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Labor to increase child support

Note that The Australian newspaper's spin chooses to target and denigrate separated fathers by using the word "hit" and calling them "deadbeat dads".

What about the many mothers who:

1) Won't pay their child support (Issue: Bias and inequality favouring women); and

2) Misuse 'child support' money by not spending it on the children, but instead fraudulently spend the money on themselves (Issue: Lack of accountability for women).

ALP to increase child support

The Australian
12 August 2010

Labor to hit deadbeat dads for child support
By Patricia Karvelas, Political Correspondent

Julia Gillard will target deadbeat dads who do not lodge tax returns and avoid paying child support.

The Prime Minister said yesterday she would strengthen the compliance regime on the use of default income in child support assessments with a new, more accurate default income arrangement.

Ms Gillard said that almost one in four child support cases had incorrect assessments because of tax returns being filed late or not being lodged at all.

Some parents had failed to lodge returns for more than seven years.

This non-compliance with tax obligations works against the policy objective of the Child Support Scheme that parents contribute towards the cost of raising their children according to their capacity to pay, the Labor Party says.

Under legislative changes made in 2006, and implemented during 2008, a new default income of two-thirds of male total average weekly earnings has applied in child support cases where a person does not lodge their tax return for more than two years.

This default income is about $39,000 per annum.

Since July 1, 2008, there has been a 325 per cent increase in the use of this default income where it is lower than the person's previous taxable income.

A change will be made to strengthen compliance so that when a person does not lodge a tax return, the default income will no longer apply where that income is lower than their last known taxable income.

Instead, the old taxable income will be indexed by wages growth.

This stronger compliance will save $58.8 million over four years through reduced government expenditure on family assistance.

Edited

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