Explanatory Memorandum
(Circulated by authority of the Minister for Family and Community Services, Senator the Hon Jocelyn Newman)Chapter 8 - Extension of Child Support For Secondary Students
Overview
8.1 Schedule 8 of the Bill will amend the Child Support (Assessment) Act 1989 (the Assessment Act) and the Child Support (Registration and Collection) Act 1988 (the Registration and Collection Act) to enable a carer to apply for a child support assessment to continue to the end of the school year in which a full-time secondary student turns 18.
Summary of the amendments
8.2 The proposed amendments will enable a carer to apply for a child support assessment to continue to the end of the school year in which a full-time secondary student turns 18.
8.3 On the day on which the Act receives Royal Assent and will not apply in relation to the part of the 1998-99 child support year that occurs before the 1998-99 commencing date. The amendments to the Registration and Collection Act will commence a day to be fixed by Proclamation, not more than 12 months after the day on which the Act receives Royal Assent.
Background to the legislation
8.4 A child turning 18 is a terminating event in relation to eligibility for child support under a child support administrative assessment or child support agreement. Under the Registration and Collection Act, a child attaining the age of 18 is a terminating event in relation to an enforceable maintenance liability.
Explanation of the amendments
Application for assessment or agreement to continue beyond child's 18th birthday
8.5 A carer entitled to child support may apply for an administrative assessment or a child support agreement to remain in force until the last day of the secondary school year in which an eligible child, who is a full-time secondary student, turns 18. This will only apply in relation to the school year in which the child turns 18 regardless of whether it is the final year of school and only for that year. If the application is for an agreement to continue, both the carer and the paying parent will need to sign the application. [Item 5 - insert section 151B]
8.6 An application must be made to the Registrar prior to the child turning 18, although the Registrar will have a limited discretion to accept an application after the child's 18th birthday if satisfied that there are exceptional circumstances. Where the Registrar accepts an application, the Registrar must notify the applicant (the carer) and the paying parent in writing. Both parties will have objection and appeal rights in relation to the particulars of the assessment. [Item 5 - insert section 151C]
8.7 If the Registrar accepts an application, the continuation of the assessment or agreement takes effect from the day before the child's 18th birthday and the child's 18th birthday is no longer a terminating event. [Item 5 - insert section 151D; Item 4 - insert note in subsection 12(1)]
8.8 Under the Registration and Collection Act, a child turning 18 is generally a terminating event. The definition of terminating event has been changed to reflect that a terminating event in relation to a child does not occur on the child's 18th birthday if the Registrar has accepted an application for the continuation of an assessment or agreement. The terminating event becomes the last day of the secondary school year in which the child turns 18. [Items 6 - repeal subsection 4(1) (subparagraph (c)(i) of the definition of terminating event) and insert new subsection 4(1) (subparagraph (c)(i) of the definition of terminating event); Item 7 - insert new subsection 4(1) (after paragraph (c) of the definition of terminating event, as paragraph (ca)); Item 8 - add note at end of subsection 34(1)]
8.9 The terms "full-time secondary education", "last day" and "secondary school" have been defined. [Items 1 - insert definition of "full-time secondary education" in section 5; Item 2 - insert definition of "last day" in section 5; Item 3 - insert definition of "secondary school" in section 5]