Changes to the Child Support Scheme are promising to better balance the interests of both parents while endeav­ouring to work in the best interests of the child. Since the introduction of the Child Support Scheme in 1988, the circumstances of many Australian families have changed dram­atically. A shift in community values has seen greater importance put on the involvement of both parents in the life of the child, even after separation.

The federal government hopes that its changes to the Child Support Scheme will reduce conflicts between parents, encourage shared parenting and ensure child support is paid on time and in full.
It is a measured approach, which is being implemented in three stages, with the first having been in effect since 1 July 2006 . The second stage begins 1 January 2007 and the third and final stage starts
1 July 2008 .

Since 1 July 2006 :

• the minimum payment has been increased;
• greater capacity of the Child Support Agency (CSA) to ensure payments are made in full and on time;
• non-resident parents on income support have access to higher Newstart and related payments;
• reduction in the maximum amount of child support payable by high income earners;
• arrangements for assessing the capacity of parents to earn income has changed;
• a greater proportion of support payments can be spent directly on the children; and
• Family Relationship Centres, the Family Relationship Advise Line and other counselling services expanded.

From 1 January 2007 :

• CSA decisions can be reviewed by the Social Security Appeals Tribunal;
• the relationship between the courts and the Child Support Scheme will be strengthened; and
• more time given to working out parenting arrangements before Family Tax Benefit is effected.

Stage three of the changes will come into effect on 1 July 2008 and will introduce a new formula for calculating payments. This new formula assumes that older children cost more than younger children. It also reduces the amount payable by non-resident parents who have overnight contact with their children. In addition, the stage three changes will:

• ensure a minimum payment is made for each child support family;
• ensure that dependent step-children are taken into account when calculating a parent’s child support liability for their first family;
• take into account income from second jobs and overtime that assists with re-estab­­lish­­ment for the first three years after separation;
• simplify the process for applying for a ‘change of assessment’;
• improve the arrangements for parents who wish to make their own agreements; and
• make the child support rules easier for parents who get back together.

Whether the changes actually do deliver a fairer system with fewer disputes between separated parents, we will have to wait until 2008, once all changes have been implemented, to see.

More information

From the LIV Bookshop
Family Law in Australia (6th ed), by Monahan & Young, $125

Useful web links
For details of the child support reforms visit www.facsia.gov.au/internet/facsinternet.nsf/family/childsupport.htm and www.familyassist.gov.au.