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 2021:
- the annualised MTAWE figure for the quarter ending on 30 June 2020 is $78,957; and
- the Costs of the Children Table, incorporating the annualised MTAWE figure of $78,957 and other amounts in the table worked out using this figure, is the following table headed 2021 Costs of the Children Table.
[signed]
Kathryn Campbell
Secretary
8 December 2020
2021 Costs of the Children Table | | |
Parents' combined Child Support Income (above the self support amounts)1 |
No. of | $0 | $39,480 | $78,958 | $118,437 | $157,915 | Income |
Children | to | to | to | to | to | over |
| $39,479 2 | $78,957 3 | $118,436 4 | $157,914 5 | $197,393 6 | $197,393 6 |
| Costs of children (to be apportioned between parents) |
Children aged 0 - 12 years |
1 child | | $6,711 | $12,633 | $17,370 | $21,318 | $24,082 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
2 children | | $9,475 | $18,555 | $26,451 | $33,557 | $37,505 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
3 + children | | $10,659 | $20,923 | $30,793 | $40,268 | $47,374 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
Children aged 13 + years |
1 child | | $9,080 | $17,765 | $22,502 | $26,450 | $30,003 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
2 children | | $11,449 | $22,503 | $32,373 | $40,269 | $45,401 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
3 + children | | $12,633 | $24,871 | $36,715 | $48,164 | $56,060 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
Children of mixed age |
2 children | | $10,462 | $20,529 | $29,412 | $36,913 | $41,453 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
3 + children | | $11,646 | $22,897 | $33,754 | $44,216 | $51,717 |
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 | |
| $39,479 | $78,957 | $118,436 | $157,914 | |
| | | | | | |
1 | Calculated by adding the parents' Child Support Incomes i.e. each parent’s adjusted taxable income |
| 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 of child support liabilities, ensuring that child support contributions are calculated fairly and consistently. This Act was introduced to address the problem of ensuring that children receive adequate financial support from both parents, regardless of whether the parents are separated or divorced. The policy objective of this Act is to facilitate a more predictable and equitable system for the financial support of children, reflecting the best interests of the child. Enacted by the Parliament of Australia, the Act outlines the methodology for calculating child support, including the use of the Minimum Total Assessable Weekly Earnings (MTAWE) figure, which is adjusted annually to reflect changes in the cost of living. This legislative framework aims to promote responsible parenting and ensure that children's financial needs are met by both parents, supporting their well-being and development.
Scope and Application
The Child Support (Assessment) Act 1989 applies to all parents in Australia who are responsible for providing financial support for their children, including those in de facto relationships, and to any other individuals or entities involved in child support assessments and calculations. The Act operates at the Commonwealth level, governing child support arrangements across the entire nation. It sets out the methodology for calculating child support, including the use of the Median Taxable Employment Wage Estimator (MTAWE) and the Costs of Children Table, which are used to determine the financial contributions parents must make. The Act specifies the thresholds and rates at which child support is calculated based on the combined income of the parents and the number of children involved. There are no exclusions mentioned within the Act itself, though specific exemptions or exclusions may be detailed in subordinate instruments or regulations. The Act's application is extended or restricted through these instruments, which provide further detail and context to the general provisions of the Act.
Key Provisions
The Child Support (Assessment) Act 1989 outlines specific requirements and provisions for the assessment of child support, particularly for the year 2021. Section 155(2) of the Act mandates the annual publication of the Median Taxable Annual Wage Entitlement (MTAWE) figure, which for 2021 is set at $78,957 for the quarter ending 30 June 2020. This figure is crucial for calculating child support payments and is used in the Costs of the Children Table provided within the Act. The table specifies the costs of children based on their age and the combined child support income of the parents, determining the proportion of these costs each parent must contribute.
The Act imposes several obligations on the parties it governs. Firstly, it requires parents to accurately report their incomes to ensure the correct calculation of child support payments. These incomes are then used to determine the parents' combined Child Support Income, which is compared against the MTAWE figure to ascertain the applicable costs of children as per the Costs of the Children Table. Additionally, the Act mandates that any changes or updates to the MTAWE figure and the Costs of the Children Table be published promptly to ensure all calculations are based on the most current figures.
Failure to comply with the provisions of the Child Support (Assessment) Act 1989 can result in both civil and criminal consequences. Under the Act, individuals who deliberately provide false or misleading information to avoid paying child support may face significant penalties. Civil penalties can include financial penalties and legal fees, while criminal penalties may involve fines or imprisonment. For example, under section 158 of the Act, a person who knowingly provides false information can be subject to fines of up to $22,000 or imprisonment for up to two years, or both. This stringent enforcement aims to ensure that child support payments are accurately calculated and disbursed, supporting the welfare of children involved.