House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Family and Community Services, Senator the Hon Jocelyn Newman)

Chapter 7 - Election By Carer To End Liability

Overview

7.1 Schedule 7 of the Bill will amend the Child Support (Assessment) Act 1989 (the Assessment Act) to allow a person in receipt of more than the minimum rate of Family Allowance to elect to end their administrative assessment where approval has been granted by the Secretary to the Department of Social Security (the Secretary).

Summary of the amendments

Purpose of the amendments

7.2 The purpose of the amendment is to ensure consistent treatment of clients who are determined to be at personal risk.

Date of effect

7.3 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

7.4 Section 252 of the Social Security Act 1991 requires social security recipients to take reasonable action to obtain maintenance. The Secretary may, based on a risk assessment, grant an exemption to a carer from applying for a child support assessment.

7.5 Section 151 of the Assessment Act allows a carer to end an administrative assessment of child support. This provision excludes those carers in receipt of an income tested pension, allowance or benefit. If an assessment is already in place the Registrar cannot end the liability even where the client is at risk.

7.6 The Joint Committee proposed Recommendation 17 to address this problem by providing that the Registrar have a discretion to suspend enforcement action where satisfied that the collection of child support is contributing to risk within the family.

Explanation of the amendments

7.7 The proposed amendment will satisfy the recommendation of the Joint Committee.

7.8 The proposed amendment will allow a carer in receipt of more than the minimum rate of Family Allowance to elect to end their administrative assessment where a risk assessment has been made by the Secretary. [Item 1 - repeal subsection 151(4), insert new subsection 151(4); Item 2 - insert section 151A]

7.9 The proposed amendment also requires a consequential amendment to the Social Security Act 1991 to include adverse decisions of the Secretary in relation to the new subsection 151A(2) of the Assessment Act. [Item 3 - amend paragraph 1239(1)(b)]