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2. Terms of Reference
2. Terms of Reference The Terms of Reference provide that the Taskforce, supported by the Reference Group, will: Provide advice around the short-term recommendations of the Committee along the lines of those set out in the Report (Recommendation 25) that relate to: increasing the minimum child support liability; …
3. Approach of the Taskforce
3. Approach of the Taskforce In order to meet the Terms of Reference, the Taskforce: analysed the submissions on child support made to the House of Representatives Committee on Family and Community Affairs in 2003; analysed issues raised in Ministerial correspondence and unsolicited submissions to the Taskforce; …
4. A new child support formula for Australia
4. A new child support formula for Australia A formula-based approach to assessing child support is administratively straightforward, transparent and efficient by comparison with more discretionary alternatives, such as relying on the courts. It provides the mechanism for the costs of children to be distributed …
5. Assessing the costs of children
5. Assessing the costs of children There is no ‘fixed cost’ of children. The costs of children vary in accordance with the level of income of the parents. Estimates of the cost of raising children are therefore based upon evidence about patterns of expenditure on children, or the amount of money that is needed to …
6. Taking account of regular contact and shared care
6. Taking account of regular contact and shared care 6.1 Thresholds for recognition in the formula The current formula does not take adequate account of the costs of contact. A parent has the same child support liability whether he or she has no contact with the children or has the children to stay overnight for 29 …
7. Ensuring parents meet their obligations to their children
7. Ensuring parents meet their obligations to their children 7.1 Minimum payments More than 40 per cent of all payers in the Child Support Scheme are paying $260 per year ($5 per week) or less. Only about half of these are on Newstart, Disability Support Pension or other income support. It is likely that the reported …
8. Helping parents to agree
8. Helping parents to agree 8.1 The role of Family Relationship Centres The new Family Relationship Centres can play an important role in helping separated parents to understand the Child Support Scheme and discuss issues about child support obligations. Group information sessions should draw attention to the …
9. Other issues
9. Other issues 9.1 Capacity to earn Determinations that a parent’s capacity to earn is higher than his or her actual income are amongst the most contentious of all Child Support Agency decisions. Either parent could, in principle, be caught by this provision, but in practice non-resident parents, mainly fathers, are …
10. Expected outcomes from the reforms
10. Expected outcomes from the reforms Any changes at all to the Child Support Scheme will necessarily mean changes to the amount of money that some payees receive in child support and that payers must pay. In some cases, the child support received by payees will increase as a result of these reforms. Recommendations …
Recommendations
Recommendations Terms used in these recommendations Child Support Income – a parent’s adjusted taxable income less their self-support amount FTB – Family Tax Benefit MTAWE – male total average weekly earnings, as reported by the Australian Bureau of Statistics Non-resident parent – the parent who cares for the child …