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taxable income

My partner is on workers comp and the insurance company advised his wage would be dropping by 20% in may we informed child support and they did an estimate, however the company he works for kept paying the same amount. we have now asked that his last years taxable income be used as his wage didnt change and they refuse and are using an estimate for this year which is more $4000 more than last years. can they do this? they refuse to use last years return advice
ggal,
      assuming that you put in an income estimate, then the legislation has been changed (since 1st July 2011) to very much allow the CSA to reject an income estimate under any circumstance. My guess is that they will now be doing this as a matter of course in order to yet further collect or transfer as much as they can in contravention of the very object of the act. I would suggest that you object to the notice that must be given in writing to yourselves and then take the matter up with SSAT. I suspect that they will simply find the same.

Secretary_SPCA, were you aware of these changes (in this case they have added sections 63AA, 63AB,  .. 63AF)?

63AA-63AF are :

Child Support Assessment Act 1989 Part 5 Division 7 - Assessments and estimates of adjusted taxable income (Sections 63AA-63AF) said
63AA  Registrar may refuse to accept an income election

             (1)  If:

                     (a)  a parent makes an income election to which subsection 60(2) applies; and

                     (b)  the Registrar is satisfied that the amount worked out under that subsection is less than the amount that the Registrar considers is likely to be the parents actual adjusted taxable income for the year of income to which the income election relates;

the Registrar may refuse to accept the income election.

             (2)  The Registrar may refuse to accept a parents income election to which subsection 60(3) applies if the Registrar is satisfied that:

                     (a)  the partial year income amount for the income election is less than the amount that the Registrar considers is likely to be the parents actual adjusted taxable income for the remaining period in relation to the income election; or

                     (b)  the total of the income component amounts estimated by the parent under paragraph 60(3)(b) for the period referred to in that paragraph is more than the amount that the Registrar considers is likely to be the total of the actual income component amounts for the parent for that period.

             (3)  If:

                     (a)  a parent makes an election under subsection 62A(1); and

                     (b)  the Registrar is satisfied that the partial year income amount for the income election is less than the amount that the Registrar considers is likely to be the parents actual adjusted taxable income for the remaining period in relation to the income election;

the Registrar may refuse to accept the income election.

             (4)  In making the decision as to whether to refuse to accept the income election, the Registrar:

                     (a)  may act on the basis of information that the Registrar has received or obtained as to the financial circumstances of the parent; and

                     (b)  may, but is not required to, conduct an inquiry into the matter.

             (5)  Except for the purposes of Parts VII, VIIA and VIII of the Registration and Collection Act (dealing with objections and appeals), if the Registrar refuses to accept the income election, the election is taken never to have been made.

63AB  Notice to be given if Registrar refuses to accept an income election

             (1)  If the Registrar refuses under section 63AA to accept an income election, the Registrar must give written notice of the decision to the parent who sought to make the income election.

             (2)  The notice must include, or be accompanied by, a statement to the effect:

                     (a)  that the parent may, subject to the Registration and Collection Act, object to the particulars of the assessment in relation to which the parent sought to make the income election; and

                     (b)  that if the parent is aggrieved by the decision on the objection, he or she may, subject to that Act, apply to the SSAT for review of the decision.

             (3)  A contravention of subsection (2) in relation to a decision does not affect the validity of the decision.

Subdivision DYear to date income amounts

63AC  Parent may elect a new year to date income amount

             (1)  If:

                     (a)  either of the following apply:

                              (i)  a parent has made an election relating to a year of income under subsection 60(1) to which subsection 60(3) applies;

                             (ii)  a parent has made an election in relation to a year of income under this subsection; and

                     (b)  the parent becomes satisfied that the following amount (the year to date income amount) is incorrect:

                              (i)  if subparagraph (a)(i) appliesthe total of the income component amounts estimated by the parent under paragraph 60(3)(b);

                             (ii)  if subparagraph (a)(ii) appliesthe amount specified under paragraph (3)(a) of this section in the notice of the election; and

                     ©  sections 64, 64A, 64AC and 64AD do not apply in relation to the parent;

the parent may elect another amount (the new amount) to replace the year to date income amount for the year of income.

             (2)  The parent makes the election under subsection (1) by giving notice of it to the Registrar in the manner specified by the Registrar.

             (3)  The notice must specify:

                     (a)  the new amount; and

                     (b)  the parents estimate of each income component amount for the period referred to in paragraph 60(3)(b).

63AD  Registrar may refuse to accept an election of a new year to date income amount

Refusal to accept election

             (1)  The Registrar may refuse to accept an election made by a parent under subsection 63AC(1) if the Registrar is satisfied that the amount specified under paragraph 63AC(3)(a) in the notice of the election is more than the amount that the Registrar considers is likely to be the total of the actual income component amounts for the parent for the period referred to in paragraph 60(3)(b).

             (2)  In making the decision as to whether to refuse to accept the election, the Registrar:

                     (a)  may act on the basis of information that the Registrar has received or obtained as to the financial circumstances of the parent; and

                     (b)  may, but is not required to, conduct an inquiry into the matter.

             (3)  Except for the purposes of Parts VII, VIIA and VIII of the Registration and Collection Act (dealing with objections and appeals), if the Registrar refuses to accept the election, the election is taken never to have been made.

Notice of refusal

             (4)  If the Registrar refuses under subsection (1) to accept a parents election made under subsection 63AC(1), the Registrar must give written notice of the decision to the parent.

             (5)  The notice must include, or be accompanied by, a statement to the effect:

                     (a)  that the parent may, subject to the Registration and Collection Act, object to the decision (the original decision); and

                     (b)  that if the parent is aggrieved by a later decision on the objection to the original decision, he or she may, subject to that Act, apply to the SSAT for review of the later decision.

             (6)  A contravention of subsection (5) in relation to a decision does not affect the validity of the decision.

63AE  Registrar may determine a new year to date income amount

             (1)  If:

                     (a)  any of the following apply:

                              (i)  a parent has made an election relating to a year of income under subsection 60(1) to which subsection 60(3) applies;

                             (ii)  a parent has made an election in relation to a year of income under subsection 63AC(1);

                            (iii)  the Registrar has made a determination under this subsection in relation to a parent and a year of income; and

                     (b)  the Registrar becomes satisfied that the following amount (the year to date income amount) is incorrect:

                              (i)  if subparagraph (a)(i) appliesthe total of the income component amounts estimated by the parent under paragraph 60(3)(b);

                             (ii)  if subparagraph (a)(ii) appliesthe amount specified under paragraph 63AC(3)(a) in the notice of the election;

                            (iii)  is subparagraph (a)(iii) appliesthe amount specified in the determination;

the Registrar may determine another amount to replace the year to date income amount for the year of income.

             (2)  If the Registrar makes a determination in relation to a parent under subsection (1), the Registrar must give written notice of the determination to the parent.

             (3)  The notice must include, or be accompanied by, a statement to the effect:

                     (a)  that the parent may, subject to the Registration and Collection Act, object to the determination; and

                     (b)  that if the parent is aggrieved by the decision on the objection, he or she may, subject to that Act, apply to the SSAT for review of the decision.

             (4)  A contravention of subsection (3) in relation to a determination does not affect the validity of the determination.

63AF  Parents applicable YTD income amount

             (1)  If:

                     (a)  a parent has made an election relating to a year of income under subsection 60(1) to which subsection 60(3) applies; and

                     (b)  subsection (2) of this section does not apply in relation to the parent;

the total of the income component amounts estimated by the parent under paragraph 60(3)(b) is the parents applicable YTD income amount for that year.

             (2)  If either or both of the following have occurred:

                     (a)  a parent has made one or more elections in relation to a year of income under subsection 63AC(1);

                     (b)  the Registrar has made one or more determinations under subsection 63AE(1) in relation to a parent and a year of income;

the parents applicable YTD income amount for the year of income is:

                     ©  the amount specified under paragraph 63AC(3)(a) in the notice of such an election, if that election was the last of those elections or determinations to be made; or

                     (d)  the amount determined in such a determination, if that determination was the last of those elections or determinations to be made.

We put in an estimate before he did his tax and now we want them to go by his taxable income for 2010 -2011 as we were under the impression this actually started a new assessment but they refuse as they said once an estimate is put in they have to go by that and we rang to change it as they were using the lower one even after his tax was done and we didnt want a bill. and they have upped it from what his income last year was. see his employer didnt drop his wage even though the workers comp insurer did thats where we got stuffed up. after deductions last year he earnt $36,000 and that was with out his wage being dropped. and now they are basing it on this year at $40,000 obvioulsy before any deductions The estimate we had for last year was $38500 so does this mean that we will have a credit for that year or will that be conveniently overlooked?

we dont want them to use an estimate we want them to use his taxable income.
editor said
This post should be read in conjunction with the next post to get an understanding of what has gone on

Last edit: by Secretary SPCA

We put the estimate in in May we thought they would then use his taxable income for the new year and if his wage had dropped we would do a new estimate. they didnt they have used our estimate for the new year and as his wage hasnt dropped we advised but now they refuse to use his tax advice for the new term meaning he pays more than he would if they used his taxable income from 2010-2011 they calim they are not allowed to do that after an estimate has been put in.
MikeT I wasn't aware of a new Bill. I will give you a call to discuss.

Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 
Secretary_SPCA (or should that now be The_Secretary_SPCA :)),
                         sheesh there's a whole host of changes (note I've only had a glance as such, so comments likely need consideration/review). Furthermore I could easily have missed something). Subsequently I have not been able to actually find anything that specifies the amendments to Income estimates (63AA-63AF). As such I believe that there could well be other changes to the acts. I'm not sure how to find them (I might try some software that reports on changes). I've been using ComLaw. Anyway here's the changes that I can find that are documented as changes (again note that it is clear that this is not a fully comprehensive list of the changes):

1) Statute Law Revision Act 2011 - C2011A00005 - No. 5, 2011 (probably nothing of great importance).

Schedule 6 - References to specific Departments - Child Support (Assessment) Act 1989 said

14  Subsection 150(1)

Insert:

Veterans Affairs Department means the Department administered by the Minister administering the Veterans Entitlements Act 1986.

15  Paragraph 150(3)(b)

Omit Department of Veterans Affairs, substitute Veterans Affairs Department.



Schedule 6 - References to specific Departments - Child Support (Registration and Collection) Act 1988 said
16  Subsection 4(1)

Insert:

Immigration Department means the Department administered by the Minister administering the Migration Act 1958.

17  Subsection 4(1)

Insert:

Veterans Affairs Department means the Department administered by the Minister administering the Veterans Entitlements Act 1986.

18  Paragraph 16(3)(b)

Omit Department of Veterans Affairs, substitute Veterans Affairs Department.

19  Subsection 72G(4)

Omit Department of Immigration and Multicultural Affairs, substitute Immigration Department.

Schedule 7 - References to Secretaries to Departments - Child Support (Assessment) Act 1989 said
33  Paragraphs 150(3)(b) and (d)

Omit Secretary to, substitute Secretary of.


Schedule 7 - Child Support (Registration and Collection) Act 1988 said
34  Subsection 4(1) (definition of Secretary)

Omit Secretary to, substitute Secretary of.

35  Paragraphs 16(3)(b) and (d)

Omit Secretary to, substitute Secretary of.


Schedule 8 - References to Departments administering Acts - Child Support (Registration and Collection) Act 1988 said
1  Subparagraph 94(1)(a)(iv)

Omit Department administering, substitute Department administered by the Minister administering.


2) Human Services Legislation Amendment Act 2011 (uhhm is this (as highlighted in red below) basically adding 16AB to say the CSA are outside of the privacy act?) - C2011A00032 - No. 32, 2011
Schedule 3Amendment of the Child Support (Registration and Collection) Act 1988 said
  

1  Subsection 4(1) (definition of CEO)

Repeal the definition.

2  Subsection 4(1)

Insert:

Chief Executive Centrelink has the same meaning as in the Human Services (Centrelink) Act 1997.

3  Subsection 4(1)

Insert:

Chief Executive Medicare has the same meaning as in the Human Services (Medicare) Act 1973.

4  Subsection 4(1) (definition of employee)

Repeal the definition, substitute:

employee, when used in Part IV, VI or IX, means a person who receives, or is entitled to receive, work and income support related withholding payments.

5  Subsection 4(1)

Insert:

medicare program has the same meaning as in the Human Services (Medicare) Act 1973.

6  Subsection 4(1) (definition of service arrangements)

Repeal the definition.

7  Subsection 4(1) (definition of Services Delivery Agency)

Repeal the definition.

8  Subsection 10(2)

Repeal the subsection, substitute:

             (2)  The Child Support Registrar is to be a person who is:

                     (a)  an SES employee in the Department; and

                     (b)  specified in a written instrument made by the Secretary.

             (3)  A person must not be specified in an instrument under paragraph (2)(b) if the person is, or is acting as:

                     (a)  the Chief Executive Centrelink; or

                     (b)  the Chief Executive Medicare.

             (4)  An instrument under paragraph (2)(b) is not a legislative instrument.

9  After section 10

Insert:

10A  Acting Child Support Registrar

             (1)  The Secretary may appoint an SES employee in the Department to act as the Child Support Registrar:

                     (a)  during a vacancy in the position of Child Support Registrar (whether or not an appointment has previously been made to the position); or

                     (b)  during any period, or during all periods, when the Child Support Registrar:

                              (i)  is absent from duty or from Australia; or

                             (ii)  is, for any reason, unable to perform the duties of the position.

             (2)  A person must not be appointed under subsection (1) if the person is, or is acting as:

                     (a)  the Chief Executive Centrelink; or

                     (b)  the Chief Executive Medicare.

             (3)  Anything done by or in relation to a person purporting to act under an appointment under subsection (1) is not invalid merely because:

                     (a)  the occasion for the appointment had not arisen; or

                     (b)  there was a defect or irregularity in connection with the appointment; or

                     ©  the appointment had ceased to have effect; or

                     (d)  the occasion to act had not arisen or had ceased.

Note:          See sections 20 and 33A of the Acts Interpretation Act 1901.

10  Subsection 15(1A)

Repeal the subsection, substitute:

          (1A)  The Registrar may, in writing, delegate all or any of his or her powers or functions under this Act to the Chief Executive Centrelink.

10A  After subsection 16(2A)

Insert:

    (2AAA)  Subsection (2) does not apply to the making of a record of information with the express or implied authorisation of the person to whom the information relates.

11  Paragraphs 16(3)(ba) and (bb)

Repeal the paragraphs, substitute:

                   (ba)  to:

                              (i)  the Chief Executive Centrelink; or

                             (ii)  a Departmental employee (within the meaning of the Human Services (Centrelink) Act 1997);

                            for the purpose of the administration of this Act or of any other law of the Commonwealth relating to pensions, allowances or benefits; or

                   (bb)  to:

                              (i)  the Chief Executive Medicare; or

                             (ii)  a Departmental employee (within the meaning of the Human Services (Medicare) Act 1973);

                            for the purpose of the performance of functions, or the exercise of powers, in connection with a medicare program; or

12  Paragraph 16(4C)(d)

Omit Child Support Agency, substitute Registrar or an officer or employee of the Department.

13  Subsection 16AA(3) (paragraphs (a) and (b) of the definition of relevant information)

Before Child Support Agency, insert former.

14  After section 16AA

Insert:

16AB  Multiple secrecy provisions

Scope

             (1)  This section applies to particular information if:

                     (a)  the information is subject to a regulatory regime under a designated program Act (the first program Act); and

                     (b)  the information is also subject to a regulatory regime under another designated program Act (the second program Act).

For the purposes of this subsection, in determining whether particular information is subject to a regulatory regime under a designated program Act, disregard whether the information is subject to a regulatory regime under any other designated program Act.

Disclosure or use of information etc.

             (2)  If:

                     (a)  the Secretary, the Registrar or an officer or employee of the Department:

                              (i)  discloses the information; or

                             (ii)  uses the information; or

                            (iii)  makes a record of the information; and

                     (b)  the Secretary, the Registrar or the officer or employee of the Department, as the case may be, does so without contravening the first program Act;

the disclosure, use, or making of the record, as the case may be, does not contravene the second program Act.


Definitions

             (3)  In this section:

designated program Act means:

                     (a)  this Act; or

                     (b)  the A New Tax System (Family Assistance) (Administration) Act 1999; or

                     ©  the Aged Care Act 1997; or

                     (d)  the Child Support (Assessment) Act 1989; or

                     (e)  the Dental Benefits Act 2008; or

                      (f)  the Disability Services Act 1986; or

                     (g)  the Health Insurance Act 1973; or

                     (h)  the Medical Indemnity Act 2002; or

                      (i)  the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010; or

                      (j)  the National Health Act 1953; or

                     (k)  the Paid Parental Leave Act 2010; or

                      (l)  the Private Health Insurance Act 2007; or

                    (m)  the Social Security (Administration) Act 1999; or

                     (n)  the Student Assistance Act 1973; or

                     (o)  an Act specified in a legislative instrument made by the Minister for the purposes of this paragraph.

disclose means disclose, divulge or communicate.

15  Subparagraphs 94(1)(a)(iii) and (iv)

Repeal the subparagraphs.

16  Subsection 95(1)

Repeal the subsection, substitute:

Applications must be forwarded to SSAT

             (1)  If an application for review under this Part is sent or delivered to an office of the Department, the Secretary must send the application to the SSAT Principal Member:

                     (a)  as soon as practicable; and

                     (b)  in any casenot later than 7 days after the application is received at the office of the Department.

17  Paragraph 95(2)(b)

Omit a Secretary or the CEO, substitute the Secretary.

3) Acts Interpretation Amendment Act 2011 (cosmetic changes I think) - C2011A00046 - No. 46, 2011

Schedule 2 - Consequential amendments - Child Support (Assessment) Act 1989 said
325  Subsection 5(1) (paragraph © of the definition of member of a couple)

Omit section 22B, substitute section 2E.

326  Subsection 5(1) (definition of named month)

Repeal the definition.

327  Subsection 7A(1) (note)

Omit Subsections (6), (7), (8) and (9), substitute Subsections (5) to (8).

328  Subsection 7A(1) (note)

Omit or definitive.

329  Paragraph 7A(3)(b)

Omit named month, substitute calendar month.

330  Subsection 34A(2)

Omit named month (wherever occurring), substitute calendar month.

331  Paragraphs 34A(3)(b) and ©

Omit named month, substitute calendar month.

332  Section 78

Omit month (wherever occurring), substitute calendar month.

333  Subsection 163A(5) (paragraph (b) of the definition of de facto relationship)

Omit section 22B, substitute section 2E.



Schedule 2 - Consequential amendments - Child Support (Registration and Collection) Act 1988 said
334  Subsection 4(1) (definition of closing day)

Omit month (wherever occurring), substitute calendar month.

335  Subsection 4(1) (definition of month)

Repeal the definition.

336  Subsection 26A(3) (example)

Omit month, substitute calendar month or a month.

337  Subsection 26B(4) (example 2)

Omit calendar.

338  Subsection 44(10)

Omit one month, substitute one calendar month or one month.

339  Section 47

Omit month (wherever occurring), substitute calendar month.

340  Paragraphs 53(a), (b) and ©

Omit month, substitute calendar month.

341  Subsection 65A(3) (example 2)

Omit calendar.

342  Subsection 66(1)

Omit month, substitute calendar month.

343  Subsection 67(1AA)

Omit month, substitute calendar month.

344  Subsection 71AA(4) (example)

Omit month (wherever occurring), substitute calendar month.

345  Subsection 76(1)

Omit each month, substitute each calendar month.

346  Paragraph 76(1)(a)

Omit the month, substitute the calendar month.

347  Paragraphs 77(a) and (b)

Omit month, substitute calendar month.

348  Section 78

Omit month (wherever occurring), substitute calendar month.



4)Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Further Election Commitments and Other Measures) Act 2011 (the more serious changes)- C2011A00053 - No. 53, 2011


Schedule 3 - Determinations of adjusted taxable income - Child Support (Assessment) Act 1989 said
1  Subsection 5(1)

Insert:

ATI indexation factor has the meaning given by subsection 58AA(1).

2  At the end of section 5A

Add:

             (5)  If:

                     (a)  the Australian Statistician publishes the amount (the later amount) referred to in subsection (1) for a relevant September quarter; and

                     (b)  the later amount is published in substitution for such an amount for that quarter that was previously published by the Australian Statistician;

the publication of the later amount is to be disregarded for the purposes of this Act.

3  Section 55J

Omit:

      The Registrar might make a determination of a parents adjusted taxable income if the parent has not lodged a tax return.

substitute:

      The Registrar may determine a parents adjusted taxable income in certain circumstances.

4  Subdivision B of Division 7 of Part 5 (heading)

Repeal the heading, substitute:

Subdivision BAdjusted taxable income determined by reference to taxable income etc.

5  Section 58

Repeal the section, substitute:

58  Determination by the Registrar of a parents adjusted taxable income

             (1)  This section applies if a parent is to be assessed in respect of the costs of a child in relation to a child support period and either of the following apply:

                     (a)  the parents taxable income for the last relevant year of income in relation to the period has not been assessed under an Income Tax Assessment Act;

                     (b)  the Registrar is unable to ascertain whether or not the parents taxable income for that year has been so assessed.

Information or document in the possession of the Registrar etc.

             (2)  If:

                     (a) the Registrar or the Commissioner of Taxation has information (whether oral or written) or a document in his or her possession; and

                     (b)  either:

                              (i)  an amount is specified in that information or document as the parents adjusted taxable income for the last relevant year of income; or

                             (ii)  that information or document allows the amount of the parents adjusted taxable income for the last relevant year of income to be worked out; and

                     ©  the Registrar is satisfied that the specified amount, or the amount so worked out, is a reasonable approximation of the parents adjusted taxable income for that year;

the Registrar may determine that the specified amount, or the amount so worked out, is the parents adjusted taxable income for that year.

Parents taxable income assessed for the previous year of income

             (3)  If:

                     (a)  the parents taxable income for a year of income has been assessed under an Income Tax Assessment Act; and

                     (b)  that year (the previous year) is the year of income before the last relevant year of income;

the Registrar may determine that the parents adjusted taxable income for the last relevant year of income is the amount worked out by multiplying the parents adjusted taxable income for the previous year by the ATI indexation factor.

Parents taxable income assessed for an earlier year of income

             (4)  If:

                     (a)  the parents taxable income for the previous year has not been assessed under an Income Tax Assessment Act; but

                     (b)  the parents taxable income for an earlier year of income has been so assessed;

the Registrar may determine that the parents adjusted taxable income for the last relevant year of income is the greater of the following amounts:

                     ©  the amount worked out by multiplying the parents adjusted taxable income for the earlier year of income (or, if the parents taxable income has been so assessed for more than one earlier year of income, the most recent of those years) by the ATI indexation factor;

                     (d)  the amount that is equal to two‑thirds of the annualised MTAWE figure for the relevant September quarter in relation to the child support period.

Other circumstances

             (5)  If:

                     (a)  subsections (2), (3) and (4) do not apply in relation to the parent; or

                     (b)  the Registrar decides not to make a determination in relation to the parent under one of those subsections;

the Registrar may determine that the parents adjusted taxable income for the last relevant year of income is an amount that is at least two‑thirds of the annualised MTAWE figure for the relevant September quarter in relation to the child support period.

58AA  ATI indexation factor for determinations under section 58

             (1)  The ATI indexation factor is:

where:

AWE amount for a September quarter of a year of income means the amount published for the reference period in the quarter by the Australian Statistician in a document titled Average Weekly Earnings, Australia (or, if that title changes, in a replacement document) under the headings Average Weekly EarningsTrendPersonsAll employees total earnings (or, if any of those headings change, under any replacement headings).

reference period in a September quarter of a year of income means the period described by the Australian Statistician as the last pay period ending on or before the third Friday of the middle month of the quarter.

September quarter of a year of income means the quarter ending on 30 September of that year.

tax return year means:

                     (a)  if subsection 58(3) appliesthe year of income before the last relevant year of income in relation to a child support period; or

                     (b)  if subsection 58(4) appliesthe earlier year of income that applies under paragraph 58(4)©.

             (2)  The ATI indexation factor is to be calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

             (3)  If:

                     (a)  the Australian Statistician publishes an AWE amount (the later amount) for a September quarter of a year of income; and

                     (b)  the later amount is published in substitution for an AWE amount for that quarter that was previously published by the Australian Statistician;

the publication of the later amount is to be disregarded for the purposes of this section.

6  Section 150C

Repeal the section.

7  After subsection 155(2)

Insert:

          (2A)  Before the end of each calendar year, the Secretary must publish in the Gazette the AWE amount (within the meaning of subsection 58AA(1)) for the quarter ending on 30 September of that year.

8  Subsection 155(3)

Omit and (2), substitute , (2) and (2A).

9  Applicationsubsection 5A(5) of the Child Support (Assessment) Act 1989

Subsection 5A(5) of the Child Support (Assessment) Act 1989, as inserted by this Schedule, applies in relation to the amount referred to in subsection 5A(1) of that Act that is published before or after the commencement of this item.

10  Applicationsubsection 58AA(3) of the Child Support (Assessment) Act 1989

Subsection 58AA(3) of the Child Support (Assessment) Act 1989, as inserted by this Schedule, applies in relation to an AWE amount (within the meaning of subsection 58AA(1) of that Act, as inserted by this Schedule) that is published before or after the commencement of this item.

11  Saving provision

If:

                     (a)  a determination was made under section 58 of the Child Support (Assessment) Act 1989 before the commencement of this item; and

                     (b)  the determination was in force immediately before that commencement;

the determination has effect, after that commencement, as if it had been made under section 58 of that Act as inserted by this Schedule.



Schedule 5Other amendments - Child Support (Assessment) Act 1989 said
32  Subsection 5(1) (at the end of the definition of tax free pension or benefit)

Add:

             ; and (j)  if the payment is a payment under the Social Security Act 1991does not include tax‑exempt pension supplement (within the meaning of subsection 20A(6) of that Act); and

                     (k)  if the payment is a payment under the Veterans Entitlements Act 1986does not include tax‑exempt pension supplement (within the meaning of subsection 5GA(5) of that Act).


 :$ ooops. I used the wrong copy of the legislation when I originally answered the question (muggins used the previous copy of the legislation). 63AA-63AF were introduced in 2010. However, the other changes as detailed above have been made.
I think some of the issues you are having relating to the estimate are because the estimate incomes are now aligned to financial years and not child support periods.

If you lodged an estimate in May 2010 for the financial year starting 01 July 2011 (which is possible given the changes from the 2010 Act amendments), the estimate must be used until the end of the financial year, unless you revoke it and replace it with a new one, i.e. amend the estimate

"61  Effect of election
             (1)  If:
                     (a)  a parent makes an election under subsection 60(1) relating to a year of income; and
                     (b)  the parent is to be assessed in respect of the costs of a child of the parent for a day in a child support period; and
                     ©  the day occurs in the application period for the election;
                           then, for the purposes of so assessing the parent, the parents adjusted taxable income is the amount that applies under subsection 60(2) or 60(3).
          (1A)  The application period for an election under subsection 60(1) relating to a year of income is the period that:
                     (a)  starts:
                              (i)  if the parent made the election before the year of income started or on the first day of the year of incomeon the first day of that year of income; or
                             (ii)  otherwiseon the start day for the election;
                            unless the election is revoked before that day; and
                     (b)  ends:
                              (i)  at the end of the last day of that year of income; or
                             (ii)  if the parent revokes the election before that day and makes another election (the later election) under subsection 62A(1) relating to the year of incomeat the end of the day before the start day for the later election."     

You could put in an estimate from today equaling the income you want used, just be aware that if the current income is higher, you will have arrears when it is reconciled.

Changes to CSA (The Child Support Assessment Act) for 2011

The changes to CSA (The Child Support Assessment Act) for 2011 are in the following:
  • Statute Law Revision Act 2011 #5 Date of Assent 22/03/2011 and date of commencement 19/04/11
  • Human Services Legislation Amendment Act 2011 (2nd Reading Speech 2010 House of Reps Hansard Page 3758) #32 Date of Assent 25/05/2011 and date of commencement 1/07/11
  • Families, Housing , Community Services and Indigenous Affairs and Other Legislation Amendment (Further Election Commitments and Other Measures ) Act 2011 #53 Date of Assent 28/06/2011 and date of commencement 1/07/11

Further commentary:
In relation to the three bills listed in your email, only one is a FaHCSIA bill.
 
Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Further Election Commitments and Other Measures) Bill 2011
 
The bill amends the Child Support (Assessment) Act 1989 to determine a parents taxable income by using their previous taxable income, indexed by growth in wages, when a tax return has not been lodged.
 
The CSNSEG group were briefed about this measure at the February 2011 meeting prior to this bill being introduced into Parliament. (My error in not picking this up as I did not attend the February meeting)
 
The other bills mentioned in your email were initiated by the Attorney-Generals Department and the Department of Human Services.

Statute Law Revision Act 2011
 
The responsible portfolio for this bill is the Attorney-Generals Department.
 
The bill amends 36 Acts to correct technical and other errors and modernise language; repeals eight redundant Acts; amends 76 Acts to provide that Commonwealth ministers are mentioned by reference to the administration of identified legislation; amends 53 Acts to provide that specific departments are mentioned by reference to the minister administering legislation; and amends 103 Acts to update administrative references.
 
Human Services Legislation Amendment Act 2011 (No 32, 2011)
 
The responsible portfolio for this Act is Human Services.  

The main amendments relate to the Human Services (Medicare) Act 1973 and the Human Services (Centrelink) Act 1997 (formerly the Medicare Australia Act 1973 and Commonwealth Service Delivery Agency Act 1997 respectively).
 
The Act integrates Centrelink and Medicare Australia into the Department of Human Services, creating the offices of the Chief Executive Medicare and Chief Executive Centrelink within the Department of Human Services (DHS).  The Act amends the Child Support (Registration and Collection) Act 1988 to align the provisions for the appointment of the Child Support Registrar with the provisions of the appointment of the Chief Executive Centrelink and the Chief Executive Medicare.
 
The Act also amends the provisions relating to the use and disclosure of customer information in the Child Support (Registration and Collection) Act 1988 to enable DHS to use child support customer information for other programs in the Department where the customer consents to this use.  It also clarifies the way in which DHS employees can handle customer information where it is subject to overlapping sets of secrecy provisions.
 
There are also a couple of other recent bills that have impacts on the child support legislation.  They are:

Child Support (Registration and Collection) Amendment Bill 2011
 
The responsible portfolio for this bill is Human Services.
 
The bill amends the Child Support (Registration and Collection) Act 1988 (the Act) to enable certain powers of the Child Support Registrar to be delegated to persons outside the Department of Human Services; and to update certain criminal penalty provisions within the Act.
 
The bill received Royal Assent on 4 August 2011.
 
Acts Interpretation Amendment Bill 2011
 
The responsible portfolio for this bill is the Attorney-Generals Department.
 
The Acts Interpretation Act 1901 (the Act) is an Act of general application, one purpose of which is to reduce the size of other legislation by including within it common provisions, thereby avoiding their repetition in other Acts.  For example, the Act contains numerous definitions that apply to all Commonwealth Acts.  
 
The need for consequential amendments arose because the Bill aims to improve the structure of the Act so that it is more user-friendly.  
 
The bill amends the Child Support (Registration and Collection) Act 1988 and the Child Support (Assessment) Act 1989 to align the definitions of the term month.
 
Specifically, the changes that will occur include:
 
   Current references to month that mean a month of the calendar (January, February, March etc) will be replaced with the words calendar month.
   Current references to a calendar month that mean something other than a month of the calendar (e.g. June 15 to July 14) will be replaced with the word month.
   Current references to a named month will be replaced with the words calendar month.
 
The bill received Royal Assent on 27 June 2011 and is scheduled to commence on 28 December 2011.

I hope this information is of assistance.  Please let me know if you require anything further.

Secretary SPCA said
I certainly acknowledge and appreciate the detailed response from Jxxxx, Child Support, Child Support Policy Section, Family and Child Support Policy Branch FaHCSIA

Last edit: by Secretary SPCA


Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 
Burbs said
I think some of the issues you are having relating to the estimate are because the estimate incomes are now aligned to financial years and not child support periods.

If you lodged an estimate in May 2010 for the financial year starting 01 July 2011 (which is possible given the changes from the 2010 Act amendments), the estimate must be used until the end of the financial year, unless you revoke it and replace it with a new one, i.e. amend the estimate
CSA say in an official response that the Registrar may refuse to accept a persons election to estimate their adjustable taxable income (ATI) if the Registrar is satisfied that:

   The amount estimated is likely to be less than the parents actual ATI; or
   The YTD amount provided by the parent is more than the amount the Registrar considers is likely to be the parents actual YTD income for that year.  

The Registrar is required to provide a written notice of this decision to the parent.  The Child Support Agencys Guide contains further information on this issue.


Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 
So if the CSA use their powers to see into the future and guess that a parent will earn more than the parent has estimated, and at the end of that period, the parent lodges a Tax Return, and the CSA discovers their crystal ball was faulty (and the parent's estimate was in fact correct) will they alter and backdate the parent's child support assessment to reflect the true facts?
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