CHILD SUPPORT LEGISLATION AMENDMENT ACT 1998 NO. 120, 1998 - SCHEDULE 17

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CHILD SUPPORT LEGISLATION AMENDMENT ACT 1998 NO. 120, 1998 - SCHEDULE 17

- Flexible due dates for child support

Child Support (Registration and Collection) Act 1988

1 Subsection 4(1) (after paragraph (a) of the definition of appealable refusal decision )

Insert:

(aaa) a decision under subsection 26B(3) or section 65B refusing to register an elected period;

2 Subsection 4(1)

Insert:

"initial period", in relation to a registrable maintenance liability or a registered maintenance liability, means the period entered in the Child Support Register under paragraph 26(2)(a).

3 Subsection 4(1)

Insert:

payment period, except in section 76, means one of the following periods:

(a) a week; (b) a fortnight; (c) a 4 week period; (d) a month; (e) a calendar month.

4 Section 26

Repeal the section, substitute:

26
Particulars of liability to be entered in Child Support Register

Particulars of the child support assessment, court order or maintenance agreement

(1): The entry in the Child Support Register in relation to a registered maintenance liability must include particulars from the child support assessment, court order or maintenance agreement under which the liability arose. Those particulars are as follows:

(a) the name of the payer; (b) the name of the payee; (c) particulars of the child support assessment, court order or maintenance agreement under which the liability arose and each assessment, court order and maintenance agreement varying or otherwise affecting the first-mentioned assessment, order or agreement, being particulars that are, in the opinion of the Registrar, sufficient to adequately identify the basis of the liability; (d) the name and date of birth of each child to whose maintenance the entry relates; (e) the name of any other person to whose maintenance the entry relates; (f) the periodic amount, or the aggregate of the periodic amounts that are: (i) stipulated in the child support assessment, court order or maintenance agreement under which the liability arose; and (ii) payable by the payer in relation to the entry; (g) if the entry relates to the maintenance of 2 or more persons—the periodic amount attributable to each of them; (h) the period specified in the child support assessment, court order or maintenance agreement as the period at which amounts are payable under the liability; (i) particulars of any terms and conditions of the court order or agreement that the Registrar considers necessary or desirable to include in the entry to ensure that all the terms and conditions of the order or agreement relating to the liability are fully given effect to under this Act.

Particulars as to the payment period and payment rate

(2): The entry in the Register must also include particulars relating to the payment rate and payment period in respect of the liability. Those particulars are as follows:

(a) the initial period (determined under section 26C) (if any) at which an amount is payable in respect of the liability; (b) the payment period (determined under section 26A, 26B or 42A or Part IV), after the initial period (if any), at which amounts are payable in respect of the liability, and the start day of the period; (c) if employer withholding is to apply in relation to a liability—a weekly rate of payment in relation to the periodic amount, or the aggregate of the periodic amounts; (d) the rate of payment (weekly, fortnightly, 4 weekly or monthly) in relation to the periodic amount, or the aggregate of the periodic amounts, payable by the payer in relation to the entry and the amount of the rate of payment.

: Note 1: For payment period see subsection 4(1).

Particulars relating to enforceability of the liability

(3): The entry in the Register must also include particulars relating to the enforceability of the liability. Those particulars are as follows:

(a) the day on which the liability first becomes enforceable under this Act; (b) if the liability ceases to be enforceable under this Act (whether on one occasion or more than one occasion)—each day on which the liability ceases to be so enforceable; (c) if the liability ceases to be enforceable under this Act and again becomes so enforceable (whether on one occasion or more than one occasion)—each day on which the liability again becomes enforceable under this Act; (d) particulars of any suspension of the liability.

Other particulars that the Register may include

(4): The entry in the Register may also include the following particulars in relation to the liability:

(a) the daily rate of payment in relation to the periodic amount, or the aggregate of the periodic amounts, payable by the payer in relation to the entry; (b) a statement of whether or not employer withholding applies in relation to the liability; (c) such other matters as the Registrar considers necessary or desirable to be included in the Child Support Register.

26A Payment period to be entered in Register under paragraph 26(2)(b) if Registrar to collect by deduction from salary or wages

Application of section

(1): This section applies to a registrable maintenance liability or an enforceable maintenance liability if the Registrar is to collect amounts due to the Commonwealth under, or in relation to, the liability by deduction from the salary or wages of the payer of the liability.

Object of section

(2): This section deals with the determination, in relation to a liability, of:

(a) the payment period the Registrar must enter in the Child Support Register under paragraph 26(2)(b) as the period at which amounts are payable in respect of the liability (see subsection (3)); and (b) the day that the Registrar must enter in the Register under paragraph 26(2)(b) as the day from which a payment period (see subsection (4)) starts.

: Note: For payment period see subsection 4(1).

Period that must be registered where liability to be collected by deduction from salary or wages

(3): If the Registrar is going to collect amounts due to the Commonwealth under a liability, or in relation to the liability, by deduction from the salary or wages of the payer, the period that the Registrar must enter in the Register is the payment period that reflects the payer's pay cycle.

: Example: If a payer is paid weekly, the payment period the Registrar must enter in the Child Support Register will be a week. Similarly, if the payer is paid monthly, the payment period the Registrar must enter in the Register will be a month.

Day from which a payment period starts

(4): The start day of the payment period referred to in subsection (3) in respect of the liability, is a day specified by the Registrar. The day that the Registrar must specify is the first day of the first of the payment periods in which deduction from the salary or wages of the payer will occur.

26B Payment period to be entered in Register under paragraph 26(2)(b) if payer makes voluntary payments

Application of section

(1): This section applies to a registrable maintenance liability or an enforceable maintenance liability if the Registrar is not going to collect amounts due to the Commonwealth under, or in relation to, the liability by deduction from the salary or wages of the payer of the liability.

Object of section

(2): This section deals with the determination, in relation to a liability of:

(a) the payment period that the Registrar must enter in the Child Support Register under paragraph 26(2)(b) as the period at which amounts are payable in respect of the liability (see subsections (3) and (5)); and (b) the day that the Registrar must enter in the Register under paragraph 26(2)(b) as the day from which an elected period (see subsection (4)) starts.

: Note: For payment period see subsection 4(1).

Period that must be registered when liability to be paid voluntarily and election made

(3): If:

(a) the Registrar is not going to collect amounts due to the Commonwealth under, or in relation to, a liability by deduction from the salary or wages of the payer of the liability; and (b) the payer makes an election that a payment period be entered in the Register as the period at which amounts are payable in respect of the liability; and (c) the Registrar is satisfied that it will be more convenient for the payer to accrue debts in respect of the elected period instead of a month;

the Registrar must enter in the Register the elected period as the period at which amounts are payable in respect of the liability.

Day from which elected period starts

(4): In making an election under subsection (3), the payer must specify the day from which the payment period starts. The Registrar must enter in the Register the specified day as the day from which the elected period starts.

: Example 1: The payer elects a 4 week period as the payment period. The payer elects that the start day of the period will be 8 July which is a Wednesday. Therefore the period will end 4 weeks later on a Tuesday.

Period that must be registered when liability to be paid voluntarily and no election made

(5): If:

the Registrar must enter in the Register a month as the period at which amounts are payable in respect of the liability.

Manner in which election is to be made

(6): An election made under subsection (3) must be made in the manner specified by the Registrar.

: Note: Section 16A provides for the Registrar to specify the manner in which an election may be made.

26C Initial period that may be registered under paragraph 26(2)(a)

(1): If the Registrar is about to enter a period in the Child Support Register under subsection 26A(3) or 26B(3) in respect of a registrable maintenance liability or an enforceable maintenance liability, the Registrar may also enter in the Register an initial period under paragraph 26(2)(a) in respect of the liability.

When will the initial period start and end—Registrar about to enter liability

(2): If the Registrar is about to register the liability, the initial period starts on the day on which the liability first becomes enforceable under this Act and ends:

(a) in the case of the Registrar entering in the Register a payment period under subsection 26A(3)—on the day before the start day specified by the Registrar under subsection 26A(4) in respect of the liability; or (b) in the case of the Registrar entering in the Register a payment period under subsection 26B(3)—on the day before the start day specified by the payer of the liability under subsection 26B(4).

: Note: Section 28 deals with when a liability first becomes enforceable under this Act.

When will the initial period start and end—Registrar varies Register under subsection 37B(7) to again make a registered maintenance liability enforceable

(3): If:

(a) a low-income non-enforcement period in relation to a registered maintenance liability ends; and (b) the Registrar has varied the particulars of the Register as required by paragraph 37B(7)(1)(a) by specifying the end of the low-income non-enforcement period as the time at which the liability again becomes enforceable under this Act;

the initial period, in respect of the liability, starts on the day the Registrar has entered in the Register as the time at which the liability again becomes enforceable under this Act and ends:

(c) in the case of the Registrar entering in the Register a payment period under subsection 26A(3)—on the day before the start day specified by the Registrar under subsection 26A(4) in respect of the liability; or (d) in the case of the Registrar entering in the Register a payment period under subsection 26B(3)—on the day before the start day specified by the payer of the liability under subsection 26B(4).

When will the initial period start and end—Registrar receives an application under subsection 39(1) to again make a registered maintenance liability enforceable

(4): If:

(a) the Registrar receives an application under subsection 39(1) for a registered maintenance liability to again become enforceable under this Act; and (b) the Registrar has varied the particulars of the Child Support Register as required by paragraph 39(6)(a) by specifying a day as the day on which the liability again becomes enforceable under this Act;

the initial period, in respect of the liability, starts on the day the Registrar has entered in the Register as the day on which the liability again becomes enforceable under this Act and ends:

5 After section 28A

Insert:

28B Conversion of periodic amounts into payment rates in respect of payment periods

(1): The Registrar must convert a periodic amount payable under a registered maintenance liability arising under a court order or a maintenance agreement to:

(a) a daily rate of payment; and (b) one of the following rates of payment: (i) weekly; (ii) fortnightly; (iii) 4 weekly; (iv) monthly.

: Note: An amount payable under a registrable maintenance liability is entered on the Child Support Register under paragraph 26(1)(f).

(2): The Registrar must convert an amount payable under a registered maintenance liability arising under a child support assessment in respect of a day into one of the rates of payment set out in paragraph (1)(b).
(3): If the Registrar is to collect amounts due to the Commonwealth under, or in relation to, a liability by deduction from the salary or wages of the payer of the liability, the Registrar must convert the periodic amount or daily amount (as the case may be) to a weekly rate of payment.
(4): The rate of payment to which the Registrar must convert a periodic amount payable under a registered maintenance liability, is the rate that reflects the payment period entered in the Register under paragraph 26(2)(b) in respect of the liability.

: Note 1: For payment period see subsection 4(1).

6 Section 29

After "weekly", insert ", fortnightly, 4 weekly".

7 Section 30

Repeal the section, substitute:

30 Effect of registration

(1): If a registrable maintenance liability is registered under this Act, amounts payable under the child support assessment, court order or maintenance agreement under which the liability arises are debts due to the Commonwealth by the payer in accordance with the particulars of the liability entered in the Child Support Register.
(2): In particular, the amounts are payable by the payer at the payment rate entered in the Register under paragraph 26(2)(d) in respect of the periods entered in the Register under paragraphs 26(2)(a) and (b).

: Note: Section 28B requires the Registrar to convert the periodic amount payable in respect of a registrable maintenance liability to a rate of payment depending upon the payment period determined in respect of the liability.

(3): If a registrable maintenance liability is registered under this Act, the payee is not entitled to, and may not enforce payment of, amounts payable under the liability.

8 At the end of Part III

Add:

42A Registrar may vary Child Support Register to change period entered under paragraph 26(2)(b) to reflect pay cycle

(1): If:

(a) the Registrar is collecting amounts due to the Commonwealth under, or in relation to a registered maintenance liability, by deduction from the salary or wages of the payer of the liability; and (b) the Registrar becomes aware, other than by means of a notice referred to in paragraph 42B(1)(a) or (b), that the period of the payer's pay cycle is different from the payment period entered in the Child Support Register under paragraph 26(2)(b) in respect of the payer;

the Registrar may vary the particulars in the Child Support Register by deleting the period in the Register and substituting another payment period and start day of the period.

(2): The period that the Registrar must register in substitution is the payment period that reflects the payer's pay cycle. The start day that the Registrar must register is the day specified by the Registrar as the start day of the period.

: Note: For payment period see subsection 4(1).

42B Registrar may vary Child Support Register if payer's pay cycle changes

(1): If:

(a) the Registrar receives: (i) a notice under subsection 47(1) from an employer who is making deduction from a payer's salary or wages; or (ii) a notice from an payer under subsection 111(1) (Notification of commencement of employment); and (b) the notice indicates that the period of the payer's pay cycle is different from the payment period entered in the Child Support Register under paragraph 26(2)(b) in respect of the payer;

the Registrar must, within 28 days of receiving the notice, vary the particulars in the Child Support Register by deleting the period and start day in the Register and substituting another payment period and start day.

(2): The period that the Registrar must register in substitution is the payment period that reflects the payer's pay cycle. The start day that the Registrar must register is the day specified by the Registrar as the start day.

: Note: For payment period see subsection 4(1).

9 After Part IV

Insert:

Part IVA—Election available to payers who make voluntary payments of maintenance liabilities

65A Election under this Part

(1): If the Registrar is not going to collect amounts due to the Commonwealth under, or in relation to, an enforceable maintenance liability by deduction from the salary or wages of the payer of the liability, the payer may elect that the payment period entered in the Child Support Register in respect of the liability under paragraph 26(2)(b) be changed.
(2): In making the election, the payer must:

(a) specify a payment period; and (b) specify the day from which the period starts.

(3): An election made under subsection (1) must be made in the manner specified by the Registrar.

: Example 1: The payer elects a 4 week period as the payment period. The payer elects that the start day of the period will be 8 July which is a Wednesday. Therefore the period will end 4 weeks later on a Tuesday.

65B Registrar to act on election

If:

(a) a payer of an enforceable maintenance liability makes an election of a kind set out in section 65A; and (b) the Registrar is satisfied that it will be more convenient for the payer to accrue debts in relation to the elected period instead of the period in the Child Support Register;

the Registrar must, within 28 days of receiving the election, vary the particulars of the entry in the Register in relation to the payment period by:

(c) substituting the elected period; and (d) entering in the Register the specified day as the day from which the period starts.

10 Section 66

Repeal the section, substitute:

66 When child support debts become payable

(1): An amount that becomes a child support debt in respect of a day in an initial period is due and payable on the seventh day of the month following that day.
(2): An amount that becomes a child support debt in respect of a payment period is due and payable on the seventh day after the end of the period.

: Note: For initial period and payment period see subsection 4(1).

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