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Child Support Legislation Amendment Bill 2001
Schedule 1 Lower child support percentages for children with whom liable parent has 10% to 30% contact

   

Child Support (Assessment) Act 1989

1  After section 8

Insert:

8AA   Interpretation—moderate and intermediate contact

             (1)  For the purposes of this Act, if a parent of a child:

                     (a)  has care of the child for at least 10%, but less than 20%, of the nights in the 12 months immediately after the start of a child support period; or

                     (b)  the parent and each eligible carer of the child agree that the parent should be taken to have the amount of care of the child mentioned in paragraph (a);

then the parent is taken to have care of the child for 15% of those nights and is referred to in this Act as having moderate contact with the child.

             (2)  For the purposes of this Act, if a parent of a child:

                     (a)  has care of the child for at least 20%, but less than 30%, of the nights in the 12 months immediately after the start of a child support period; or

                     (b)  the parent and each eligible carer of the child agree that the parent should be taken to have the amount of care of the child mentioned in paragraph (a);

then the parent is taken to have care of the child for 25% of those nights and is referred to in this Act as having intermediate contact with the child.

             (3)  This section is subject to section 8A.

2  Paragraph 8A(2)(b)

Omit all the words from and including “out”, substitute:

                            out either:

                              (i)  on the basis of the care (if any) that the person actually has of the child; or

                             (ii)  if subsection (2A) applies to the person—on the basis of the amount of care provided for in the court order or registered parenting plan; and

3  Paragraph 8A(2)(d)

Omit “and (5)”, substitute “(5), (5A), (5B) and (6A)”.

4  After subsection 8A(2)

Insert:

          (2A)  For the purposes of subparagraph (2)(b)(ii), this subsection applies to a person if:

                     (a)  the person is a parent of the child; and

                     (b)  had the court order or registered parenting plan mentioned in that subparagraph not been contravened, the person would be taken to have moderate or intermediate contact with the child under subsection (5A) or (5B).

5  After subsection 8A(5)

Insert:

          (5A)  If a parent has care of the child for at least 10%, but less than 20%, of the nights in the 12 months immediately after the start of the child support period concerned, he or she is taken to have care of the child for 15% of the nights in the child support period, and is referred to in this Act as having moderate contact with the child.

          (5B)  If the parent has care of the child for at least 20%, but less than 30%, of the nights in the 12 months immediately after the start of the child support period concerned, he or she is taken to have care of the child for 25% of the nights in the child support period, and is referred to in this Act as having intermediate contact with the child.

6  After subsection 8A(6)

Insert:

          (6A)  If, after applying this section:

                     (a)  the parent of a child would (apart from this subsection) be taken to have moderate or intermediate contact with the child for a child support period; and

                     (b)  the amount of care of the child that a person or persons would be taken to have for the child support period concerned would not be any of the following:

                              (i)  one person is the sole or principal provider of care;

                             (ii)  two people share care of the child;

                            (iii)  one person has major contact with the child and another person has substantial contact with the child;

then the parent is taken for the purposes of this Act not to have care of the child for any of the days in the child support period.

7  After section 46

Insert:

Subdivision DA Children with whom liable parent has moderate or intermediate contact

46A   Cases to which Subdivision applies

                   This Subdivision applies in relation to a liable parent by whom child support is payable, in respect of a child or children, to a carer entitled to child support (in this Subdivision called the entitled carer ) if:

                     (a)  the entitled carer is the sole or principal provider of ongoing daily care for the child or children; and

                     (b)  the liable parent is not an eligible carer of any child eligible for administrative assessment of whom both the liable parent and the entitled carer are parents; and

                     (c)  the liable parent has moderate or intermediate contact with the child or one or more of the children.

46B   Child support percentage

             (1)  The liable parent’s child support percentage is the percentage ascertained using the following table:

 

Modified table of child support percentages

Item

Number of children for whom the person is a liable parent

Child support percentage

1

0.75

15

2

0.85

16

3

1.5

24

4

1.60 - 1.70

25

5

1.75 - 1.85

26

6

2.25 - 2.40

29

7

2.45 - 2.60

30

8

2.65 - 2.85

31

9

2.90 - 3.20

32

10

3.25 - 3.70

33

11

3.75 - 4.20

34

12

4.25 - 4.70

35

13

4.75 - 5.0 or more

36

             (2)  For the purposes of subsection (1), each child with whom the liable parent has moderate or intermediate contact is attributed a number as follows:

                     (a)  if the parent has moderate contact with the child—0.85;

                     (b)  if the parent has intermediate contact with the child—0.75.

8  Paragraph 48(1)(e)

Repeal the paragraph (including the table), substitute:

                     (e)  the child support percentage of either of the relevant parents is the percentage ascertained using the following table, attributing a number to each child as follows:

                              (i)  for each child for whom a parent is the sole or principal provider of ongoing daily care—the other parent is taken to be liable for 1.00 children, or, if the other parent has moderate or intermediate contact with the child, for 0.85 children (moderate contact) or 0.75 children (intermediate contact);

                             (ii)  for each child with whom a parent has major contact—the other parent is taken to be liable for 0.65 children;

                            (iii)  for each child with whom a parent has substantial contact—the other parent is taken to be liable for 0.35 children;

                            (iv)  for each shared care child—each parent is taken to be liable for 0.5 children:

 

Modified table of child support percentages

Item

Number of children for whom either of the relevant parents is a liable parent in relation to the other

Child support percentage

1

Less than 0.35

Not applicable

2

0.35

8

3

0.50

12

4

0.65 - 0.70

14

5

0.75

15

6

0.85

16

7

1.00

18

8

1.05 - 1.10

19

9

1.15 - 1.20

20

10

1.25 - 1.35

22

11

1.40 - 1.45

23

12

1.50 - 1.55

24

13

1.60 - 1.70

25

14

1.75 - 1.90

26

15

1.95 - 2.05

27

16

2.10 - 2.20

28

17

2.25 - 2.40

29

18

2.45 - 2.60

30

19

2.65 - 2.85

31

20

2.90 - 3.20

32

21

3.25 - 3.70

33

22

3.75 - 4.20

34

23

4.25 - 4.70

35

24

4.75 - 5.0 or more

36

9  Section 51

Omit all the words after “extent”, substitute “that they are applicable, Subdivision C of this Division (which deals with liable parents with high child support income) and Subdivision DA of this Division (which deals with moderate and intermediate contact) are to be applied to each of the relevant parents in turn, but with the modification made by section 52.”.

10  Paragraph 54(1)(b) (definition of number of children in carer’s care )

Omit all the words after “child support” (first occurring), substitute:

                            with a number attributed to each child as follows:

                              (i)  for each child for whom the carer entitled to child support is the sole or principal provider of ongoing daily care—the liable parent is taken to be liable for 1.00 child;

                             (ii)  for each child with whom the carer entitled to child support has major contact—the liable parent is taken to be liable for 0.65 children;

                            (iii)  for each child with whom the carer entitled to child support has substantial contact—the liable parent is taken to be liable for 0.35 children;

                            (iv)  for each shared care child of the liable parent and the carer entitled to child support—the liable parent is taken to be liable for 0.5 children;

                            multiplied by 0.85 if the liable parent has moderate contact with the child, or by 0.75 if the liable parent has intermediate contact with the child;

11  Paragraph 54(1)(b) (definition of total number of children )

Repeal the definition, substitute:

total number of children means the sum of the number of children in carer’s care for each carer entitled to child support in relation to whom the liable parent is a liable parent; and

12  Paragraph 54(1)(c) (table, including the note at the end of the table)

Repeal the table and note, substitute:

 

Modified table of child support percentages

Item

Total number of children

Child support percentage

1

Less than 0.25

Not applicable

2

0.25 - 0.29

3

3

0.30 - 0.34

5

4

0.35 - 0.39

8

5

0.40 - 0.44

10

6

0.45 - 0.49

11

7

0.50 - 0.54

12

8

0.55 - 0.60

13

9

0.61 - 0.70

14

10

0.71 - 0.80

15

11

0.81 - 0.89

16

12

0.90 - 0.99

17

13

1.00 - 1.04

18

14

1.05 - 1.14

19

15

1.15 - 1.20

20

16

1.21 - 1.24

21

17

1.25 - 1.35

22

18

1.36 - 1.45

23

19

1.46 - 1.55

24

20

1.56 - 1.70

25

21

1.71 - 1.90

26

22

1.91 - 2.05

27

23

2.06 - 2.20

28

24

2.21 - 2.40

29

25

2.41 - 2.60

30

26

2.61 - 2.85

31

27

2.86 - 3.20

32

28

3.21 - 3.70

33

29

3.71 - 4.20

34

30

4.21 - 4.70

35

31

4.71 - 5.00 or more

36

13  Subsection 54(2)

Omit “, rounding the second decimal place to either 0 or 5”.

14  At the end of subsection 54(2) (before the note)

Add:

Example 3: application of basic formula where liable parent has a liability to 2 carers and contact with some of the children

Facts :       The assessment is being made for a child support period starting on 1 September 2001.

                   Michael has 3 children, 2 with Laura and 1 with Susan. Michael is liable to Laura for 2 children, but shares the daily care of his 14 year old son with her substantially equally, and care for his 12 year old daughter for 40 nights during the first 12 months of the child support period. Michael’s care of his daughter constitutes moderate contact.

                   Susan has sole daily care of her son.

                   Michael’s taxable income for the 2000-2001 year of income (which is the last relevant year of income for the child support period) is $41,230. Laura’s taxable income for that year of income was $29,500 but Susan’s taxable income for that year of income is so low that Subdivision D of Division 1 does not affect the assessment of child support payable to Susan.

                   Assume that the relevant rates under the Social Security Act 1991 on 1 January 2001 are such that Michael’s exempted income amount worked out under section 39 for the period is $11,842 and Laura’s exempted income amount worked out under that section for the period is $24,909.

Step 1.       Calculate the child support percentage in relation to each carer.

                   The total number of children is calculated as follows: Laura has her son (0.5 of a child) and her daughter, in relation to whom Michael exercises moderate contact:

             

                   Susan has 1 child. The total number of children is 2.35:

             

                   The child support percentage for a total of 2.35 children is 29%.

                   In relation to Laura, Michael’s child support percentage is:

                  

                   Susan has 1 child. Therefore, in relation to Susan, Michael’s child support percentage is:

                  

Step 2.      Do an assessment for Michael to pay Susan using the child support percentage calculated in Step 1.

                   For Michael to pay Susan:

Michael’s taxable income for 2000-2001 year of income:               $41,230

Michael’s child support income amount:                              $41,230

              Less exempted income amount:                          $11,842

Michael’s adjusted income amount:                                     $29,388

                   Multiply by child support percentage:                 12.34%

Michael’s child support annual rate for the child support period starting on 1 September 2001:                                                     $3,626

Step 3.      Do assessment for Michael and Laura as if they were liable to each other (using the Division 1 basic formula with modification) (section 48).

                   For Michael to pay Laura:

Michael’s taxable income for 2000-2001 year of income:               $41,230

Michael’s child support income amount:                              $41,230

                   Less exempted income amount:                          $11,842

Michael’s adjusted income amount:                                     $29,388

                   Multiply by child support percentage:                 16.66%

Michael’s child support annual rate for the child support period starting on 1 September 2001:                                                     $4,896

                   For Laura to pay Michael:

Laura’s taxable income for 2000-2001 year of income:   $29,500

Laura’s child support income amount:                                 $29, 500

                   Less exempted income amount:                          $24,909

Laura’s adjusted income amount:                                         $4,591

                   Multiply by child support percentage:                 12%

Laura’s child support annual rate for the child support period starting on 1 September 2000:                                                         $551

Step 4.      Reduce the annual rates payable by Michael and Laura (section 49).

              Michael owes Laura $4,896 a year. Laura owes Michael $551 a year. Therefore the annual rate payable by Michael to Laura is $ 4,3 45:

             

                   The annual rate payable by Laura to Michael is reduced to 0.

15  Subsection 54A(1) (note 2)

Repeal the note, substitute:

Note 2:       If the carer is the sole or principal provider of care for the child or children, Division 1 or Subdivision DA of Division 2 will apply, rather than this Subdivision.

16  Paragraph 54B(1)(f)

Omit all the words from and including “percentage” (first occurring), substitute:

                            percentage of the liable parent is the percentage ascertained using the following table, with a number attributed to each child as follows:

                              (i)  for each child for whom the carer is the sole or principal provider of ongoing daily care—the liable parent is taken to be liable for 1.00 child;

                             (ii)  for each child with whom the carer has major contact—the liable parent is taken to be liable for 0.65 children;

                            (iii)  for each child with whom the carer has substantial contact—the liable parent is taken to be liable for 0.35 children;

                            (iv)  for each shared care child of the liable parent and the carer—the liable parent is taken to be liable for 0.5 children.

17  Paragraph 74A(b)

Repeal the paragraph, substitute:

                     (b)  the Registrar is notified, or otherwise becomes aware, that:

                              (i)  the basis on which a person is an eligible carer of the child has changed from one of the categories set out in the definition of eligible carer (in section 5) to another of those categories; or

                             (ii)  a liable parent of the child commences or ceases to have moderate or intermediate contact with the child; and