Media Release
23 June 2008
Minister unveils tough new program to collect child support
The Minister for Human Services, Senator Joe Ludwig, has announced a range of tough new measures aimed at boosting the collection of child support payments to ensure children of separated parents receive the support they deserve.
The measures target separated parents not doing the right thing and include:
- The extension of covert optical surveillance
- A new tax regulation requiring both parents to lodge a tax return
- New arrangements to seize assets
- Stopping salary sacrifice being used to minimise child support obligations
“I want to reinforce this message to parents who fail to meet their obligations: If you don’t do the right thing, you will be caught and will have to face the consequences,” Senator Ludwig said.
“Parents should do the right thing by their kids and give them the level of support they deserve. “
The Minister announced the measures at the launch of the Child Support Agency’s first compliance strategy, “CSA: Supporting parents to meet their child support obligations 2008-2010.”
“In the past two years, the Child Support Compliance Program has collected almost $100 million in overdue payments for the children of separated parents,” Senator Ludwig said.
“The measures I’ve announced will strengthen the CSA’s hand in its efforts to collect outstanding child support payments.”
“These measures are an essential component of the wider changes in the Child Support Scheme.”
“The new scheme is a fairer and more balanced approach to assessing child support and will start in a week’s time.”
“The CSA’s compliance approach underpins the integrity of the new scheme with a balance of education, support, advice and compliance activities,” Senator Ludwig said.
“The CSA’s compliance program aims to ensure child support assessments accurately reflect both parents’ incomes and that the right amount of child support is paid in full and on time.”
“While most parents do the right thing, the CSA will pursue parents who try to unfairly advantage themselves through inaccurate income reporting or nonpayment,” Senator Ludwig said.
“This compliance program has also resulted in more accurate assessments being issued. Some reassessments have been a result of receiving parents being investigated for under-reporting their income in order to maximise child support and Family Tax Benefit.”
“These measures are about putting kids first and ensuring the children of separated parents get the support they need.”
“The new measures will ensure more separated parents meet their responsibilities to their children.”
Background on the new compliance initiatives:
Optical Surveillance Trial: From 1 July 2008 the CSA will trial covert optical surveillance in a limited number of serious cases where there is a suspicion that a parent has committed an offence under child support legislation, such as providing false or misleading information in relation to their child support case. The trial is set to run for 12 months.
Tax Return Regulation: For the 2007/08 financial year all Child Support Agency parents (not just paying parents) must lodge a tax return, unless their taxable income was less than $18,252 and they received Australian Government pensions, allowances or payments.
Insolvency Trustee Service of Australia partnership: The CSA has entered into a partnership with the Insolvency Trustee Service of Australia (ITSA) to seize and sell a parent’s assets where they have not complied with a court order for payment of outstanding child support.
Salary Sacrificing: The CSA is working with the Australian Taxation Office (ATO) to automatically add salary sacrificed amounts to income for child support purposes, to ensure child support assessments are correct and people aren’t salary sacrificing in order to reduce their child support income.
Further details about the initiatives announced by the Minister are included in CSA: Supporting parents to meet their child support responsibilities 2008-2010, which was released by the Minister today. An outline of the CSA’s compliance program results are available at www.csa.gov.au.
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