Commonwealth: Child Support Legislation Amendment (Reform of the Child Support Scheme—New Formula and Other Measures) Act 2006 (Cth)

Child Support Legislation Amendment (Reform of the Child Support Scheme—New Formula and Other Measures) Act 2006 Act No. 146 of 2006 as amended This compilation was prepared on 3 March 2010 [This Act was amended by Act No. 82 of 2007; No. 63 of 2008; No. 8 of 2010] Amendments from Act No. 82 of 2007 (as amended by No. 73 of 2008) [Schedule 1 (item 1) amended subsection 2(1) Schedule 1 (item 20) amended section 4 Schedule 1 (item 21) added Schedule 9 Schedule 1 (item 99) amended item 115 of Schedule 2 Schedule 1 (item 100) added item 116A to Schedule 2 Schedule 1 (item 212) repealed and substituted item 104 of Schedule 2 Schedule 1 (item 213) repealed items 1 and 2 of Schedule 6 Schedule 1 (item 214) repealed item 4 of Schedule 6 Schedule 1 (item 1) commenced immediately after 6 December 2006 Schedule 1 (items 20 and 21) commenced on 22 June 2007 Schedule 1 (items 99 and 100) commenced immediately before 1 January 2008 Schedule 1 (item 212) commenced immediately before 1 July 2008 Schedule 1 (items 213 and 214) commenced immediately before 1 July 2008 For application provision see Act No. 82, 2007, Schedule 1 (item 80)] Amendments from Act No. 63 of 2008 [Schedule 6 (item 16) repealed and substituted item 73 and added item 73A to Schedule 5 Schedule 6 (item 17) amended subitem 74(2) of Schedule 5 Schedule 6 (items 16 and 17) commenced immediately after 6 December 2006] Amendments from Act No. 8 of 2010 [Schedule 2 (item 2) repealed and substituted heading to item 114 of Schedule 2 Schedule 2 (item 3) added item 114A to Schedule 2 Schedule 2 (items 2 and 3) commenced immediately after 1 July 2008] Prepared by the Office of Legislative Drafting and Publishing, Attorney‑General's Department, Canberra Contents 1 Short title 2 Commencement 3 Schedule(s) 4 Obtaining information 5 Definitions 6 Regulations Schedule 1—The formulas (commencing on 1 July 2008) Child Support (Assessment) Act 1989 Schedule 2—Consequential amendments and application and saving provisions relating to the formulas Part 1—Consequential amendments A New Tax System (Family Assistance) Act 1999 Child Support (Assessment) Act 1989 Child Support (Registration and Collection) Act 1988 Family Law Act 1975 Part 2—Application and saving provisions Schedule 3—SSAT review of child support decisions (commencing on 1 January 2007) Part 1—Amendments Child Support (Assessment) Act 1989 Child Support (Registration and Collection) Act 1988 Family Law Act 1975 Social Security (Administration) Act 1999 Part 2—Application provisions Schedule 4—Other amendments commencing on 1 January 2007 Part 1—Amendments Child Support (Assessment) Act 1989 Child Support (Registration and Collection) Act 1988 Part 2—Application provisions Schedule 5—Amendments relating to child support agreements and court orders (commencing on 1 July 2008) Part 1—Main amendments Division 1—Binding and limited child support agreements Child Support (Assessment) Act 1989 Division 2—Lump sum payments A New Tax System (Family Assistance) Act 1999 Child Support (Assessment) Act 1989 Child Support (Registration and Collection) Act 1988 Division 3—Notional assessments A New Tax System (Family Assistance) Act 1999 Child Support (Assessment) Act 1989 Child Support (Registration and Collection) Act 1988 Part 2—Application and transitional provisions Part 3—Consequential amendments A New Tax System (Family Assistance) (Administration) Act 1999 Social Security Act 1991 Schedule 6—Amendments relating to departure orders (commencing on 1 July 2008) Part 1—Amendments Child Support (Assessment) Act 1989 Part 2—Application provision Schedule 7—Other amendments commencing on 1 July 2008 Part 1—Amendments Child Support (Assessment) Act 1989 Child Support (Registration and Collection) Act 1988 Veterans' Entitlements Act 1986 Part 2—Application provisions Schedule 8—Amendments relating to family tax benefit (commencing on 1 July 2008) Part 1—Regular care children Division 1—Amendments A New Tax System (Family Assistance) Act 1999 A New Tax System (Family Assistance) (Administration) Act 1999 Child Support (Registration and Collection) Act 1988 Social Security Act 1991 Veterans' Entitlements Act 1986 Division 2—Application and saving provisions Part 2—Maintenance income test Division 1—Amendments A New Tax System (Family Assistance) Act 1999 Division 2—Application provision Schedule 9—Transitional provision relating to court orders made before 1 July 2008 An Act to amend the law relating to child support, and for related purposes [Assented to 6 December 2006] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Child Support Legislation Amendment (Reform of the Child Support Scheme—New Formula and Other Measures) Act 2006. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 6 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent. 6 December 2006 2. Schedule 1 1 July 2008. 1 July 2008 3. Schedule 2, items 1 to 91 1 July 2008. 1 July 2008 3A. Schedule 2, items 92 to 96 1 January 2008. 1 January 2008 3B. Schedule 2, items 97 to 116 1 July 2008. 1 July 2008 3C. Schedule 2, item 116A 1 January 2008. 1 January 2008 3D. Schedule 2, item 117 1 July 2008. 1 July 2008 4. Schedule 2, item 118 The day on which this Act receives the Royal Assent. 6 December 2006 5. Schedule 3 1 January 2007. 1 January 2007 6. Schedule 4 Immediately after the commencement of Schedule 3 to this Act. 1 January 2007 7. Schedule 5, Part 1, Division 1 1 July 2008. 1 July 2008 8. Schedule 5, Part 1, Division 2 Immediately after the commencement of Schedule 1 to this Act. 1 July 2008 9. Schedule 5, Part 1, Division 3 Immediately after the commencement of Division 2 of Part 1 of Schedule 5 to this Act. 1 July 2008 10. Schedule 5, Part 2 The day on which this Act receives the Royal Assent. 6 December 2006 11. Schedule 5, Part 3 1 July 2008. 1 July 2008 12. Schedules 6 and 7 1 July 2008. 1 July 2008 13. Schedule 8, items 1 to 5 1 July 2008. 1 July 2008 14. Schedule 8, item 6 The day on which this Act receives the Royal Assent. 6 December 2006 15. Schedule 8, items 7 to 13 1 July 2008. 1 July 2008 16. Schedule 8, item 14 The day on which this Act receives the Royal Assent. 6 December 2006 17. Schedule 8, items 15 to 19 1 July 2008. 1 July 2008 18. Schedule 8, item 20 The day on which this Act receives the Royal Assent. 6 December 2006 19. Schedule 8, items 21 to 157 1 July 2008. 1 July 2008 Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. 4 Obtaining information (1) The Registrar may, where it is reasonably necessary for the purposes of this Act, by written notice, require a person: (a) to give to the Registrar, within a reasonable period (being a period of not less than 7 days), and in a reasonable manner, specified in the notice, such information as the Registrar requires; and (b) to attend before the Registrar, or before an officer authorised by the Registrar for the purpose, at a reasonable time and place specified in the notice, and then and there answer questions; and (c) to produce to the Registrar, at a reasonable time and place specified in the notice, any documents in the custody or under the control of the person. (2) The regulations must prescribe scales of expenses to be allowed to persons required to attend under this section. (3) A person commits an offence if the person fails to comply with a requirement under subsection (1). Penalty: 60 penalty units. (4) Subsection (3) is an offence of strict liability. Note: For strict liability, see section 6.1 of the Criminal Code. 5 Definitions In this Act: Assessment Act means the Child Support (Assessment) Act 1989. Registration and Collection Act means the Child Support (Registration and Collection) Act 1988. 6 Regulations The Governor‑General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by this Act. Schedule 1—The formulas (commencing on 1 July 2008) Child Support (Assessment) Act 1989 1 Part 5 Repeal the Part, substitute: Part 5—Administrative assessment of child support Division 1—Preliminary 35A Simplified outline The following is a simplified outline of this Part: • This Part includes the formulas used for assessing the annual rate of child support payable by a parent for a child for a day in a child support period (other than in cases where that rate is worked out in accordance with a child support agreement, a Registrar's determination under Part 6A or a court order). • The Costs of the Children Table published by the Secretary each year (based on the table in Schedule 1 to this Act) sets out the costs to parents of raising children in various age ranges. • Those costs are to be met by both parents (by paying child support or by caring for their children) according to each parent's capacity to meet the costs. • To determine each parent's capacity to meet those costs, the parents are assessed in respect of the costs of the child. • Generally, both parents' income is taken into account in determining each parent's capacity to meet the costs of their children. • The formulas also allow child support payable to non‑parent carers of children to be worked out. Division 2—The formulas Subdivision A—Preliminary 35B Simplified outline The following is a simplified outline of this Division: • The Costs of the Children Table published by the Secretary each year (based on the table in Schedule 1 to this Act) sets out the costs to parents of raising children in various age ranges. • These costs are to be met by both parents (by paying child support or by caring for their children) according to each parent's capacity to meet the costs. • To determine each parent's capacity to meet the costs, the parents are assessed in respect of the costs of the child. • Formulas 1 and 2 apply if both parents' incomes are taken into account in determining each parent's capacity to meet the costs of their children, and each parent only has one child support case. • Formulas 3 and 4 apply if both parents' incomes are taken into account in determining each parent's capacity to meet the costs of their children, and at least one of the parents has multiple child support cases. • Formulas 5 and 6 apply if only one parent's income is taken into account in determining the parent's capacity to meet the costs of his or her children (such as because the other parent is not a resident of Australia). • Formulas 2, 4, 5 and 6 also allow child support payable to non‑parent carers of children to be worked out. • In some cases, the annual rate of child support payable by a parent is assessed under Subdivision B of Division 8 (low income parents and minimum annual rates of child support). 35C Application of Part to determine annual rate of child support This Part applies in relation to the assessment of child support payable by a parent for a child, subject to: (a) any determination made by the Registrar under Part 6A (departure determinations); and (b) any order made by a court under Division 4 of Part 7 (departure orders); and (c) any provisions of a child support agreement that have effect, for the purposes of this Part, as if they were such an order made by consent. Subdivision B—Working out annual rates of child support using incomes of both parents in single child support case 35D Application of Subdivision The annual rate of child support payable for a child for a day in a child support period is assessed under this Subdivision if: (a) both parents of the child are to be assessed in respect of the costs of the child; and (b) both parents are to be assessed only in respect of the costs of: (i) that child; and (ii) any other child in the child support case that relates to that child. 35 Formula 1: Method statement using incomes of both parents in single child support case with no non‑parent carer This is how to work out the annual rate of child support payable for a child for a day in a child support period if no non‑parent carer has a percentage of care for the child for the day. Method statement Step 1. Work out each parent's child support income for the child for the day (see section 41). Step 2. Work out the parents' combined child support income for the child for the day (see section 42). Step 3. Work out each parent's income percentage for the child for the day (see section 55B). Step 4. Work out each parent's percentage of care for the child for the day (see section 48). Step 5. Work out each parent's cost percentage for the child for the day (see section 55C). Step 6. Work out each parent's child support percentage for the child for the day (see section 55D). Step 7. Work out the costs of the child for the day (see sections 55G and 55H). Step 8. If a parent has a positive child support percentage under step 6, the annual rate of child support payable by the parent for the child for the day is worked out using the formula: Note: If a parent's percentage of care for a child is more than 65%, the parent's annual rate of child support for the child is nil (see section 40C). 36 Formula 2: Working out annual rates of child support using incomes of both parents in single child support case with a non‑parent carer (1) This is how to work out the annual rate of child support payable for a child for a day in a child support period if one or more non‑parent carers have a percentage of care for the child for the day. (2) Follow steps 1 to 8 of the method statement in section 35 for each parent (disregarding subsection 55D(2) (negative child support percentages)). Annual rate payable by parent (3) If a parent's (the first parent's) child support percentage under step 6 of the method statement in section 35 is positive, then the annual rate of child support payable by the first parent for the child for the day is the annual rate of child support for the child worked out under step 8 of the method statement. Annual rate payable only to non‑parent carers (4) If: (a) the second parent's child support percentage is also positive; or (b) the second parent's child support percentage is nil or negative, and the second parent does not have at least shared care of the child during the relevant care period; then, subject to section 40B, the first parent must pay the annual rate of child support that is payable by the first parent for the child under subsection (3) to the non‑parent carer or carers in accordance with section 40A. Note 1: If both parents have a positive child support percentage, then the non‑parent carer or carers are entitled to be paid the total of the 2 annual rates of child support that are payable by the parents for the child. Note 2: Under section 40B, a non‑parent carer of a child is not entitled to be paid child support unless he or she applies under section 25A in relation to the child. Annual rate payable to parent and non‑parent carer (5) If the second parent's child support percentage is negative, and the second parent has at least shared care of the child during the relevant care period, then: (a) the first parent must pay to the second parent the annual rate of child support for the child worked out under step 8 of the method statement using the second parent's negative child support percentage (expressed as a positive); and (b) subject to section 40B, the first parent must pay to the non‑parent carer an annual rate of child support for the child that is the difference between: (i) the annual rate of child support payable by the first parent for the child under subsection (3); and (ii) the rate referred to in paragraph (a) of this subsection. Subdivision C—Working out annual rates of child support using incomes of both parents in multiple child support cases 36A Application of Subdivision The annual rate of child support payable for a child for a day in a child support period is assessed under this Subdivision if: (a) both parents of the child are to be assessed in respect of the costs of that child; and (b) at least one of the parents of the child is to be assessed in respect of the costs of another child in another child support case. 37 Formula 3: Method statement using incomes of both parents in multiple child support cases with no non‑parent carer This is how to work out the annual rate of child support payable for a child for a day in a child support period if no non‑parent carer has a percentage of care for the child for the day. Method statement Step 1. Follow steps 1 to 8 in the method statement in section 35 for each parent. Step 2. Work out each parent's multi‑case cap (if any) for the child for the day (see section 55E). Step 3. If a parent has a positive child support percentage under step 6 of the method statement in section 35, the annual rate of child support payable by the parent for the child for the day is the lower of: (a) the annual rate of child support for the child worked out under step 8 of the method statement; and (b) the parent's multi‑case cap (if any) for the child for the day. Note: If a parent's percentage of care for a child is more than 65%, the parent's annual rate of child support for the child is nil (see section 40C). 38 Formula 4: Working out annual rates of child support using incomes of both parents in multiple child support cases with a non‑parent carer (1) This is how to work out the annual rate of child support payable for a child for a day in a child support period if one or more non‑parent carers have a percentage of care for the child for the day. (2) Follow steps 1 to 8 of the method statement in section 35 for each parent (disregarding subsection 55D(2) (negative child support percentages)). (3) Work out each parent's multi‑case cap (if any) for the child for the day (see section 55E). Annual rate payable by parent (4) If a parent's (the first parent's) child support percentage under step 6 of the method statement in section 35 is positive, then the annual rate of child support payable by the first parent for the child for the day is the lower of: (a) the annual rate of child support for the child worked out under step 8 of the method statement; and (b) the first parent's multi‑case cap (if any) for the child for the day. Annual rate payable only to non‑parent carers (5) If: (a) the second parent's child support percentage is also positive; or (b) the second parent's child support percentage is nil or negative, and the second parent does not have at least shared care of the child during the relevant care period; then, subject to section 40B, the first parent must pay the annual rate of child support that is payable by the first parent for the child under subsection (4) to the non‑parent carer or carers in accordance with section 40A. Note 1: If both parents have a positive child support percentage, then the non‑parent carer or carers are entitled to be paid the total of the 2 annual rates of child support that are payable by the parents for the child. Note 2: Under section 40B, a non‑parent carer of a child is not entitled to be paid child support unless he or she applies under section 25A in relation to the child. Annual rate payable to parent and non‑parent carer (6) If: (a) the second parent's child support percentage is negative; and (b) the second parent has at least shared care of the child during the relevant care period; then, subject to section 40B, the first parent must pay the annual rate of child support that is payable by the first parent for the child under subsection (4) to the second parent and the non‑parent carer in accordance with section 40A. Subdivision D—Working out annual rates of child support using income of one parent 38A Application of Subdivision The annual rate of child support payable for a child for a day in a child support period is assessed under this Subdivision if only one parent of the child is to be assessed in respect of the costs of the child. 39 Formula 5: Method statement using income of one parent where other parent not a resident of Australia or in special circumstances This is how to work out the annual rate of child support payable for a child for a day in a child support period if a non‑parent carer of the child has applied for a parent of the child to be assessed in respect of the costs of the child because of subparagraph 25A(b)(ii) or (iii) (non‑resident of Australia or special circumstances). Method statement Step 1. Work out the parent's child support income for the day (see section 41) and double that income. Step 2. Work out the parent's percentage of care for the child for the day (see section 48). Step 3. Work out the parent's cost percentage for the child for the day (see section 55C). Step 4. Work out the costs of the child for the day (see sections 55G and 55H), assuming, in applying section 55G and Schedule 1, that the reference to the child support income of the parent in the Costs of the Children Table is a reference to the amount worked out under step 1. Step 5. Work out the following rate: Step 6. If the parent is not assessed in respect of the costs of another child who is in another child support case, the annual rate of child support payable by the parent for the child for the day is the rate worked out under step 5. Step 7. If the parent is assessed in respect of the costs of another child who is in another child support case, work out the parent's multi‑case cap for the child for the day (see section 55E). Step 8. The annual rate of child support payable by the parent for the child for the day is the lower of: (a) the rate worked out under step 5; and (b) the parent's multi‑case cap for the child for the day. Step 9. If there is only one non‑parent carer who has a percentage of care for the child for the day, the parent must pay the annual rate of child support that is payable for the child under step 5 or 8 to the non‑parent carer. If there are 2 non‑parent carers who have a percentage of care for the child for the day, then, subject to section 40B, the parent must pay the annual rate of child support that is payable for the child under step 5 or 8 to the non‑parent carers in accordance with section 40A. Note: Under section 40B, a non‑parent carer of a child is not entitled to be paid child support unless he or she applies under section 25A in relation to the child. 40 Formula 6: Method statement using income of one parent where other parent deceased This is how to work out the annual rate of child support payable for a child for a day in a child support period if a non‑parent carer of the child has applied for a parent of the child to be assessed in respect of the costs of the child because of subparagraph 25A(b)(iv) (deceased parent). Method statement Step 1. Work out the parent's child support income for the day (see section 41). Step 2. Work out the parent's percentage of care for the child for the day (see section 48). Step 3. Work out the parent's cost percentage for the child for the day (see section 55C). Step 4. Work out the costs of the child for the day (see sections 55G and 55H). Step 5. Work out the following rate: Step 6. If the parent is not assessed in respect of the costs of another child who is in another child support case, the annual rate of child support payable by the parent for the child for the day is the rate worked out under step 5. Step 7. If the parent is assessed in respect of the costs of another child who is in another child support case, work out the parent's multi‑case cap for the child for the day (see section 55E). Step 8. The annual rate of child support payable by the parent for the child for the day is the lower of: (a) the rate worked out under step 5; and (b) the parent's multi‑case cap for the child for the day. Step 9. If there is only one non‑parent carer who has a percentage of care for the child for the day, the parent must pay the annual rate of child support that is payable for the child under step 5 or 8 to the non‑parent carer. If there are 2 non‑parent carers who have a percentage of care for the child for the day, then, subject to section 40B, the parent must pay the annual rate of child support that is payable for the child under step 5 or 8 to the non‑parent carers in accordance with section 40A. Note: Under section 40B, a non‑parent carer of a child is not entitled to be paid child support unless he or she applies under section 25A in relation to the child. Subdivision E—General provisions 40A Cases where there is more than one person entitled to child support (1) If, in applying: (a) subsection 36(4) or 38(5) or (6); or (b) step 9 in the method statement in section 39 or 40; or (c) subsection 65A(5); child support is payable to: (d) a parent and a non‑parent carer of a child; or (e) 2 non‑parent carers of a child; then, the annual rate of child support for the child for a day in the child support period that each parent or non‑parent carer (as the case requires) is, subject to section 40B, entitled to be paid is: Note: Under section 40B, a non‑parent carer of a child is not entitled to be paid child support unless he or she applies under section 25A in relation to the child. (2) In applying subsection (1), even if a non‑parent carer is not entitled to be paid an annual rate of child support because of section 40B, the non‑parent carer's cost percentage is taken into account. 40B Non‑parent carer must have applied for child support (1) A non‑parent carer of a child is not, under section 36, 38, 39, 40, 65A or 66, entitled to be paid an annual rate of child support for the child for a day in a child support period unless the non‑parent carer has made an application under section 25A in relation to the child. (2) If a non‑parent carer is not entitled to be paid child support for a child for a day in a child support period under subsection (1), the annual rate of child support payable by the parent for the child for the day is reduced by the amount that is not payable because of subsection (1). (3) If: (a) a non‑parent carer of a child has not so applied at the time the administrative assessment of child support for the child for the child support period is made; but (b) the non‑parent carer does so during the child support period; then: (c) the non‑parent carer is entitled to be paid an annual rate of child support for the child worked out under this Part from the day on which the non‑parent carer makes the application under section 25A; and (d) despite paragraph 7A(2)(a), a new child support period is not started by that application. 40C Parents with more than 65% care The annual rate of child support payable by a parent for a child for a day in a child support period is nil if: (a) the parent's annual rate of child support for the child is worked out under section 35 or 37 (income of both parents, no non‑parent carer); and (b) the parent's percentage of care determined for the purposes of the administrative assessment of child support for the child is more than 65%. 40D Parents with nil child support percentage The annual rate of child support payable by a parent for a child for a day in a child support period is nil if the parent's child support percentage for the child for the day is nil. Division 3—Child support income Subdivision A—Preliminary 40E Simplified outline The following is a simplified outline of this Division: • The income used in determining a parent's capacity to meet the costs of his or her children might be reduced by the following amounts: (a) the self‑support amount (to take account of the parent's need to support himself or herself); (b) a relevant dependent child amount (if the parent cares for a relevant dependent child or step‑child of the parent); (c) a multi‑case allowance (if the parent has multiple child support cases). • The relevant dependent child amount and the multi‑case allowance take account of the costs of relevant dependent children, and children in other child support cases, in a similar way to the way in which the costs of the children are worked out for children in a child support case. • A parent's adjusted taxable income for a year of income can be reduced under section 44 in respect of a particular child if the parent earns additional income during the first 3 years after separating from the other parent of the child. Subdivision B—Child support income and combined child support income 41 Working out parent's child support income Single child support case—no relevant dependent children (1) If: (a) a parent is to be assessed in respect of the costs of a child in only one child support case; and (b) the parent does not have a relevant dependent child; the parent's child support income for the child for a day in a child support period is the amount worked out using the formula: Single child support case—relevant dependent children (2) If: (a) a parent is to be assessed in respect of the costs of a child (the particular child) in only one child support case; and (b) the parent has at least one relevant dependent child; the parent's child support income for the particular child for a day in a child support period is the amount worked out using the formula: Multiple child support cases—no relevant dependent children (3) If: (a) a parent is to be assessed in respect of the costs of a child (the particular child); and (b) the parent is also to be assessed in respect of the costs of another child in another child support case; and (c) the parent does not have a relevant dependent child; the parent's child support income for the particular child for a day in a child support period is the amount worked out using the formula: Multiple child support cases—relevant dependent children (4) If: (a) a parent is to be assessed in respect of the costs of a child (the particular child); and (b) the parent is also to be assessed in respect of the costs of another child in another child support case; and (c) the parent has at least one relevant dependent child; the parent's child support income for the particular child for a day in a child support period is the amount worked out using the formula: Negative result taken to be nil (5) A parent's child support income for a day in a child support period is taken to be nil if the amount worked out using a formula in this section is negative. 42 Working out parents' combined child support income Work out the parents' combined child support income for a child for a day in a child support period by adding together each parent's child support income for the child for the day. Subdivision C—Working out the components of child support income 43 Working out parent's adjusted taxable income (1) Subject to subsection (2), a parent's adjusted taxable income for a child for a day in a child support period is the total of the following components: (a) the parent's taxable income for the last relevant year of income in relation to the child support period; (b) the parent's reportable fringe benefits total for that year of income; (c) the parent's target foreign income for that year of income; (d) the parent's net rental property loss for that year of income; (e) the total of the tax free pensions or benefits received by that parent in that year of income. Note 1: Other provisions that relate to a person's adjusted taxable income are section 34A and Subdivisions B and C of Division 7. Note 2: The components of the definition of adjusted taxable income are defined in section 5. (2) If the Registrar amends an assessment under section 44, then for the purposes of the assessment, the person's adjusted taxable income for a child to whom the assessment relates, for a day in the child support period, is the amount determined by the Registrar. 44 Post‑separation costs Application for post‑separation income to be excluded (1) A parent (the applicant) of a child may apply to the Registrar to amend an administrative assessment of child support payable by or to the parent for the child for part of a child support period if: (a) the applicant and the other parent of the child lived together on a genuine domestic basis for at least 6 months; and (b) the last separation of the applicant from the other parent before the application for administrative assessment of child support for the child was made under section 25 or 25A occurred within the last 3 years; and (c) at the time of the application under this section, the applicant and the other parent remain separated; and (d) in the last relevant year of income the applicant earned, derived or received income: (i) in accordance with a pattern of earnings, derivation or receipt that was established after the applicant and the other parent first separated; and (ii) that is of a kind that it is reasonable to expect would not have been earned, derived or received in the ordinary course of events. (2) If the applicant makes an application under this section, the Registrar may determine that the applicant's adjusted taxable income for the child for a day in the child support period is a specified amount that excludes the income referred to in paragraph (1)(d). (3) However, the Registrar may make a determination under subsection (2) only if the determination: (a) reduces the applicant's adjusted taxable income for the child for a day in the child support period by 30% or less; and (b) applies in respect of a day in the child support period, being a day that is less than 3 years after the last separation referred to in paragraph (1)(b). Registrar to implement determinations (4) The Registrar is to take such action as is necessary to give effect to the determination by amending any administrative assessment that has been made in relation to the child support period. Notice to be served if Registrar refuses application (5) If the Registrar refuses to make a determination under subsection (2), the Registrar must serve written notice of the decision on the applicant. (6) The notice must include, or be accompanied by, a statement to the effect: (a) that the applicant may, subject to the Registration and Collection Act, object to the particulars of the assessment in relation to which the applicant sought to make the application; and (b) that if the applicant is aggrieved by the decision on the objection, he or she may, subject to that Act, apply to the SSAT for review of the decision. (7) This section does not prevent the Registrar from making a new assessment for part of the child support period. Note: This section does not limit the power under section 75 to amend assessments (see subsection 75(5)). 45 Working out the self‑support amount A parent's self‑support amount for a day in a child support period is: Note: A parent's self‑support amount can be varied by a determination or order under section 98S or 118. 46 Working out parent's relevant dependent child amount A parent's relevant dependent child amount for a day in a child support period is the total of the amounts worked out for each relevant dependent child of the parent using this method statement. Method statement Step 1. Work out the difference between the parent's adjusted taxable income for the child for the day and the parent's self‑support amount for the day (see sections 43 and 45). Step 2. Work out the parent's percentage of care for the child for the day (see section 48). Step 3. Work out the parent's cost percentage for the child for the day (see section 55C). Step 4. Work out the costs of the child for the day (see sections 55G and 55H) as if: (a) the parent's annual rate of child support were assessed under Subdivision D of Division 2; and (b) the reference in subsection 55G(2) to the parent's child support income were a reference to the amount worked out under step 1; and (c) references in sections 55G and 55H to children in the child support case that relates to the child were references to all of the parent's relevant dependent children. Step 5. Work out the following amount for the child for a day in the child support period: Note: Section 73A deals with the Registrar discovering, after making an administrative assessment, that a parent has a relevant dependent child. 47 Working out multi‑case allowances A parent's multi‑case allowance for a child (the particular child) for a day in a child support period is worked out using this method statement. Method statement Step 1. Work out the following amount: Step 2. If the parent has a relevant dependent child, take the parent's relevant dependent child amount (see section 46) for the day from the amount worked out under step 1. Step 3. Work out the costs of the children for the day for all children (the multi‑case children) for whom the parent is assessed in respect of the costs of the child, as if: (a) the parent's annual rate of child support were assessed under Subdivision D of Division 2; and (b) the reference in subsection 55G(2) to the parent's child support income were a reference to the amount worked out under step 1 or 2 (as the case requires); and (c) references in section 55G to children in the child support case that relates to the child were references to all of the parent's multi‑case children. Step 4. Work out the parent's multi‑case child costs for the particular child for the day using the formula: Step 5. The parent's multi‑case allowance for the particular child for the day is the following amount: Division 4—Percentage of care Subdivision A—Preliminary 47A Simplified outline The following is a simplified outline of this Division: • A person's (whether the person is a parent or a non‑parent carer of a child) percentage of care for the child for a day in a child support period is the percentage of care of the child that the person is likely to have during a 12 month period. • A percentage of care for a child is as determined by an oral agreement or a parenting plan made by the parents of the child (or a parent and a non‑parent carer), or as determined by a court order. • The Registrar can make a determination of a person's percentage of care for a child in certain cases (such as if there is no such agreement, plan or order, or if care of the child changes). • A parent's percentage of care for a child is used in section 55C to work out the parent's cost percentage for the child. • A non‑parent carer's percentage of care is used in section 40A to work out how much child support the non‑parent carer is entitled to be paid for the child. 47B Meaning of court order In this Division: court order means: (a) a family violence order within the meaning of section 4 of the Family Law Act 1975; or (b) a parenting order within the meaning of section 64B of the Family Law Act 1975; or (c) a State child order registered in accordance with section 70D of the Family Law Act 1975; or (d) an overseas child order registered in accordance with section 70G of the Family Law Act 1975. Subdivision B—Determining percentages of care 48 Working out percentage of care (1) A person's percentage of care for a child for a day in a child support period is the percentage of care of the child that the person is likely to have during the period (the care period) of 12 months from: (a) the day on which an application is made under section 25 or 25A for a parent to be assessed in respect of the costs of the child; or (b) the day on which the Registrar becomes aware of the following: (i) a change of at least 7.1% in the percentage of care of the child that the person has; (ii) that the person's percentage of care for the child has fallen below 14%; (iii) that the person's percentage of care for the child has increased to 14%, or above 14%. Note: The Registrar is not entitled to amend an administrative assessment in respect of a person's percentage of care unless the Registrar becomes aware of an event mentioned in paragraph (1)(b) (see subsection 75(2)). (2) The percentage of care is to be worked out in accordance with this Subdivision. Note: Generally, a person's percentage of care for a child is worked out based on the number of nights that the child is likely to be in the care of the person during the care period. (3) If a person's percentage of care worked out in accordance with this Subdivision is not a whole percentage: (a) if the percentage is greater than 50%—the percentage is rounded up to the nearest whole percentage; and (b) if the percentage is less than 50%—the percentage is rounded down to the nearest whole percentage. 49 Agreements, parenting plans and court orders may determine percentage of care The percentage (if any) of care of a child that a parent or non‑parent carer is likely to have during a care period is determined in accordance with the following agreement, plan or order if the Registrar is satisfied that the agreement, plan or order allows such a percentage to be determined: (a) if the relevant application for administrative assessment for child support for the child is made under subparagraphs 25A(b)(ii) to (iv) (application by non‑parent carer in relation to one parent): (i) an oral or written agreement, or parenting plan, between the parent and a non‑parent carer of the child that the Registrar is satisfied has been made; or (ii) a court order that relates to the parent and a non‑parent carer of the child, or that relates to the child; (b) otherwise: (i) an oral agreement between the parents of the child that the Registrar is satisfied has been made; or (ii) a parenting plan for the child that has been entered into by the parents; or (iii) a court order that relates to the parents, or that relates to the child. 50 Registrar determinations where no agreement, plan or order (1) The Registrar must determine the percentage (if any) of care of a child that a parent or non‑parent carer of the child is likely to have during the relevant care period if there is no agreement, plan or order that allows such a percentage to be determined under section 49. (2) In making the determination, the Registrar must take into account such period as is required in order for the Registrar to be satisfied that there is, has been, or will be, a pattern of care for the child. (3) The Registrar may revoke or vary a determination made under this section. Subdivision C—Changes to percentages of care 51 Person no longer agrees with oral agreement If: (a) an oral agreement determines, under section 49, a percentage of care of a child that a parent or non‑parent carer is likely to have during a care period; and (b) the Registrar becomes aware that a parent or non‑parent carer of the child no longer agrees with that percentage of care; and (c) immediately before the oral agreement was made, a parenting plan or court order determined the percentage of care of the child that each parent or non‑parent carer would have during the care period; the percentage of care of the child that a parent or non‑parent carer is likely to have during the care period is as determined in accordance with the parenting plan or court order. 52 Interim Registrar determinations where parent or non‑parent carer does not agree with percentages of care (1) The Registrar may determine the percentage (if any) of care of a child that a parent or non‑parent carer of the child is likely to have during the relevant care period if: (a) there is an agreement, plan or order that allows such a percentage to be determined under section 49; and (b) a parent or non‑parent carer of the child does not agree that the care of the child that is actually taking place is in accordance with the percentage so determined; and (c) in the circumstances of the case, the percentage so determined would result in an unjust and inequitable determination of the level of financial support to be provided by a parent for the child; and (d) a parent or non‑parent carer of the child has taken reasonable action: (i) to seek to reach agreement; or (ii) to seek a court order; or (iii) to enforce a court order; about the care of the child; and (e) a parent or non‑parent carer of the child applies for the determination. Note: If the Registrar refuses to make a determination under this section, the Registrar must give the applicant a notice under section 54. (2) In making the determination, the Registrar must take into account such period as is required in order for the Registrar to be satisfied that there is, has been, or will be, a pattern of care for the child. (3) The Registrar may revoke or vary a determination made under this section. (4) Before the end of 6 months after a determination is made under this section, the Registrar: (a) must review the determination; and (b) may make another determination under this section. 53 Registrar determination where parent's care falls below 14% Making a determination (1) The Registrar may determine the percentage (if any) of care of a child that a parent or non‑parent carer is likely to have during a care period if: (a) a parent (the first parent) was to have at least regular care of the child during the relevant care period under an oral agreement, parenting plan or court order; and (b) the first parent has no care, or has a pattern of care that is less than regular care, of the child despite the other parent or a non‑parent carer making the child available to the first parent; and (c) the other parent or a non‑parent carer of the child applies for the determination. Note: If the Registrar refuses to make a determination under this section, the Registrar must give the applicant a notice under section 54. Day on which determination commences (2) The determination must specify, in accordance with subsections (4) and (5), the first day in the child support period to which the determination is to apply. (3) The determination applies to the day specified, and later days in the child support period. (4) If the Registrar is satisfied that the other parent or the non‑parent carer who applied for the determination failed, within a reasonable period, to notify the Registrar that the first parent had no care, or less than regular care, of the child during the relevant care period, the day specified must be the day on which the determination is made. (5) Otherwise, the day specified must be: (a) if the first parent never established a pattern of care in accordance with the oral agreement, parenting plan or court order—the day on which the plan or court order was entered into or made; or (b) if the first parent established a pattern of care in accordance with the oral agreement, parenting plan or court order, but later ceased the established pattern of care—the day on which the parent ceased the previously established pattern. (6) To avoid doubt, a parent never establishes a pattern of care if: (a) the parent could not have established the pattern of care until a particular period that occurs later in the child support period; and (b) the parent does not establish that pattern during that particular period. (7) The Registrar may revoke or vary a determination made under this section. Registrar to make determination under this section (and not interim determination) (8) If the Registrar could make a determination under section 52 and this section in respect of the percentage of care for a child, the Registrar must make a determination under this section and not section 52. 54 Notice to be served if Registrar refuses application (1) If the Registrar refuses to make a determination under section 52 or 53, the Registrar must serve written notice of the decision on the person who made the application. (2) The notice must include, or be accompanied by, a statement to the effect: (a) that the person may, subject to the Registration and Collection Act, object to the particulars of the assessment in relation to which the person sought to make the application; and (b) that if the person is aggrieved by the decision on the objection, he or she may, subject to that Act, apply to the SSAT for review of the decision. Subdivision D—Where there is more than one agreement, plan, order or determination 55 Where there is more than one agreement, plan, order or determination (1) If more than one agreement, plan, order or determination applies, under section 49, 50, 52 or 53, to a day in a child support period, then the percentage of care of a child that a parent or non‑parent carer is likely to have during the care period is as determined by the most recent agreement, plan, order or determination. (2) However, the most recent agreement, plan or determination is subject to any court order made in respect of the percentage of care of a child that specifies that the order cannot be altered by agreement between the persons in respect of whom the order is made. Division 5—Working out other elements for the formulas Subdivision A—Preliminary 55A Simplified outline The following is a simplified outline of this Division: • A parent's income percentage represents the parent's capacity to meet the costs of the child. • A parent's cost percentage represents the extent to which the parent is taken to have met the costs of the child through care. • A parent's child support percentage is the difference between the parent's income percentage and his or her cost percentage. Generally, if the parent has a positive child support percentage, the annual rate of child support payable by the parent is that percentage of the costs of the child. • If a parent has multiple child support cases, the annual rate of child support payable by the parent for a child is capped by the parent's multi‑case cap for the child. Subdivision B—Working out other elements for the formulas 55B Working out income percentages Work out each parent's income percentage for a child for a day in a child support period using the formula (worked out to 2 decimal places, rounding up if the third decimal place is 5 or more): 55C Working out cost percentages A parent's or non‑parent carer's cost percentage for a child for a day in a child support period is the percentage worked out using the table based on the parent's or non‑parent carer's (as the case requires) percentage of care for the child for the day. Cost percentages Item Column 1 Column 2 Percentage of care Cost percentage 1 0 to less than 14% Nil 2 14% to less than 35% 24% 3 35% to less than 48% 25% plus 2% for each percentage point over 35% 4 48% to 52% 50% 5 more than 52% to 65% 51% plus 2% for each percentage point over 53% 6 more than 65% to 86% 76% 7 more than 86% to 100% 100% 55D Working out child support percentages (1) Work out each parent's child support percentage for a child for a day in the child support period using the formula: (2) A parent's child support percentage for a day in a child support period is taken to be nil if the amount worked out using the formula is negative. 55E Working out the multi‑case cap (1) Work out a parent's multi‑case cap for a child (the particular child) for a day in a child support period in accordance with subsection (2) if: (a) the parent's annual rate of child support for the particular child is assessed for the day under section 37, 38, 39 or 40; and (b) if section 37 or 38 applies—the parent has a positive child support percentage for the particular child under step 6 of the method statement in section 35; and (c) in any case—the parent is assessed for the day in respect of the costs of another child who is in another child support case. (2) The parent's multi‑case cap for the particular child for the day is worked out using the formula: Division 6—The costs of the child Subdivision A—Preliminary 55F Simplified outline The following is a simplified outline of this Division: • The costs of the children are worked out using the rules in this Division and the Costs of the Children Table in Schedule 1. • The costs of the children are based on the number of children in a child support case and the ages of those children. • The costs of the child are the costs of the children divided by the number of children in the child support case. • The Costs of the Children Table is updated every year to reflect changes to the annualised MTAWE figure. Subdivision B—The costs of the child 55G Working out the costs of the children (1) If an annual rate of child support for a day in a child support period is assessed for a child under section 35, 36, 37 or 38 (Formulas 1 to 4), identify the column in the Costs of the Children Table for that child support period that covers the combined child support income of the parents of the child. Note: The Secretary publishes the updated Costs of the Children Table in the Gazette each year for child support periods that begin in the next year (see section 155). (2) If an annual rate of child support for a day in a child support period is assessed for a child under Subdivision D of Division 2 (Formulas 5 and 6), identify the column in the Costs of the Children Table for that child support period that covers the child support income of the parent of the child. Note: This subsection also applies in working out the relevant dependent child amount and the multi‑case allowance (see step 4 of the method statement in section 46 and step 3 of the method statement in section 47). (3) Identify the number of children (the child support children) in the child support case that relates to the child. (4) Identify the ages of the child support children at the time the administrative assessment is made. If there are more than 3 child support children, use the ages of the 3 oldest children. (5) Identify the item in the relevant column in the Costs of the Children Table that covers that number of child support children of those ages. (6) The amount worked out for the item in accordance with Schedule 1 to this Act is the costs of the children. 55H Working out the costs of the child The costs of a child for a day in a child support period is: (a) if there is only one child support child—the costs of the children; and (b) otherwise—the costs of the children divided by the number of child support children. Division 7—Assessments and estimates of adjusted taxable income Subdivision A—Preliminary 55J Simplified outline The following is a simplified outline of this Division: • A parent's taxable income is generally the amount of taxable income that is assessed under an Income Tax Assessment Act. • The Registrar might make a determination of a parent's adjusted taxable income if the parent has not lodged a tax return. • There are limits on the Registrar's ability to amend an assessment for past periods if the parent later lodges his or her tax return. • A parent can estimate the amount of his or her adjusted taxable income for days in a child support period. Subdivision B—Adjusted taxable income determined by reference to taxable income for last relevant year of income 56 Taxable income is as assessed under Income Tax Assessment Act Meaning of taxable income (1) For the purposes of assessing a parent in respect of the costs of a child in relation to a child support period, if the parent's taxable income has been assessed under an Income Tax Assessment Act for the last relevant year of income in relation to the child support period, the parent's taxable income for that year is the amount as so assessed. Note: Sections 34A and 57 are also relevant to a person's taxable income. When amended tax assessment may be taken into account (2) If, after an administrative assessment of child support is made, the assessment (the tax assessment) of a parent's taxable income is amended (whether or not because of an objection, appeal or review), the Registrar must not amend the administrative assessment to take account of the amendment to the tax assessment unless one of the following applies: (a) the amendment to the tax assessment is made under item 5 of the table in subsection 170(1) of the Income Tax Assessment Act 1936 (amendment due to fraud or evasion); (b) the amendment to the tax assessment is made under provisions of an Income Tax Assessment Act that are prescribed by the regulations for the purposes of this paragraph; (c) the amendment is made in circumstances prescribed for the purposes of this paragraph; (d) the amendment is made solely for the purposes of working out the parent's adjusted taxable income for the last relevant year of income for the purposes of subsection 60(3) of this Act (first estimate must be lower than adjusted taxable income). Date of assessment of a parent's taxable income taken to be date of notice of the assessment (3) For the purposes of this section, if: (a) notice of an assessment (including an amended assessment) of a parent's taxable income under an Income Tax Assessment Act has been served on the parent under the Income Tax Assessment Act 1936; and (b) the notice is dated; then the assessment is taken to have been made on the date of the notice. Section not to affect determinations, court orders or consent orders (4) This section does not prevent: (a) the Registrar from making any determination under Part 6A (departure determinations); or (b) a court from making any order under Division 4 of Part 7 (departure orders); or (c) the making, and acceptance by the Registrar, of a child support agreement that includes provisions that have effect for the purposes of this Part as if they were such an order made by consent. 57 Taxable income for child support purposes where taxable income determined to be nil under Income Tax Assessment Act (1) This section does not apply to a parent for a year of income if the parent has a component of adjusted taxable income mentioned in paragraphs 43(1)(b) to (e) for the year of income. Determinations that taxable income nil or no tax payable (2) A parent's taxable income for a year of income is nil if the parent's taxable income for that year has been determined to be nil under an Income Tax Assessment Act. (3) A parent's taxable income for a year of income is also nil if: (a) the Commissioner has determined under an Income Tax Assessment Act that no tax was payable (before the allowance of any rebate or credit) under that Act on the parent's taxable income for the year of income; and (b) either of the following subparagraphs applies in relation to the person: (i) Part 1 of Schedule 7 to the Income Tax Rates Act 1986 (or any other law prescribed by the regulations for the purposes of this paragraph in relation to the year of income) applied in relation to the parent for the year of income; (ii) no tax would have been payable (before the allowance of any rebate or credit) under that Act by the person on his or her taxable income if Part 1 of Schedule 7 to the Income Tax Rates Act 1986 (or any other law prescribed by the regulations for the purposes of this paragraph in relation to the year of income) had applied in relation to the parent for the year of income. (4) Subsections (2) and (3) do not apply in relation to an administrative assessment made in relation to a parent if: (a) before the administrative assessment is made; but (b) after the most relevant notice mentioned in subsection (5) or (6) is made; an assessment is issued under the Income Tax Assessment Act 1936 of the person's taxable income for the year of income under an Income Tax Assessment Act. Notices issued under the Income Tax Assessment Act 1936 (5) If a parent has been served a notice under the Income Tax Assessment Act 1936 to the effect that the taxable income of the parent under an Income Tax Assessment Act for a year of income is nil, then: (a) the parent's taxable income for tha