Explanatory Memorandum
(Circulated by authority of the Minister for Family and Community Services, Senator the Hon Jocelyn Newman)Chapter 6 - Starting Date of Liability
Overview
6.1 Schedule 6 of the Bill will amend the Child Support (Assessment) Act 1989 (the Assessment Act) so that the start date of liability for applications for administrative assessment will be the date the application is made to the Registrar.
Summary of the amendments
6.2 The purpose of the amendments is to reduce arrears caused by backdating the start date of liability under an administrative assessment to a date prior to the day an application was made to the Registrar.
6.3 On the day on which the Act receives Royal Assent and will not apply to applications for administrative assessment made before the prescribed day.
Background to the legislation
6.4 Currently, where an application for administrative assessment is accepted by the Registrar under the Assessment Act the start date of the liability is determined by reference to one of three possible dates. This may be up to 28 days prior to the application having been made and can result in the paying parent having arrears of child support before they are notified of an assessment having been made.
6.5 The Joint Committee was concerned that the existing provisions which determine the start date of liability create substantial arrears, often before a paying parent is notified of their liability. The Joint Committee in Recommendation 43 proposed that the start date of liability be the day after the day on which an appeal under section 107 of the Assessment Act expires.
Explanation of the amendments
6.6 The proposed amendment partially addresses Recommendation43 and will provide that the start date of a liability under a child support assessment be the date the application is made to the Registrar. [Item 1 - repeal paragraph 31(1)(d)(i) and insert new paragraph 31(1)(d)(i)]