Explanatory Memorandum
(Circulated by authority of the Minister for Family and Community Services, Senator the Hon Jocelyn Newman)Chapter 9 - Notification Requirements
Overview
9.1 Schedule 9 of the Bill will amend the notification requirements contained in the Child Support (Assessment) Act 1989 (the Assessment Act) and the Child Support (Registration and Collection) Act 1988 (the Registration and Collection Act).
9.2 Part 1 of Schedule 9 of the Bill will amend the Assessment Act to modify the date of effect of information provided to or obtained by the Registrar.
9.3 Part 2 of Schedule 9 of the Bill will amend the Assessment Act and the Registration and Collection Act to modify the manner in which information must be provided to the Registrar.
Summary of the amendments
Effective Date of Notification
9.4 The proposed amendments will make variations to a person's child support liability brought about by a change of circumstances, effective only from the date the Registrar is notified of the change.
Manner of Providing Information
9.5 The proposed amendments will enable the Registrar to specify the manner in which different information is required to be provided, including verbally or by electronic means.
9.6 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 on 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
Effective Date of Notification
9.7 The Registrar regularly receives information regarding changes in the circumstances of parties to an administrative assessment. This information often results in an amendment to the child support assessment being back dated to the time that the change in circumstances took place. This can result in overpayments to carers, causing financial hardship.
Manner of Providing Information
9.8 The Registrar currently requires most information to be supplied on approved forms.
Explanation of the amendments
Effective Date of Notification
Notification of relevant dependent child
9.9 In working out a paying parent's child support liability, an allowance is given for a relevant dependent child of the paying parent.
9.10 The proposed amendments will mean that where a paying parent notifies the Registrar that they have a relevant dependent child the person's child support assessment will be amended to include that child from the date of notification to the Registrar. [Item 1 - insert new subsections 39(3)(a), (b), (e)]
9.11 There are two exceptions to the general rule. The Registrar will backdate the effect of notification of a relevant dependent child by up to 28 days where there has been notification within 28 days of the:
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- child becoming a relevant dependent child [Item 1 - insert new paragraph 39(3)(c)]
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- paying parent receiving a notice of assessment in which the relevant dependent child has not been provided for. [Item 1 - insert new paragraph 39(3)(d)]
9.12space paying parent will be taken to cease to have a relevant dependent child from the day that the child ceases to be dependent on the paying parent. This will apply regardless of when the Registrar is notified of that fact. [Item 1 - insert new subsection 39(4)]
Notification of change in level of care
9.13 The proposed amendments will mean that, where a parent notifies the Registrar of a change in the amount of time each parent has care of the child the amended assessment will have effect only from the date the Registrar is notified of the change. [Item 2 - insert new section74A]
Manner of Providing Information
9.14 The Registrar will no longer be required to collect information through a series of approved forms under either the Assessment Act [Item3 - repeal section 11] or the Registration and Collection Act. [Item20 - repeal subsection 4(2)]
9.15 The proposed amendments will enable the Registrar to specify the manner in which information will be provided under both the Assessment Act and the Registration and Collection Act. A new subsection will be inserted into the Assessment Act [Item 17 - insert new section 150A] and into the Registration and Collection Act [Item 21 - insert new section 16A] which will enable the Registrar to specify certain things, including:
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- the information to be provided
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- that the information be provided in a particular form
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- that the information may be provided orally
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- that the information may be provided electronically.
9.16 Consequential amendments are required to all sections which contain different rules about information being provided to the Registrar. These are to be replaced with one general rule allowing the Registrar to specify the manner in which the information is required to be provided.
9.17 Amendments are required to the Assessment Act. [Item 4 - repeal section 27, insert new section 27; Item 6 - repeal subsection 32(2) and 32(3), insert new subsection 32(2); Item 7 - amend subsection 32(4): Item 9 - repeal subsection 60(2), insert new subsection 60(2); Item 11 - repeal subsection 62(2), insert new subsection 62(2); Item 12 - repeal subsection 89(1), (2) and (3), insert new subsection 89(1); Item 13 - amend subsection 89(4); Item 14 - amend subsection 128(2); Item 15 - amend paragraph 128(4)(a); Item 19 - repeal subsection 151(2) and (3), insert new subsection 151(2).
9.18 Amendments are required to the Registration and Collection Act. [Item 22 - amend subsection 23(2); Item 23 - repeal subsection 23(3), insert new subsection 23(3); Item 24 - amend subsection 23(5); Item 25 - amend subsection 23(6); Item 26 - insert new subsection 23(6A); Item 27 - amend subsection 24(1); Item 28 - amend subsection 24(1); Item 29 repeal subsection 24(2), insert new subsection 24(2); Item 30 - amend subsection 25(1); Item 32 - repeal subsection 25(2) and (3), insert new subsections 25(2) and (3); Item 33 - amend subsection 28A(3); Item 35 - repeal section 32, insert new section 32; Item 36 - amend subsection 33(1); Item 38 - amend 33(3); Item 39 - amend subsection 34(1); Item 41 - amend subsection 35(1) and (2); Item 43 - repeal section 36, insert new section 36; Item 44 - amend section 37; Item 45 - amend subsection 37B(2); Item 47 - amend subsection 39A(4); Item 49 - amend subsection 39B(3); Item 51 - amend subsection 39B(5); Item 52 - amend subsection 44(3); Item 54 - repeal paragraph 47(1)(b), insert new paragraph 47(1)(b); Item 56 - amend subsection 47(1A); Item57 - amend subsection 47(3); Item 58 - amend subsection 71(b); Item 59 - insert 71(2); Item 60 - amend subsection 71A(b); Item 62 - amend subsection 111(1); Item 64 - amend subsection 111(2)]
9.19 Provisions of the Assessment Act, which expressly include the requirement to provide information in writing, will be amended to bring them in line with the general rule allowing the Registrar to specify the manner in which the information is required to be provided. [Item 5 - amend subsection 32(1); Item 7 - amend subsection 32(4); Item 8 - amend subsection 60(1); Item 10 - amend subsection 62(1A); Item 18 - amend subsection 151(1)]
9.20 A series of notes will be inserted into the Assessment Act to inform readers of the requirements. [Item 16 - insert note after subsection 128(4)]
9.21 A series of notes will be inserted into the Registration and Collection Act to inform readers of the requirements. [Item 31 - insert note after subsection 25(1); Item 34 - insert note after subsection 28A(3); Item 37 - insert note after subsection 33(1); Item 40 - insert note after subsection 34(1); Item 42 - insert note after subsection 35(2); Item 46 - insert note after subsection 37B(2); Item 48 - insert note after subsection 39A(4); Item 50 - insert note after subsection 39B(3); Item53 - insert note after subsection 44(3); Item 55 - insert note after subsection 47(1); Item 61 - insert note after subsection 71A; Item 63 - insert note after subsection 111(1)]