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New child support formula proposed


By David Sibley

A Ministerial Taskforce has recommended sweeping changes to child-support arrangements.

The Minister for Family and Community Services, Kay Patterson, said the 30 recommendations from the Ministerial Taskforce on Child Support, made public on June 14, would receive “careful consideration”.

The report, In the Best Interests of Children, by the Taskforce on Child Support, set up in August last year by the Government, has recommended a new child-support formula, based on the costs of children calculated from the combined income of parents.

The proposed formula would see the costs of children distributed between the mother and father in accordance with their respective shares of the combined income and levels of contact.

“This gives practical expression to the first objective of the Scheme, that parents share in the cost of supporting their children according to their capacity,” the report says.

The taskforce found that the current formula for child support was no longer appropriate because:

  • fixed percentages of taxable income in the current scheme were well in excess of levels of expenditure on children in intact families;
  • using set percentages of income, irrespective of age, was not sensitive to the difference in costs of children as they grew older; and
  • there was a need to reflect two incomes, given a majority of intact families depended on two incomes. The new formula recommended by the taskforce would take into account Government contributions towards the costs of children, child care costs, regular contact and shared care.

The new formula would express the costs of children in a table based upon the parents’ combined Child Support Income in two age bands, 0-12 and 13-17, to reflect the fact that expenditure on teenagers was generally much higher than for young children.

It also expresses the costs for one, two and three or more children, instead of up-to-five children as at present.
A key recommendations is to increase the current self-support amount ($13,462 in 2005) to one-third of male total average weekly earnings ($16,883 in the 2005-2006 financial year.

To ensure parents meet their obligations, the taskforce recommended the required child support payment should be $20 a week for each child for those who are not on income support or who report taxable incomes below the maximum parenting payment.

If a parent is on income support, then the formula would be suspended and a minimum payment of $5 a week would apply.

The report says the proposed new formula could not and would not address all the grievances people have had about the Child Support Scheme.

“Sometimes grievances about child support reflect concerns about other aspects of family law, such as resentment about the difficulties in enforcing contact orders, or disagreement with the ‘no-fault’ basis of divorce law,” it says.

“The Child Support Scheme cannot address these issues – although its design should minimise unnecessary conflict and should be responsive to the strong emotions at play when separated parents are required to work together to provide continuing support for this children.”

For further information, go to http://www.facs.gov.au/internet/facsinternet.nsf/family/childsupportreport.htm

 

 

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