Watered down child support changes approved

On 29th June 2001 the Australian Senate debated and passed a very watered down version of the original Child Support Amendment bill. Labour and Democrat senators refused to allow any measure that would reduce the money paid to the custodial parent.

Gone is the relief of a 2 and 3% reduction in formula payments for those parents who have their children between 10 and 30 % per of time.

Gone is the relief afforded by a reduction in the top income amount of $110K to $79K.

The remains are hardly worth picking over!

1. A proposed reduction to exclude second income earnings or some overtime if you have a subsequent family to support – but the catch is you have to apply for a CS Review – Departure from Assessment and we all know how biased that scheme has become.

2. Payers with second families will be able to claim a 100% deduction for child support paid from household income when claiming entitlement to Family Tax Benefit

3. Departure Prohibition Orders (DPO) will now be issued by the Registrar (no court hearing required) to prevent a CSA debtor, who is deemed to be a persistently reluctant payer, from leaving the country. Appeal is by way of court hearing.

4. The CSA minimum of $260 pa can be reduced to nil for certain applications – i.e. disability pensions to nursing home residents and payments to prisoners.

5. Changes will give eligibility for a carer to claim CSA when a child is, for example, living with someone else other than their parents.

6. The Child Support Registrar is no longer the Commissioner of Taxation. The Child Support Registrar will be the General Manager of CSA – Cathy Argall. There will no longer be a Deputy Child Support Registrar.

7. There are some technical amendments to correct previous drafting errors and unintended consequences of prior amendments.

This is the result of Labour and Democrat objections to providing some relief for paying parents because the reductions would cause a loss of financial benefit for payees.

Lodge your protest with your Federal Member NOW!