Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Year of Income Ended 30 June 2018

Administered by Department of the Treasury

Legislation au F2018L00622 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 Year of Income Ended 30 June 2018

 

 

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 is this instrument 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)           It 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 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 $24,535; 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 2017-18 income year.

 

(9)           Further, it 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 or minimal impacts for both implementation and ongoing compliance costs. The legislative instrument is minor or machinery in nature.

 

Background

 

(11)       Under changes to the Child Support (Assessment) Act 1989, which came into effect on 1 July 2008, a child support assessment relies on the 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 Year of Income Ended 30 June.  

 

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 19 February 2018 seeking feedback and comments for a period of two weeks. 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

 

This Statement is 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 Year of Income Ended 30 June 2018

 

This 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

 

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, even though they may not otherwise be required to lodge a return. Exemptions and conditions are identified in the instrument.

 

Human rights implications

 

This 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 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 Year of Income Ended 30 June 2018 was enacted in 2018 to address a gap in compliance with tax obligations for certain parents involved in child support assessments. This legislative instrument, issued under the authority of the Commissioner for Taxation, is designed to ensure that liable and recipient parents under a child support assessment comply with their tax obligations by lodging an income tax return for the specified income year. The policy objective is to align the tax filing requirements of these parents with the legislative changes introduced by the Child Support (Assessment) Act 1989, which now requires both liable and recipient parents to report their taxable income as part of the child support assessment process. The instrument specifies the due date for lodgment, provides details on the approved form for the return, and informs parents that penalties may apply for non-compliance. The instrument also exempts certain low-income parents receiving specified government benefits from this requirement.

Scope and Application

This legislative instrument applies to liable and recipient parents who are under a child support assessment as defined by the Child Support (Assessment) Act 1989. The Act mandates that these parents must lodge an income tax return for the specified income year, irrespective of whether they would ordinarily be required to do so. The instrument applies nationally across Australia, with the requirement being enforced under the authority of the Income Tax Assessment Act 1936. Exemptions from this requirement include parents whose income is less than $24,535 for the year and who received certain Australian Government pensions, allowances, or payments for the whole of the 2017-18 income year. The instrument extends its application through subordinate instruments, as permitted under the Acts Interpretation Act 1901, to specify the form and due dates for lodgment, and to allow for potential deferment of lodgment times by the Commissioner. Penalties for non-compliance are also stipulated within the instrument.

Key Provisions

The main operative sections of this legislative instrument, F2018L00622, require liable and recipient parents under a child support assessment to lodge an income tax return for the specified income year by the due date set out in the instrument (section 1). These parents may not otherwise be required to lodge a tax return, but this requirement overrides any other circumstances. The return must be in the approved form. The instrument is effective from the day after it is registered on the Federal Register of Legislation (section 4). This legislative instrument imposes specific obligations on liable and recipient parents under a child support assessment, mandating them to lodge an income tax return for the relevant income year by the specified due date (section 1). The return must be completed in the approved form. Furthermore, the instrument outlines the conditions under which these parents are required to lodge a return, which includes an income threshold and the receipt of certain government pensions, allowances, or payments for the whole year (section 8). The instrument also outlines the circumstances under which certain parents are exempt from this requirement. For example, if the income calculated under the instrument was less than $24,535 and the parent received one or more specified Australian Government pensions, allowances, or payments for the whole of the 2017-18 income year, they are exempt from the requirement to lodge a return (section 8). The Commissioner of Taxation may also defer the time for lodgment of a return specified in the instrument (section 7(b)). This instrument further stipulates that non-compliance with the lodgment requirements may result in penalties (section 7(d)). The instrument provides notice to these parents of their obligation to lodge and the due date for lodgment. It also sets out the approved form for lodgment and that penalties may apply if they do not comply with the requirements. In terms of penalties and consequences for breach, the instrument indicates that penalties for non-compliance with the lodgment requirements may apply (section 7(d)). However, the specific penalties are not detailed within the instrument itself. Generally, under Australian tax law, failure to lodge a tax return can result in a range of penalties, including fines and interest on any unpaid tax. The maximum penalty for failing to lodge a tax return can be significant, depending on the circumstances. The instrument also states that the Commissioner may issue a notice of requirement to lodge a return or information under section 162 or section 163 of the Income Tax Assessment Act 1936 (ITAA 1936) (section 7(c)). These sections of the Act provide for the Commissioner to take various actions in the event of non-compliance, including issuing a notice of requirement to lodge a return, imposing penalties, and taking legal action to recover unpaid tax. The specific penalties and consequences for breach would be determined by the Commissioner in accordance with the relevant provisions of the ITAA 1936.

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Legislative Instrument
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Definitions & Interpretation
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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.