(1) Under the proposed changes contained in the `Budget 2000 Child Support Package, is the maximum or cap amount of Child Support Income the highest amount that a paying parent (one having a child support liability) can be assessed upon.

(2) Does the proposal drop the maximum or cap child support income amount from $101 153 to $78 378.

(3) Is Child Support Income the income of the parent used to calculate how much child support is paid.

(4) Is income over $101 153 not taken into account for child support purposes, other than where special circumstances are established.

(5) Under the proposed changes, will income over $78 378 not be taken into account.

(6) Do the proposed changes to the Child Support Income threshold give greatest benefits to high income earners.

(7) Will the proposed changes reduce the (a) amount of child support from $24 552 per annum to $18 301 per annum, or a fall of $119.89 per week, (b) amount of money available to children and (c) standard of living of the payee or carer parent in favour of raising the standard of living for the payer parent.

(8) Under the proposed changes will there be a reduction in child support where there is contact by the payer of at least 30% or more nights per annum.

(9) Will child support percentages be reduced when there is contact of at least 10% of nights per annum.

(10) Is the justification for this change due to the non-carer parent's high costs of having contact with the children.

(11) Does the level of contact between the payer and child reduce the costs of the carer.

(12) Do the standing costs of the carer remain, including accommodation, education and clothing costs.

(13) Will a parent having 10% of nights contact with a child get in excess of a 10% reduction in child support payments if there is one child.

(14) What are the benefits of the change to the child and the payees in receipt of the child support monies.

(1) Yes, however, this may be varied: by agreement of the parents; as a result of an application for departure from the administrative assessment; or by the Court.

(2) Yes, under current arrangements aligning the measure of `average weekly earnings' that sets the upper limit or `cap' on payer taxable income used in their child support assessment with that used for the payee's disregarded income amount will give a `cap' of $78,378 compared to $101,153.

(3) Yes, however, this may be varied: by agreement of the parents; as a result of an application for departure from the administrative assessment; or by the Court.

(4) Yes, however, this may be varied: by agreement of the parents; as a result of an application for departure from the administrative assessment; or by the Court.

(5) Yes, however as is currently the case, this may be varied: by agreement of the parents; as a result of an application for departure from the administrative assessment; or by the Court.

(6) Paying parents with an income over $78,378 (under current arrangements) who pay child support will benefit from the reduction in the upper limit or `cap' on payer income used in their child support assessment.

(7) (a) The amount of any reduction will be dependent on a number of factors, such as the payer's income, the number of children involved, the presence of any new natural or adoptive children in the paying parent's household and the payee's income. The estimated 4,000 payers affected by this measure will pay an average of around $60 per week less in child support. These payers will continue to pay an average of around $15,300 per annum ($295 per week) in child support.

(b) While the measure will reduce the "formula" assessed level of child support for affected parents this does not mean that they cannot provide additional support beyond the assessed amount.

(c) Child support is not designed to support certain standards of living for separated parents. Rather, child support is about both separated parents contributing to the costs of raising their children according to their capacity.

(8) The proposed changes do not alter the current child support arrangements for parents who have the care of their child for 30 per cent of the nights of a year or more. Where a parent shares the care of a their child for 30 per cent of the nights of a year or more, the current reduced child support liabilities will continue to apply.

(9) Under the changes to child support announced in the Budget, where a child support payer exercises contact with their children of between 10 per cent and 29 per cent of the nights of the year their child support formula percentages will be reduced.

For payers with contact between 10 per cent and 19 per cent, the relevant formula percentage that is applied to their income will generally be reduced by two percentage points (for example, from 18 per cent to 16 per cent for one child). Where contact is between 20 per cent and 29 per cent, the formula percentage will generally be reduced by a total of three percentage points (for example, from 18 per cent to 15 per cent for one child).

(10) This change is intended to encourage parents to maintain contact with their children after separation. By recognising that parents incur costs during contact, the proposal will improve incentives for non-resident parents to maintain contact with their children. Contact with both parents is of benefit to the development of the children, and leads to a higher likelihood of payment of child support.

(11) Yes, it reduces costs such as food, entertainment and clothes. However, like the non-resident parent, ongoing infrastructure costs will continue during periods in which children are with the other parent. Those costs to both parents may include the provision of a bedroom for the child(ren), bedroom furniture and bedding, toys and other entertainment items and general household materials used by the child(ren).

(12) Yes, as noted in response to Question 11, as for non-resident parents a resident parent's ongoing infrastructure costs will continue during periods in which children are with the other parent.

(13) This Budget measure aligns with the current provisions that apply to child support payers with the care of their children for more than 30 per cent of the time. For example, under current arrangements, parents with care of between 30 and 39 per cent of the nights of the year have their child support reduced by the same percentage regardless of the exact percentage of care they have within that 30 to 39 percent range. In these cases the child support formula percentage is generally reduced by 4 percentage points.

Under this budget measure, where a child support payer has care of their child for between 20 per cent and 29 per cent of the time their child support formula percentages will generally be reduced by three percentage points. Those with between 10 per cent and 19 per cent of the nights of the year their child support formula percentages will generally be reduced by two percentage points.

Where a parent pays child support for one child, the effect of these arrangements in terms of the percentage of the actual dollar value of these reductions is that those parents with between 10 per cent and 19 per cent care have their liabilities reduced by around 11 per cent. Parents with between 20 per cent and 29 per cent care have their liabilities reduced by around 16 per cent.

(14) By recognising that parents incur costs during contact, the measure will improve incentives for non-resident parents to maintain contact with their children. Contact with both parents is of benefit to the development of the children, and leads to a higher likelihood of payment of child support.