The Government today announced reforms to the child support scheme which will improve the scheme's flexibility, provide greater equity, and more regular financial support for children.
The reforms underscore the principle that children are the financial responsibility of their parents and that the Government should not seek to intrude unnecessarily into peoples lives. Government involvement will, however, provide the safety net to ensure children of separated parents are adequately supported and that the general community is not asked to carry an undue burden. The agreed package includes:
- changes to the calculation of child support liabilities payments, recognising that after separation, some payers do not have sufficient means to support themselves and their second families;
- additional assistance to many thousands of children by introducing a minimum payment of child support and by including a wider range of income when assessing child support liability;
- that parents will be able to move from the Child Support Agency collection to private collection, by agreement, at any time, allowing the Child Support Agency to concentrate on those people who are unable to reach a private agreement;
- that parents will be required to move into private collection where they have a consistent payment record, but the Child Support Agency will continue to provide a safety net if the new arrangements fail;
- support programs encouraging parents to make private collection arrangements. These programs include self help, education, mediation and help for payers; and
- a range of administrative reforms to make the scheme more responsive to people's needs by, for example, streamlining arrangements so that payments are made up to 20 days earlier and including the right to object to any Child Support Agency decision.
Of the 163 recommendations of the Joint Select Committee into Certain Family Law Issues 111 have now been addressed. The remaining 52 recommendations will be addressed shortly.
Eleven recommendations were addressed in the legislation that was passed in June 1997 and 53 were addressed by the previous government's interim response.
Today's reforms, which in many cases will lead to significantly simplified and more reliable payment arrangements, are a very positive step in what is a difficult and highly emotional social issue.
For the first time, where parents can make sensible arrangements for their children's support, as is the case with the majority of Child Support Agency clients, the new private payment arrangements give them a chance to get on with their lives without unnecessary bureaucratic intervention. It may also herald a better deal for children who deserve to have the continuing involvement of both parents in their lives
They are good, sound changes and they will be welcomed by all interested parties
The changes will provide real benefits to Child Support Agency clients by introducing much needed flexibility into the administration of the child support scheme and improving its timeliness, accuracy and responsiveness.
CANBERRA
30 September 1997
Contact:
John Hewitt, Senator Newman's Office 02 6277 7560 or 0417 216 342
Richard King, Senator Kemp's Office 02 6277 7360 or 0419 683 586