Media Release
20 July 2008
Agency tax blitz recovers $20 million in child support
The Child Support Agency has collected almost $20 million in overdue child support in the past financial year, as part of a blitz on separated parents who fail to lodge tax returns.
“This is a 20 per cent increase in the collection of overdue payments on the previous financial year," Minister for Human Services, Senator Joe Ludwig, said.
“It sends a strong message to people who try to hide their true income to evade their child support responsibilities: You will be caught.”
In 2007-08, the CSA referred around 125,000 separated parents to the Australian Taxation Office for not lodging tax returns.
This resulted in almost 95,000 returns lodged by 57,000 parents and $19,745,597 in outstanding child support being collected.
“The average overdue child support recovered from the 15,000 parents found to have a debt was almost $1300,” Senator Ludwig said.
“These are excellent results, delivering more money to children of separated families.”
“But there are still too many parents not meeting their obligations to their children. That’s why the CSA will refer another 125,000 parents to the tax office this financial year.”
“The CSA and Tax Office have been working effectively together to improve tax lodgement rates among separated parents – and not just to collect outstanding child support,” Senator Ludwig said.
“Up-to-date tax returns are essential in calculating accurate child support assessments.”
“The CSA has used the information from the tax return program to calculate more accurate child support payments.”
“It is in the best interests of separated parents to lodge their tax returns to ensure a balanced system that financially benefits their children.”
“It is one of the main reasons behind my recent announcement of new tax rules for separated parents,” Senator Ludwig said.
“From now on, all Child Support Agency parents must lodge a tax return. Before July 1 this year, only paying parents were required to lodge returns.”
The only exceptions now are parents with a taxable income less than $18,252 and who receive Australian Government pensions, allowances or payments over the entire period.
“I encourage all separated parents to do the right thing and lodge their tax return as soon as possible,” Senator Ludwig said.
CSA Tax Lodgement Program 2007/2008
| State | Customers lodging returns |
Tax returns lodged* |
Overdue child support collected $ |
|---|---|---|---|
| ACT | 787 | 1,463 | 252,546 |
| NSW | 17,886 | 30,775 | 5,544,006 |
| NT | 715 | 1,109 | 368,481 |
| Qld | 13,845 | 22,276 | 5,800,677 |
| SA | 4,090 | 6,691 | 1,139,032 |
| Tas | 1,500 | 2,395 | 453,978 |
| Vic | 12,277 | 20,627 | 3,694,177 |
| WA | 5,860 | 9,374 | 2,472,889 |
| Overseas | 57 | 129 | 19,810 |
| Total | 57,017 | 94,839 | 19,745,597 |
*Some customers have multiple tax returns to lodge.
| State | Number of collections made from customers lodging returns** |
Average collections from customers with overdue payments $ |
|---|---|---|
| ACT | 188 | 1,343 |
| NSW | 4,478 | 1,238 |
| NT | 277 | 1,330 |
| Qld | 4,498 | 1,290 |
| SA | 1,059 | 1,076 |
| Tas | 452 | 1,004 |
| Vic | 2,922 | 1,264 |
| WA | 1,632 | 1,515 |
| Overseas | 11 | 1,801 |
| Total | 15,517 | 1,273 |
**Represents the number of customers who have lodged tax returns, who had overdue child support payments and for which a collection was made.
Source: Data supplied by the ATO.
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