Explanatory Memorandum
(Circulated by the authority of the Treasurer,the Hon John Dawkins MP)CHAPTER 2
THE CHILD SUPPORT ASSESSMENT ACT 1989
REVIEW OF ADMINISTRATIVE ASSESSMENT OF CHILD SUPPORT
The process to allow the administrative review of child support assessments.
THE CHILD SUPPORT (ASSESSMENT) ACT 1989
REVIEW OF ADMINISTRATIVE ASSESSMENT OF CHILD SUPPORT
Summary of proposed amendments
2.1. The Bill will introduce to the child support legislation a process for the administrative review of a child support assessment.
2.2. From 1 October 1989 custodians of eligible children can only obtain child support by applying for an administrative assessment from the Registrar of Child Support. An amendment to the Family Law Act 1975 which took effect at the same time precluded applications being made under that Act to a court for maintenance if child support could be obtained under the Child Support (Assessment ) Act.
2.3. In the absence of a private agreement, the only method that is available at present to have the assessment reviewed is through the formal court process and specific provisions are set out in Division 4 of Part 7 of the Act under which they can be reviewed. A decision to have the assessment reviewed by a court is at the cost of the person initiating action and this can be considerable.
2.4. On the grounds of equity and justice an administrative review process should also be available to the parties and thus avoid the cost of an enforced application to a court as a first step in the review process.
Explanation of the proposed amendment
2.5. The Registrar will be empowered to review administrative assessments and it will apply to all assessments, whether an original assessment or the annual re assessment, providing it is for a period after 30 June 1992 [Clause 5.98A]. It will be available to both parties and application can be made at any time during the course of the assessment period [Clause 5.98B]. The grounds of appeal are identical to the grounds already set out in the law at section 117(2) for the court and all parts of that will apply to the review officer. No other grounds can be entertained and an application cannot proceed to determination unless one or more of the specified grounds exist and the Registrar is satisfied that it would be just, equitable and otherwise proper to make a determination[Clause 5.98C].
2.6. The Registrar may refuse to make a determination, if in the application, the grounds have not been addressed or it would be otherwise not just, equitable and proper to make a determination[Clause 5.98F]. If the grounds have been properly established in the application, the other party is to be advised that a valid application for review has been lodged and will be provided with a copy of the application to show the grounds relied upon. They will be invited to reply and make any representations they think relevant [Clause 5.98G].
2.7. The review will be conducted by a Child Support Review Officer who will be engaged by the Registrar for that single purpose and will exercise a delegated authority from the Registrar under section 149 of the Act to make a determination on the application [Clause 5.98H]. They will be employed by the Registrar but will provide an independent review of administratively assessed child support.
2.8. Applications for review will be made on an approved form which will set out the precise grounds upon which a determination can be made [Clause 5.98E].
2.9. Determinations that may be made are the same as a court may order under section 118 and all those provisions are repeated in the amendment to apply to determinations [Clause 5.98D].
2.10. Before a determination is made the parties may agree either to a determination by consent or to a consent agreement [Clause 5.98J] and if the agreement is a valid agreement the Registrar must accept it [Clause 5.98K]. However, where the custodian is in receipt of an income tested pension, allowance or benefit the Registrar must be satisfied that it is just, equitable and otherwise proper that the consent determination should be made or the consent agreement accepted [Clause 5.98K(2)]. Again, the existing provisions that apply to the court will apply to the Registrar (sections 117{4} to{9}) [Clauses 5.98C(3) and 5.98K(3)].
2.11. Any number of applications may be lodged during the currency of an assessment [Clause 5.98L(1)] but the Registrar may refuse to make a determination if there is no new matter submitted for consideration with any subsequent application [Clause 5.98L(2)].
2.12. The amendment will apply to all administrative assessments that commence on and after 1 July 1992.
Clauses involved in the amendment
Clause 2: proposes that the Act proposed by the Bill will commence on the date it is given the Royal Assent but will apply only to assessments effective from 1 July 1992..
Clause 5: inserts a new Part 6A after Part 6 in the Act "Departure from Administrative Assessment of Child Support".