Explanatory Memorandum
(Circulated by the authority of the Treasurer,the Hon John Dawkins MP)CHAPTER 8
THE CHILD SUPPORT REGISTRATION AND COLLECTION ACT 1988
REGISTRATION OF MAINTENANCE LIABILITIES.
Provide pensioners with a one time option to have child support paid privately.
THE CHILD SUPPORT (REGISTRATION AND COLLECTION ) ACT 1988
DIVISION 2 OF PART III
REGISTRATION OF MAINTENANCE LIABILITIES
8.1. The Bill will remove the compulsion for pensioners to have to register an administrative assessment for collection by the Registrar as soon as the assessment is raised.
8.2. There have been difficulties for Department of Social Security (DSS) staff when pensioners have been able to come to an amicable agreement with the liable parent and the agreement , having been made, needs to be examined to see if it meets DSS reasonable action for maintenance guidelines. There has been some scope for discretion in deciding in individual cases but it always had to be based on a calculation made by the Agency for DSS to enable them to decide whether the agreement meets the guidelines.
8.3. Part of the problem is the assessment made by the Agency may not have been correct in all cases (because no application had been lodged and the circumstances of the liable parent had to be assumed) and so the decision required to be made by DSS could not be based on a proven situation. In addition, the existing agreement may not constitute a legally enforceable liability and in the event of default by the liable parent, the custodian has no recourse at law.
8.4. There is a need therefore to ensure that decisions relating to maintenance are made based on the real situation. DSS, under their guidelines, will now require all pensioners to apply for an assessment when they apply for pension.
8.5. At the same time the pensioner will have the opportunity to receive the amounts directly and privately if that is their wish. If however they subsequently report that amounts are not being received in accordance with the assessment they will then be required to register for collection by the Agency under the DSS guidelines. Once registered they will not be able to either end the liability under the assessment unless a terminating event occurs or choose to opt out of collection because the existing section 38 prohibits that. What is being made available to pensioners is a one time opportunity to receive amounts privately and if that fails they must then register. It should be noted that there has never ever been a requirement for a non pensioner to have to register for collection.
Explanation of the proposed amendment
8.6. The Bill will amend section 24A by omitting paragraph (2)(a) in which the requirement for pensioners to register in all cases is contained [Clause 15].
8.7. The amendment will apply from the date the Royal Assent given to the Child Support Legislation (Amendment) Bill 1992 [Clause 2].
Clauses involved in the proposed amendment
Clause 2: proposes that the Act proposed by the Bill will commence on the date it is given the Royal Assent.
Clause 15: amends section 24A to omit paragraph (2)(a).