(1) (a) How does the Child Support Agency (CSA) determine the cost of raising children; and (b) if the determination is based on research completed by the CSA, or commissioned by or on behalf of the CSA, when and where was that research conducted.

(2) Has the CSA made any effort to obtain more relevant and up to date information on the cost of raising children.

(1) (a) The CSA uses the formula contained in the Child Support (Assessment) Act 1989 to assess the amount parents pay to support their children following separation.

The formula varies depending on the number of children and is based on the proportion of income that an intact family spends on their children. It enables children to share in the income of both parents. Where there are special circumstances either parent can apply to the CSA to depart from the formula assessment.

(b) The amount parents spend on their children is a function of choice, the age of the child and the amount of income available, therefore, there is not one cost of raising children. The Department of Family and Community Services commissioned research in this broad area. In 1998, the Social Policy Research Centre (SPRC) conducted research relating to what parents need to spend to provide particular standards of living for their children. In 1999, the National Centre for Social and Economic Modelling estimated the actual average spending of Australian couples on children, based on ABS survey data. Estimates were provided for households with income ranging from around $20 000 to $150 000 a year.

(2) No additional research is planned.