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 2020:
- the annualised MTAWE figure for the quarter ending on 30 June 2019 is $76,726; and
- the Costs of the Children Table, incorporating the annualised MTAWE figure of $76,726 and other amounts in the table worked out using this figure, is the following table headed 2020 Costs of the Children Table.
[signed]
Kathryn Campbell
Secretary
25 November 2019
2020 Costs of the Children Table | | |
Parents' combined Child Support Income (above the self support amounts)1 |
No. of | $0 | $38,364 | $76,727 | $115,090 | $153,453 | Income |
Children | to | to | to | to | to | over |
| | | | | | |
| Costs of children (to be apportioned between parents) |
Children aged 0 - 12 years |
1 child | | $6,522 | $12,276 | $16,880 | $20,716 | $23,401 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
2 children | | $9,207 | $18,030 | $25,703 | $32,608 | $36,444 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
3 + children | | $10,358 | $20,332 | $29,923 | $39,130 | $46,035 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
Children aged 13 + years |
1 child | | $8,823 | $17,263 | $21,867 | $25,703 | $29,156 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
2 children | | $11,125 | $21,867 | $31,458 | $39,131 | $44,118 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
3 + children | | $12,276 | $24,169 | $35,678 | $46,803 | $54,476 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
Children of mixed age |
2 children | | $10,166 | $19,949 | $28,581 | $35,870 | $40,282 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
3 + children | | $11,317 | $22,250 | $32,800 | $42,966 | $50,255 |
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 | |
| $38,363 | $76,726 | $115,089 | $153,452 | |
| | | | | | |
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. Costs of children do not increase above this cap. | |
|
Overview
The Child Support (Assessment) Act 1989 was enacted to provide a framework for the assessment and collection of child support in Australia, aiming to ensure that children receive adequate financial support from both parents, regardless of their living arrangements. The Act is administered by the Commonwealth Government through the Department of Social Services, with the overarching policy objective being to promote the financial responsibility of both parents in supporting their children. The Act addresses the problem of ensuring equitable financial contributions from both parents towards the upbringing and maintenance of their children, thereby reducing the financial burden on the state and promoting the well-being of children.
In 2019, the Secretary of the Department of Social Services, Kathryn Campbell, issued a notice under the Child Support (Assessment) Act 1989, updating the annualised Minimum Total Assessable Weekly Earnings (MTAWE) figure and the associated Costs of Children Table for the year 2020. This update ensures that child support assessments remain reflective of current economic conditions, thereby maintaining the effectiveness of the support system in meeting the needs of children. The 2020 Costs of Children Table provides specific rates for the costs of children based on the number of children and their ages, which are used to calculate the child support contributions from both parents.
Scope and Application
The Child Support (Assessment) Act 1989 applies to parents who are required to make or receive child support payments for children under the age of 18. The Act governs the assessment of child support liabilities for all parents, whether biological, adoptive, or step-parents, within the Commonwealth of Australia. It sets out the framework for calculating the amount of child support that parents are required to pay or receive based on their income and the number and age of their children. The Act also includes provisions for determining the Costs of Children Table, which provides the basis for calculating child support liabilities. The Act's application extends to all Australian states and territories, as it is a Commonwealth Act. The Act does not apply to child support arrangements that have been agreed upon by the parents or that have been determined by a court. The Act does not apply to payments made under other Commonwealth or state legislation, such as payments made under the Family Law Act 1975. The Act may be extended or restricted through subordinate instruments, such as regulations or rules, which may provide further detail on the calculation of child support liabilities or the application of the Act to specific circumstances.
Key Provisions
The Child Support (Assessment) Act 1989 (the Act) primarily establishes the framework for assessing child support obligations in Australia. Section 155(2) of the Act mandates that the Secretary of the Department of Social Services must publish an annual notice, detailing the Market Total Annual Wage Entitlement (MTAWE) figure and the Costs of the Children Table, which is used to calculate child support payments. For the year 2020, the MTAWE figure is set at $76,726 for the quarter ending on 30 June 2019. This figure is integral as it forms the basis for calculating the self-support amount, which is one-third of MTAWE, and it is also used in determining the costs of children, as outlined in the Costs of the Children Table.
Under the Act, parents are required to provide accurate information regarding their income and the number of children involved in the child support assessment. The Act mandates that each parent's adjusted taxable income (ATI) be calculated, and from this, their respective self-support amounts are derived. The combined Child Support Income (CSI) of both parents is then calculated, and this figure is used to determine the applicable cost of children from the Costs of the Children Table. This table provides a detailed breakdown of the costs associated with different numbers and ages of children, ensuring that the child support amounts are based on a fair and consistent methodology.
Failure to comply with the requirements of the Act can result in significant consequences. The Act imposes civil penalties for providing false or misleading information in the assessment process, with penalties up to 100% of the amount of child support that should have been paid but was not. Additionally, the Act also allows for the recovery of overpaid child support, with interest accruing on the amount overpaid. In cases where there is a deliberate intent to deceive or mislead, criminal penalties may apply, including fines of up to $12,600 for individuals and $63,000 for bodies corporate, reflecting the seriousness with which the Act treats breaches of its provisions.