Explanatory Memorandum
(Circulated by the authority of the Treasurer,the Hon John Dawkins MP)General Outline and Financial Impact
The Child Support Legislation Amendment Bill 1992 will amend the Child Support (Assessment ) Act 1989 and the Child Support (Registration and Collection ) Act 1988 by making the following changes:
The Child Support (Assessment) Act 1989
Eligibility of a child subject to a child welfare law.
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- Extends the eligibility to obtain an administrative assessment to parents and relatives of a child who is the subject of a child welfare law.
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- Proposal announced: Announced in the second reading speech for the Law and Justice Legislation Amendment Bill No. 2 1991.
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- Financial impact: This amendment is at no cost.
Administrative review of child support assessments.
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- Provides a system of administrative review for child support assessments including some consequential changes.
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- Proposal announced: 1991-92 Budget.
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- Financial impact: This amendment has an estimated cost of $ 0.08m in 1991-92, $ 0.32m in 1992-93 and $ 0.45m in 1993-94.
Special provisions for pensioners with consent orders.
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- Ensures that a consent departure order and a consent order for payment of child support in the form of non periodic amounts entered into by a pensioner is scrutinised by the Registrar of the Court before a determination or order is made.
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- Proposal announced: Not previously announced.
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- Financial impact: There is no cost in this amendment but it ensures Social Security outlays are protected.
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- Clarifies section 139 regarding urgent maintenance orders and removes an anomaly.
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- Proposal announced: Not previously announced.
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- Financial impact: This amendment is at no cost.
Elections to end an administrative assessment.
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- Removes the ability of pensioners to elect to end their child support liability under a child support assessment.
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- Proposal announced: Not previously announced.
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- Financial impact: This amendment is at no cost and will ensure Social Security outlays are protected.
The overlapping liability provisions.
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- Removes the overlapping provisions in section 152 and inserts a provision to end orders and agreements for a child when an assessment issues for the child.
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- Proposal announced: Not previously announced.
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- Financial impact: This amendment is at no cost.
The Child Support (Registration and Collection )Act 1988
Private receipt of maintenance for pensioners.
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- Allows pensioners an option to receive amounts privately that are due under an administrative assessment.
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- Proposal announced: 1991-92 Budget.
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- Financial impact: The estimated cost of this measure to the Agency is $0.60m in 1991/92, $1.2m in 1992/93 and outyears offset by estimated savings to Department of Social Security of $0.48m in 1991/92, $2.98m in 1992/93, $2.42m in 1993/94 and $2 6m in 1994/95.
Child support debt due to the payee when enforced overseas, the Commonweath acting as the collection agent
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- A registered child support liability is a debt due to the payee and not to the Commonwealth when it is being enforced overseas by the Commonwealth for the payee.
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- Proposal announced: Not previously announced.
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- Financial impact: This amendment will have no cost but an unquantifiable reduction in Social Security outlays could follow.
Registrar to credit payment against a registered liability.
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- Broadens the range of non agency payments that can be accepted by the Registrar and credited against the liability of the non custodian to the Commonwealth.
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- Proposal announced: Not previously announced.
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- Financial impact: This amendment will have no cost but an unquantifiable reduction in Social Security outlays could follow.
Payment and recovery of child support debts.
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- Provides two general garnishment powers to enable the Registrar to recover amounts that are due to the Commonwealth.
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- Proposal announced: Not formally announced; to be announced in the second reading speech.
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- Financial impact: This amendment is at no cost but an unquantifiable reduction in Social Security outlays could follow.
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- Allows the Registrar in any proceeding under this Act to have a court set aside or restrain the making of an instrument or disposition by a party to defeat an order of the court or the payer's capacity to meet payments under a registered liability.
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- Proposal announced: Not previously announced.
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- Financial impact: This amendment is at no cost but an unquantifiable reduction in Social Security outlays could follow.
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