Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2020

Administered by Department of the Treasury

Legislation au F2020L00563 In force Legislative Instrument

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Explanatory Statement

 

Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2020

 

 

General outline of instrument

  1.                This legislative instrument requires liable and recipient parents under a child support assessment to lodge an income tax return for the income year, by the due date specified in this instrument. Such persons may not otherwise be required to lodge an income tax return. The return must be in the approved form.
  2.                This instrument is a legislative instrument for the purposes of the Legislation Act 2003.
  3.                Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

Date of effect

4.                   This instrument is effective from the day after it is registered on the Federal Register of Legislation.

 

What this instrument is about

5.                   The purpose of this instrument is to notify that liable and recipient parents under a child support assessment are required to lodge an income tax return for the income year consistent with section 161 of the Income Tax Assessment Act 1936 (ITAA 1936).

6.                   The instrument specifies the persons required to lodge and the due date for lodgment.

7.                   Additional lodgment information is also provided including that:

(a)                the return must be in the approved form

(b)                the Commissioner may defer the time for lodgment of a return specified in this instrument

(c)                nothing in this instrument prevents the Commissioner from issuing a notice of requirement to lodge a return or a notice of requirement to provide information under section 162 or section 163 of the ITAA 1936, and

(d)                penalties for non-compliance with lodgment requirements may apply.

 

What is the effect of this instrument

8.                   All persons who were either a liable parent or a recipient parent under a child support assessment are required to lodge a return unless:

(a)                their income calculated under the legislative instrument was less than $25,575; and

(b)                they received one or more Australian Government pensions, allowances or payments listed in Table C of the instrument for the whole of the 2019–20 income year.

9.                   Further, the instrument provides notice to a liable parent or a parent receiving child support under a child support assessment of their obligation to lodge and when they must lodge. It also sets out how they should lodge and that penalties may apply if they don’t lodge.

 

Compliance cost impact

10.               Minor – there will be minimal impact for both implementation and ongoing compliance costs. The legislative instrument is minor and machinery in nature.

 

Background

11.               Under the Child Support (Assessment) Act 1989, a child support assessment relies on the adjusted taxable income of both parents. This requires both a liable parent and a recipient parent to lodge an income tax return.

12.               A legislative instrument is made each year by the Commissioner to require this class of taxpayers to lodge a return under section 161 of the ITAA 1936 if they are parents who are party to a child support assessment. Certain parents are exempt from this requirement to lodge a return, based on an income threshold and the receipt of certain government pensions, allowances or payments for the whole year.

13.               This legislative instrument has been registered to oblige the persons mentioned above to lodge an income tax return, even though these taxpayers may not have a lodgment requirement under the legislative instrument Notice of Requirement to Lodge a Return for the Income Year Ended 30 June 2020.

 

Consultation

14.               Subsection 17(1) of the Legislation Act 2003 requires, before the making of a legislative instrument, that the Commissioner is satisfied that appropriate and reasonably practicable consultation has been undertaken.

15.               Public consultation has been undertaken. The draft legislative instrument and draft explanatory statement were published on the ATO Legal Database at ato.gov.au on 11 March 2020 seeking feedback and comments until the closing date of 8 April 2020. The ATO Legal Database sends emails and news feeds to direct subscribers such as tax professionals and other industry stakeholders. Consultation on the draft legislative instrument and draft explanatory statement was also announced on “What we are consulting about” at ato.gov.au. The response from the consultation process was limited but was supportive of the draft legislative instrument and draft explanatory statement.

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2020

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of this Disallowable Legislative Instrument

All persons who were either a liable parent or a recipient parent under a child support assessment are required to lodge an income tax return for the income year, even though they may not otherwise be required to lodge a return. Exemptions and conditions are identified in the instrument.

 

Human rights implications

This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms as it simply provides notice to those persons who are either the liable parent under a child support assessment, or a parent receiving child support under a child support assessment, of their obligations to lodge returns.

 

Conclusion

This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2020, enacted as F2020L00563, was introduced to address the need for certain parents under child support assessments to lodge an income tax return, even if they would not ordinarily be required to do so. This legislative instrument is governed by the Commissioner of Taxation under the authority of the Legislation Act 2003. The primary policy objective is to ensure that parents subject to child support assessments comply with their tax obligations for the relevant income year, aligning with the requirements set out in section 161 of the Income Tax Assessment Act 1936. This legislative measure is intended to provide clarity and enforce the necessity for these parents to lodge their tax returns by the specified due date, thereby maintaining the integrity of the child support assessment process.

Scope and Application

The legislative instrument F2020L00563, titled Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2020, applies specifically to liable and recipient parents who are subject to a child support assessment. These parents are required to lodge an income tax return for the specified income year, irrespective of whether they would otherwise be obligated to do so. The instrument specifies the persons required to lodge, the due date, and that the return must be in an approved form. Exemptions apply if the parent’s income is below a certain threshold and if they receive specified Australian Government pensions, allowances, or payments for the entire 2019–20 income year. The instrument also provides notice to the affected parents of their obligations, the potential for penalties for non-compliance, and the possibility of the Commissioner deferring the lodgment time. This legislative instrument has a Commonwealth jurisdiction and is minor in nature, with minimal compliance costs. This instrument extends the obligation to lodge an income tax return to parents under a child support assessment, a requirement that is otherwise not applicable to them under the Income Tax Assessment Act 1936. The instrument outlines the specific circumstances under which these parents must lodge their returns and provides clarity on the due date and penalties for non-compliance. The Commissioner retains the authority to defer lodgment times and to issue additional notices as required. The instrument is designed to ensure that all relevant parents comply with their tax obligations as part of their child support assessments.

Key Provisions

This legislative instrument, F2020L00563, establishes the requirement for liable and recipient parents under a child support assessment to lodge an income tax return for the income year ended 30 June 2020. Under section 161 of the Income Tax Assessment Act 1936 (ITAA 1936), these parents must lodge their returns by the due date specified in the instrument, even if they would not otherwise be required to do so (section 5). The instrument mandates that the return be in the approved form and provides for potential deferment of the lodgment time by the Commissioner (section 7). The instrument also clarifies that it does not preclude the Commissioner from issuing further notices under sections 162 or 163 of the ITAA 1936 and that penalties may apply for non-compliance (section 7). The obligations imposed by this instrument primarily concern liable and recipient parents under a child support assessment. These parents must lodge an income tax return for the specified income year unless their income was less than $25,575 and they received certain Australian Government pensions, allowances, or payments for the whole of the 2019–20 income year (section 8). The instrument notifies these parents of their obligation to lodge and the specific due date for lodgment. It also instructs them on the approved form for the return and warns of potential penalties for failing to comply with the lodgment requirements (section 9). For breaches of the requirements to lodge an income tax return as specified, penalties may apply. The instrument explicitly mentions that non-compliance with the lodgment requirements could lead to penalties (section 7). Although the specific penalties are not detailed in the explanatory statement, they would typically align with those stipulated under the ITAA 1936, which can include fines and interest on unpaid taxes. The instrument's impact on compliance costs is noted as minimal, indicating that the legislative changes are minor and primarily administrative (section 10). The legislative instrument is underpinned by the need to ensure accurate calculation of child support assessments, which depend on the adjusted taxable incomes of both parents. This requirement is derived from the Child Support (Assessment) Act 1989 and necessitates the lodgment of an income tax return by liable and recipient parents under a child support assessment (sections 11 and 12). The instrument’s registration is to enforce this annual obligation and provide notice to affected parents of their specific duties and the consequences of non-compliance. The consultation process undertaken by the Commissioner, as mandated by the Legislation Act 2003, was aimed at ensuring that stakeholders were informed and supportive of the legislative changes (sections 14 and 15). Additionally, the instrument has been assessed for compatibility with human rights, as required by the Human Rights (Parliamentary Scrutiny) Act 2011. The statement of compatibility affirms that the instrument does not engage any human rights or freedoms as it merely notifies parents of their obligations to lodge returns and does not impose any additional burdens that would infringe on their rights (sections 16 to 18).

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Taxation Law
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Legislative Instrument
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Definitions & Interpretation
Compliance Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.