House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Community Services, the Hon Larry Anthony MP)

Schedule 10 - Technical amendments

Summary of proposed changes

Under this measure, a number of technical amendments will be made to correct and clarify minor matters in the child support legislation.

Explanation of the changes

The technical amendments made by this Schedule achieve the following:

•

Correct some references to other provisions and legislation, and terms used within the child support legislation. ( Items 1, 2, 4, 5, 23, 29, 30, 31, 32, 33 and 34 .)

•

Correct the exempt income amount for an additional child so that it applies in relation to the age of a child 12 months after the start of the child support period, instead of in relation to the age of the child at the time of the assessment or amendment. This is in line with the original intention for this provision. ( Items 3 and 6 .)

•

Allow the modification to the basic formula for administrative assessment in shared or divided care cases to apply to eligible children who have turned 18, and not just those aged under 18 as currently provided. ( Item 7 .)

•

Rectify a loophole under which any assessment of over $260 pa may be varied by the Registrar to an amount below $260. The intention is that this may only occur if both parents are, basically, eligible carers of the child or children in question. ( Items 8, 9 and 10 .)

•

Modify certain appeal provisions so that, if one of the parties to a child support arrangement has first sought internal review, either party may appeal to court, not just the one who sought internal review. ( Items 11, 12, 13, 14, 19 and 20 .)

•

Correct the formulae that apply to determining whether the costs of contact with a child, or child care costs, are so high as to justify a departure from the normal administrative assessment of child support. ( Items 15, 16, 17 and 18 .)

•

Modify the provision that allows child support to continue when a child turns 18 until the end of the school year so that child support ceases if the child should leave school before the end of the school year. ( Item 21 .)

•

Make sure that the continuation of child support once a child has turned 18 is based on the assumption that the child is still 17 for the purposes of the administrative assessment provisions. ( Item 22 .)

•

Modify the way late payment penalties are calculated to reflect 1998 changes to the legislation that allows child support to be paid weekly, fortnightly, four weekly or monthly instead of just monthly. ( Items 24, 25, 26, 27 and 28 .)

•

Allow a payee to object to the Registrar crediting an amount against the liability of a payer if the amount is credited under section 71C of the Registration and Collection Act, as is currently allowed for amounts credited under related provisions. ( Item 35 .)

Most of the amendments made under this measure commence on Royal Assent. However, some amendments that are necessary merely because of anomalies in amending legislation commence with retrospective effect to the date of the amending legislation so that there is no disruption to the correct effect of the provisions. The retrospective commencements are specified in clause 2 of the Bill.