Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2023

Administered by Department of the Treasury

Legislation au F2023L00538 In force Legislative Instrument

Legislation content

Explanatory Statement

 

Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2023

 

 

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 $27,509; 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 2022–23 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 no additional regulatory impacts as the 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 2023.

 

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 16 March 2023 seeking feedback and comments until the closing date of 14 April 2023. 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 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 2023

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 2023, F2023L00538, was enacted to address a gap in the existing legislative framework concerning the annual income tax return obligations of liable and recipient parents under a child support assessment. This legislative instrument was introduced to ensure compliance with the Income Tax Assessment Act 1936 by requiring these parents to lodge an income tax return, even if they might not otherwise be mandated to do so. The Australian Parliament enacted this legislation to clarify the obligations of these parents and to ensure they meet their tax obligations. The policy objective is to facilitate the accurate assessment of child support by ensuring that both liable and recipient parents provide their income details through the required tax returns.

Scope and Application

The Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2023 applies to all liable and recipient parents under a child support assessment, mandating them to lodge an income tax return for the specified income year. This requirement extends to those who may not otherwise be obligated to lodge a return, ensuring that their adjusted taxable income is accurately reported for child support assessments. The geographic reach of this instrument is national, as it operates under the Commonwealth of Australia and is applicable across all states and territories. However, the instrument provides exemptions for parents whose income was less than $27,509 for the year and who received specified Australian Government pensions, allowances, or payments for the whole of the 2022-23 income year. Additionally, the instrument allows for the Commissioner to defer the time for lodgment of a return and to issue notices of requirement to lodge a return or to provide information, with penalties for non-compliance. This legislative instrument is registered on the Federal Register of Legislation and is effective from the day after its registration.

Key Provisions

This legislative instrument requires all liable and recipient parents under a child support assessment to lodge an income tax return for the income year ended 30 June 2023, even if they may not otherwise be required to do so (sections 4, 8). This is mandated under section 161 of the Income Tax Assessment Act 1936 (ITAA 1936). The return must be lodged by the specified due date and must be in the approved form (sections 4, 7(a)). The Commissioner may defer the time for lodgment of a return as specified in the instrument (section 7(b)). Furthermore, the instrument ensures that nothing in it prevents the Commissioner from issuing a notice of requirement to lodge a return or to provide information under sections 162 or 163 of the ITAA 1936 (section 7(c)). It also highlights that penalties for non-compliance with lodgment requirements may apply (section 7(d)). The obligations imposed by this Act require liable and recipient parents under a child support assessment to lodge an income tax return for the income year, unless their income calculated under the instrument was less than $27,509 and they received one or more Australian Government pensions, allowances, or payments listed in Table C of the instrument for the whole of the 2022–23 income year (section 8). The instrument notifies these parents of their obligation to lodge a return and specifies when they must lodge it, the manner of lodging, and the potential penalties for non-compliance (section 9). There are potential civil consequences for breaches of this legislative instrument. Specifically, penalties may apply for non-compliance with the lodgment requirements (section 7(d)). The exact nature of these penalties is not specified in the text, but generally, penalties for failing to lodge a tax return can include fines and interest on any unpaid tax. The maximum penalties are not stated in the instrument but would be determined according to the provisions of the ITAA 1936 and any related regulations. It is important to note that these penalties could vary based on the severity and circumstances of the non-compliance.

Legal classification tags

Area of Law
Taxation Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Compliance Obligations
Penalties for Non-Compliance

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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.