support from both parents. This legislation was introduced to address the problem of non-payment or inadequate payment of child support, which often left children in financially disadvantaged circumstances. The Act was enacted by the Parliament of Australia and aims to provide a fair and consistent approach to the assessment of child support liabilities.
The Act was amended by the notice issued under subsection 155(2) on 22 November 2018, by Kathryn Campbell, the Secretary of the Department of Social Services. This notice updated the annualised MTAWE figure for the quarter ending on 30 June 2018 to $75,114 and provided the Costs of the Children Table, incorporating this figure. This amendment ensures that the child support assessments remain current and reflective of the economic environment, thereby maintaining the effectiveness of the support provided to children.
Scope and Application
The Child Support (Assessment) Act 1989 governs the calculation and payment of child support in Australia. This Act applies to all parents or individuals who are responsible for the care of children, including those who have separated or divorced. It also encompasses various entities and industries involved in the administration and enforcement of child support obligations. The Act sets out the methodology for determining the income and assets of the parents, and it outlines the responsibilities and liabilities of those involved. Jurisdictionally, the Act operates at the Commonwealth level, meaning it has a national reach and applies to all states and territories within Australia. It is important to note that certain exclusions and exemptions may apply, such as for low-income earners or specific circumstances defined in the Act. The application of the Act can be extended or restricted through subordinate instruments, such as regulations or guidelines, which provide further detail on specific aspects of child support assessment and enforcement.
Key Provisions
The Child Support (Assessment) Act 1989, as amended by this notice, sets out the annualised Minimum Total Assessable Weekly Earnings (MTAWE) figure for the purposes of child support assessments commencing in 2019. Section 155(2) specifies that the annualised MTAWE figure for the quarter ending on 30 June 2018 is $75,114. This figure is used to calculate the Costs of the Children Table (section 155(1)), which outlines the costs associated with raising children for different income brackets and family compositions. The table details the costs of the children, which are to be apportioned between parents, based on their combined child support income, which is their adjusted taxable income minus their self-support amount.
The Act imposes specific obligations on parents involved in child support assessments. Section 155(1) requires that the Costs of the Children Table be used to calculate the child support payable by one parent to the other, depending on the combined child support income of both parents. The combined child support income is calculated by adding each parent's adjusted taxable income and subtracting their self-support amount, which is one-third of the MTAWE times a specified multiplier (sections 155(3) and 155(4)). The costs of the children do not increase above the specified cap, ensuring that there is a limit on the amount that can be claimed for child support purposes.
Failure to comply with the provisions of the Child Support (Assessment) Act 1989 can lead to various consequences. Section 120 of the Act stipulates that an individual who knowingly makes a false or misleading statement in an application for child support assessment can be liable for a penalty. The penalty for an individual is up to 2,000 penalty units (section 120(2)), while for a body corporate, the penalty can be up to 10,000 penalty units (section 120(3)). Additionally, section 121 provides that a person who wilfully obstructs an authorised officer in the exercise of their functions under the Act can be liable to a penalty of up to 1,000 penalty units. These penalties reflect the seriousness with which the Act treats non-compliance and the importance of accurate reporting in child support assessments.