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Child Support Legislation Amendment Bill 2001
Schedule 3 Income earned for the benefit of resident children

   

Child Support (Assessment) Act 1989

1  After subsection 98S(3)

Insert:

          (3A)  A determination under this Part varying the child support income amount of a liable parent or a carer entitled to child support must not reduce the child support income amount worked out under Part 5 by more than 30%, to the extent that the reduction is attributable to a ground mentioned in subparagraph 117(2)(c)(iii) or (iv).

2  Paragraph 117(2)(c)

Omit “because of”.

3  Subparagraph 117(2)(c)(i)

Before “the income”, insert “because of”.

4  Subparagraph 117(2)(c)(ii)

Before “any payments”, insert “because of”.

5  At the end of paragraph 117(2)(c)

Add:

                     ; or (iii)  because an amount (the additional amount ) of a liable parent’s child support income amount was earned, derived or received by the liable parent for the benefit of a resident child or resident children of the liable parent; or

                            (iv)  because an amount (the additional amount ) of an entitled carer’s child support income amount was earned, derived or received by the entitled carer for the benefit of a resident child or resident children of the entitled carer.

Note:          Section 117A sets out provisions relating to income earned for the benefit of resident children.

6  After section 117

Insert:

117A   Provisions relating to income earned for the benefit of resident children

             (1)  A child is a resident child of a liable parent for the purposes of subparagraph 117(2)(c)(iii) if, and only if:

                     (a)  the child normally lives with the liable parent; and

                     (b)  the child is aged under 18; and

                     (c)  the child is not a member of a couple; and

                     (d)  the liable parent:

                              (i)  is a parent of the child; or

                             (ii)  is, or was, a member of a couple of which the other member is, or was, a parent of the child; and

                     (e)  the child is not a child of whom both the liable parent and the entitled carer are the parents.

             (2)  A child is a resident child of an entitled carer for the purposes of subparagraph 117(2)(c)(iv) if, and only if:

                     (a)  the child normally lives with the entitled carer; and

                     (b)  the child is aged under 18; and

                     (c)  the child is not a member of a couple; and

                     (d)  the entitled carer:

                              (i)  is a parent of the child; or

                             (ii)  is, or was, a member of a couple of which the other member is, or was, a parent of the child; and

                     (e)  the child is not a child of whom both the entitled carer and the liable parent are the parents.

             (3)  For the purposes of subparagraphs 117(2)(c)(iii) and (iv), an amount is taken not to be an additional amount in relation to a person in the following circumstances:

                     (a)  the amount is earned, derived or received in accordance with a pattern of earnings, derivation or receipt that was established:

                              (i)  before the resident child became a resident child of the liable parent or the entitled carer; or

                             (ii)  if the child was a resident child of the liable parent or the entitled carer immediately after the child was born—before the liable parent or the entitled carer could reasonably be expected to have been aware of the pregnancy that resulted in the birth of the child;

                     (b)  the amount is earned, derived or received other than in accordance with such a pattern, but the alterations to the pattern are of a kind that it is reasonable to expect would have occurred in the ordinary course of events.

7  After subsection 118(2)

Insert:

          (2A)  An order under this section varying the child support income amount of a liable parent or a carer entitled to child support must not reduce the child support income amount worked out under Part 5 by more than 30%, to the extent that the reduction is attributable to a ground mentioned in subparagraph 117(2)(c)(iii) or (iv).