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2008
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER
LEGISLATION AMENDMENT
(FURTHER 2008 BUDGET AND OTHER MEASURES) BILL 2008
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Families, Housing, Community Services and Indigenous Affairs,
the Hon Jenny Macklin MP)
FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER
LEGISLATION AMENDMENT
(FURTHER 2008 BUDGET AND OTHER MEASURES) BILL 2008
OUTLINE
This bill will provide for certain further Budget measures and other non-
Budget measures, as described below.
Maternity immunisation allowance
The bill will make amendments for better alignment of maternity
immunisation allowance with the National Immunisation Program by paying the
allowance in two payments for children who meet the 18 month and four year-
old immunisation requirements. It will also extend eligibility for the
allowance to children adopted from outside Australia who enter Australia
before turning 16 and who are immunised appropriately after arrival, and
make minor modifications to the rules for determining entitlement to the
allowance.
Partner service pension
Amendments to the Veterans' Entitlements' Act 1986 will give effect to the
2008-09 Budget measure to cease eligibility for partner service pension for
those partners who are separated but not divorced from their veteran
spouse, and who have not reached age pension age. Further amendments will
set the eligible age at 50 years for partner service pension for the
partner of a veteran who is in receipt of the equivalent of or less than
special rate but above general rate disability pension or who has at least
80 impairment points under the Military Rehabilitation and Compensation Act
2004.
Child support
The bill will make minor amendments to the child support legislation,
notably to address anomalies in relation to the child support formula
reforms that commenced on 1 July 2008.
Financial impact statement
|Total resourcing |2008-09 |2009-10 |2010-11 |2011-12 |
|Maternity |- $12.3 m |- $31.3 m |- $31.8 m |- $6.5 m |
|immunisation | | | | |
|allowance | | | | |
|Partner service | | | | |
|pension: |- $4.0 m |- $10.6 m |- $12.1 m |- $13.9 m |
|- separated but not | | | | |
|divorced* |$0.1 m |$0.2 m |$0. 4 m |$0.5 m |
|- eligible age | | | | |
| | | | | |
|* Estimate only - | | | | |
|final costing yet to | | | | |
|be agreed with | | | | |
|Department of Finance| | | | |
|and Deregulation | | | | |
|Child support |nil |nil |nil |nil |
FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER
LEGISLATION AMENDMENT
(FURTHER 2008 BUDGET AND OTHER MEASURES) BILL 2008
NOTES ON CLAUSES
Clause 1 sets out how the Act is to be cited, that is, the Families,
Housing, Community Services and Indigenous Affairs and Other Legislation
Amendment (Further 2008 Budget and Other Measures) Act 2008.
Clause 2 provides a table that sets out the commencement dates of the
various sections in, and Schedules to, the Act.
Clause 3 provides that each Act that is specified in a Schedule is amended
or repealed as set out in that Schedule.
Schedule 1 - Maternity immunisation allowance
Summary
This Schedule will make amendments for better alignment of maternity
immunisation allowance (MIA) with the National Immunisation Program by
paying the allowance in two payments for children who meet the 18 month and
four year-old immunisation requirements. The Schedule will also extend
eligibility for the allowance to children adopted from outside Australia
who enter Australia before turning 16 and who are immunised appropriately
after arrival, and make minor modifications to the rules for determining
entitlement to the allowance.
In this Schedule, the A New Tax System (Family Assistance) Act 1999 is
referred to as 'the Family Assistance Act', and the A New Tax System
(Family Assistance) (Administration) Act 1999 as 'the Family Assistance
Administration Act'.
Background
MIA in two payments
Current eligibility for MIA is limited to children up to the age of two,
and, once eligibility is established, MIA is paid only once. This measure
will result in two half payments of MIA being available for children up to
the age of five. An additional category will allow eligibility for a
payment of MIA to arise when a child is between four and five years of age.
For a child who is alive four years after birth, and meets the
immunisation requirements between the ages of four and five, eligibility
for MIA will arise, provided the child is an FTB child of the individual
claiming MIA at the date the immunisation requirements are met, and the
individual is eligible for family tax benefit in respect of the child, or
would be so eligible except that their rate of family tax benefit is nil.
MIA eligibility for children adopted from outside Australia
Adoption
Children born outside Australia may be adopted prior to entering Australia.
Alternatively, it may happen that the adoption is not yet completed and
the child arrives in Australia as part of the process of adoption. The
eligibility rules for MIA for adopted children who are born outside
Australia are being broadened. For eligibility for MIA to arise in respect
of a child, the child must be born outside Australia, be entrusted to the
care of the person adopting the child by an authorised party, and arrive in
Australia (with an exception in the case of the death of a child), while
under the age of 16. The adoption may occur under the law of any place.
The time at which eligibility will arise
For parity with Australian-born children, eligibility for MIA for children
adopted from overseas is dealt with in two groupings, based upon whether
the child arrived in Australia on or before the day of their 3rd birthday
('younger overseas adopted children'), or on any day after their 3rd
birthday but before they turn 16 ('older overseas adopted children').
For current MIA, an initial timeframe of 18 months from the child's birth
is allowed for the basic schedule of immunisations to be completed. For
similar reasons, eligibility for MIA for the group of younger overseas
adopted children cannot arise before the child reaches the age of 18
months. The immunisation requirements set out in section 6 of the Family
Assistance Act may then be met at any time until the child turns four. For
this group, the second period of eligibility also covering Australian-born
children for a second half payment of MIA between ages four and five will
apply, provided immunisation requirements are met prior to the child
turning five. Death of the child up to age five will similarly be covered
by the provisions also covering Australian-born children.
For older overseas adopted children, the child must meet the immunisation
requirements set out in section 6 of the Family Assistance Act within the
last six months of the period of two years beginning on the day of their
arrival in Australia. If the child dies without meeting the immunisation
requirements either prior to entering Australia but after being entrusted
into the care of the person adopting the child by an authorised party, or
within two years of their arrival in Australia, eligibility for MIA may
arise at the date of the child's death if the other requirements are
satisfied.
FTB child
In order to be eligible for MIA currently, the relevant child must be an
FTB child of the individual claiming MIA. However, for older overseas
adopted children (and children adopted from overseas who die prior to
reaching Australia), some factors which would prevent the child being an
FTB child for MIA purposes are excluded. The child may be an FTB child
despite the fact they are not undertaking full-time study or have income
beyond the cut-off amount for FTB purposes. The child may also be an FTB
child despite the fact they or someone on their behalf is receiving social
security payments or payments under a prescribed educational scheme.
Eligible for family tax benefit
In order to be eligible for MIA, the individual claiming MIA must be
eligible for family tax benefit in respect of the FTB child adopted from
overseas. As for current MIA, the individual will be taken to be eligible
for family tax benefit in respect of the child despite the fact their rate
of family tax benefit is nil.
Rate of MIA
Currently, MIA is a single payment. However, after the present amendments
to MIA, half the current rate will be payable in respect of a child aged
under two, or in respect of a younger overseas adopted child before age
four. Additionally, the amount of MIA paid will be half the total rate of
MIA where a child dies under age five, and a half amount of MIA has already
been paid in respect of the child. The rate of MIA will be calculated on
the date the Secretary's determination that MIA is payable is made.
An exception to the payment of only half rate applies where MIA eligibility
is claimed for a child between ages four and five, and no previous half
payment of MIA has been made in respect of the child. In this case, the
amount of MIA is the full rate.
MIA paid in respect of an older overseas adopted child will be the full
rate of MIA.
Eligibility for MIA in respect of children under age four may arise under a
number of provisions. Where a half amount of MIA has been paid in respect
of a child while the child is under four (whether under the domestic or
overseas adoption-related eligibility provisions) no further half amount
under those provisions may be paid. A further half amount may become
payable under the provisions relating to children aged four or more.
Overall, no more than two half payments or one full payment of MIA may be
made in respect of a child.
MIA claim periods
The periods set out in the Family Assistance Administration Act within
which an effective claim for MIA may be made will generally match the
period during which eligibility for the payment may be established. Claims
upon the death of a child must be made by the later of two years from the
date of death, or five years after the birth of the child. For a stillborn
child, the existing two-year period from delivery during which a valid
claim may be made is extended to five years.
Date of determination of MIA claim
This amendment expands the circumstances in which the determination of a
claim for MIA must be delayed. The Secretary must hold a claim for
determination at a later date if, at the time the claim is made, the
claimant is not eligible for MIA, but the child is an FTB child of the
claimant, and the claimant is eligible for family tax benefit in respect of
the child, disregarding rate. (The definition of FTB child is modified for
this purpose for older overseas adopted children, as set out above at 'FTB
child'.)
The claim is held either until the date the claimant becomes eligible for
MIA, or to the last date at which eligibility for MIA could be established,
based upon the category of MIA eligibility claimed.
Transition
The new category of eligibility for MIA for children between ages four and
five will be available at commencement to all children, regardless of their
date of birth, provided MIA has not already been paid in respect of the
child prior to commencement. MIA in respect of a child who dies aged under
five will apply to deaths occurring on or after commencement.
Where a child adopted from overseas arrived in Australia on or after
1 July 2006 and before 1 January 2009, the claimant will have until
31 December 2010 to establish eligibility for, and claim, MIA, and will be
entitled to be paid one full rate of MIA. Where the child dies overseas,
provided the death occurred from 1 July 2006 to before 1 January 2009, and
after the child had been entrusted into the care of the adoptive parent,
MIA eligibility may be established and claimed up to 31 December 2010.
Where a child adopted from overseas arrived in Australia on or after
1 July 2006 and before 1 January 2009, and the child dies prior to
1 January 2011, the claimant will have up to the later of 31 December 2010
or two years from the death of the child to claim.
Where a claim for MIA in respect of a child under two was made prior to
commencement but has not been determined at commencement, the determination
will be made on the basis of the new provisions, including the provisions
as to rate. For such claimants, a second claim for MIA in respect of the
child between ages four and five is deemed to have been made on
1 January 2009, in order to allow eligibility for the full amount of MIA to
be eventually established.
The amendments made by this Schedule commence on 1 January 2009.
Explanation of the changes
Amendments to the Family Assistance Act
Item 1 amends subsection 39(1) to replace three cases of eligibility for
MIA with reference to seven cases. The heading to the subsection is
replaced by the heading 'Usual case'.
Item 2 inserts a new subsection 39(2A) described above under 'MIA in two
payments', providing for the eligibility for MIA of children aged between
four and five.
Item 3 substitutes 'third' for 'second' in subsection 39(3), now providing
for the third category of eligibility for MIA (in relation to stillborn
children).
Item 4 substitutes 'fourth' for 'third' in subsection 39(4), now providing
for the fourth category of eligibility for MIA (where the child dies within
two years of birth).
Item 5 substitutes a maximum age of five for age two in subsection 39(4) to
extend eligibility for MIA to a child who dies under age five.
Item 6 adds to section 39 new subsections (5) to (10), described above
under 'MIA eligibility for children adopted from outside Australia'. New
subsection 39(5) covers younger overseas adopted children. New
subsection 39(6) covers older overseas adopted children, with eligibility
established if either of new subsections 39(7) and (8) is met.
Subsection 39(7) deals with eligibility of older overseas adopted children
who are alive within two years of their arrival in Australia, and
subsection 39(8) deals with the death of an older overseas adopted child
within two years of arrival in Australia. Subsection 39(9) provides for
MIA eligibility upon the death of a child overseas aged under 16, after
being entrusted into the care of a person adopting the child, but prior to
the child arriving in Australia. Subsection 39(10) modifies the definition
of FTB child for the purposes of paragraphs 39(7)(b), (8)(a) and (b), and
9(f).
Item 7 amends section 67 to move into new subsection 67(1) the current
words providing for the total rate of MIA.
Item 8 makes the amendments to section 67 described above at the heading
'Rate of MIA'. New subsections 67(2), (3), (4) and (5) are inserted. New
paragraph 67(2)(a) provides for a half rate of MIA in respect of children
between ages 18 months and two years, children between ages four and five
and younger overseas adopted children. New paragraph 67(2)(b) provides for
a half rate of MIA in respect of the death of a child under five, where a
half rate of MIA has already been determined to be paid in respect of the
child either between ages 18 months and two years, or as a younger overseas
adopted child.
Subsection 67(3) provides for a full rate of MIA to be payable in respect
of a child between ages four and five where no previous half payment of MIA
has been determined.
Subsection 67(4) limits the amount of MIA payable in respect of a child to
one payment of MIA under subsection 67(1) or two half payments of MIA under
subsection 67(2).
Subsection 67(5) prevents duplicate eligibility for MIA arising in relation
to subsections 39(2) and (5), which both potentially cover children under
age two.
Item 9 amends section 68 to extend sharing of MIA to the new categories of
eligibility for MIA (apart from those dealing with the death of a child).
Amendments to the Family Assistance Administration Act
Item 10 repeals and replaces subsection 39(4) of the Family Assistance
Administration Act, making the amendments described above at 'MIA claim
periods'.
Item 11 repeals and replaces subsections 41(5) and (6), as described above
at 'Date of determination of MIA claim'. New subsection 41(7) modifies the
definition of FTB child for the purposes of section 41 for claims in
relation to older overseas adopted children.
Application and transitional provisions
Items 12, 13 and 14 deal with the matters described above at 'Transition'.
Item 12 deals with transition in relation to eligibility for MIA. Subitem
12(1) applies the new category of eligibility for children between ages
four and five to children born before commencement, provided that no
determination that MIA is payable has been made in respect of the child.
Subitem 12(2) provides that MIA eligibility in respect of the death of a
child under five applies where the death occurs on or after commencement.
Subitem 12(3) applies the eligibility provisions for younger overseas
adopted children and older overseas adopted children to arrivals in
Australia occurring on or after 1 July 2006, regardless of when the process
for adoption commenced.
Subitem 12(4) applies eligibility in respect of living younger overseas
adopted children to those children who arrived between 1 July 2006 and
1 January 2009, and allows the immunisation requirements to be met up to
1 January 2011.
Subitem 12(5) expands the coverage of subsection 39(6) for transitional
purposes to include the death of a younger overseas adopted child who
arrived in Australia on or after 1 July 2006 but prior to 1 January 2009.
Subitems 12(6) and (7) apply eligibility for older overseas adopted
children to children who arrived in Australia on or after 1 July 2006 and
before 1 January 2009, provided the immunisation requirements are met
before 1 January 2011, or the child dies before 1 January 2011. As a
result of subitem 12(5) above, eligibility will also arise for the death of
a younger overseas adopted child prior to 1 January 2011 who arrived
between 1 July 2006 and 1 January 2009.
Subitem 12(8) applies subsection 39(9) to children adopted from overseas in
respect of deaths overseas occurring on or after 1 July 2006.
Item 13 deals with transition and application of the amount of MIA payable
upon eligibility being established, either by an individual claimant, or in
respect of a substitute individual claimant under section 40 of the Family
Assistance Act upon the death of the original claimant prior to payment of
MIA. Subitem 13(1) applies paragraph 67(2)(a), relating to payment of a
half rate of MIA in relation to a child aged between 18 months and two
years, to claims made before commencement which had not been determined by
the Secretary at commencement, and to claims on or after commencement.
Subitem 13(2) provides for a full rate of MIA to be paid in respect of
eligibility established for live younger overseas adopted children who
arrived on a day before 1 January 2009, and ensures that only one such
payment of MIA may be made in respect of such a child.
Subitem 13(3) makes it clear that, where MIA was determined to be paid in
respect of a child prior to commencement, no further amount is to be paid
in respect of the child after commencement.
Item 14 deals with transition and application in relation to claims for
MIA. Subitem 14(1) deems a person who has made a claim for MIA prior to
commencement, which has not been determined at commencement, to have made
an additional claim for MIA on 1 January 2009 in respect of the child
between ages four and five.
Subitem 14(2) extends the period within which an effective claim can be
made to before 1 January 2011 for overseas adopted children (whether
younger or older) who arrived before 1 January 2009, or who died overseas
before 1 January 2009.
Subitem 14(3) applies the changed timeframes for making an effective claim
for MIA to claims made after commencement.
Subitem 14(4) applies the changed rules for deferral of determinations of
claims to claims made after commencement, or claims made before
commencement which have not been determined before commencement.
Schedule 2 - Partner service pension
Summary
These amendments to the Veterans' Entitlements' Act 1986 (Veterans'
Entitlements' Act) will give effect to the 2008-09 Budget measure to cease
eligibility for partner service pension for those partners who are
separated but not divorced from their veteran spouse, and who have not
reached age pension age. Under this measure, eligibility for partner
service pension will cease 12 months after separation or immediately if the
veteran enters into a marriage-like relationship. (Following the enactment
of the Same-Sex Relationships (Equal Treatment in Commonwealth Laws -
General Law Reform) Bill 2008, references to 'marriage-like' relationship
will be replaced with 'de facto' relationship.)
Also included in Schedule 2 are amendments that will set the eligible age
at 50 years for partner service pension for the partner of a veteran who is
in receipt of the equivalent of or less than special rate but above general
rate disability pension or who has at least 80 impairment points under the
Military Rehabilitation and Compensation Act 2004 (Military Rehabilitation
and Compensation Act). Additional amendments in the Schedule make minor
changes to the Veterans' Entitlements Act consequent upon the enactment of
the Same-Sex Relationships (Equal Treatment in Commonwealth Laws - General
Law Reform) Bill 2008.
Background
A partner service pension is payable under the Veterans' Entitlements Act
to the eligible partner of a veteran who is in receipt of, or is eligible
to receive, a service pension. A partner service pension can also be paid
to the separated spouse or the widow or widower of a veteran in certain
circumstances.
The Families, Housing, Community Services and Indigenous Affairs and Other
Legislation Amendment (2008 Budget and Other Measures) Act 2008 gave effect
to the 2008 Budget measure which increased the eligible age for partner
service pension from age 50 to qualifying age with effect from 1 July 2008.
Qualifying age for females is 58.5 years and for males is 60 years.
(Female qualifying age is subject to age equalisation and is gradually
being increased to age 60.)
Partner service pension is also payable, regardless of age, if the eligible
partner has a dependent child or is the partner of a veteran in receipt of
either a special rate disability pension under the Veterans' Entitlements
Act or a Special Rate Disability Pension under the Military Rehabilitation
and Compensation Act.
Explanation of the changes
The amendments to be made by Part 1 of the Schedule will set 50 years of
age as the eligible age for partner service pension for partners of
veterans who are in receipt of the equivalent of or less than special rate
but above general rate disability pension under the Veterans' Entitlements
Act or who have been assessed at 80 or more impairment points under the
Military Rehabilitation and Compensation Act. The Veterans' Entitlements
Act disability pension rates affected by this measure are:
. general rate disability pension that is increased by an amount
specified in any of the items 1 to 6 of the table in subsection 27(1),
. extreme disablement adjustment disability pension;
. intermediate rate disability pension; and
. temporary special rate disability pension.
The amendments made by Part 2 will result in partner service pension
recipients who separate from, but do not divorce their veteran partner,
losing eligibility for the partner service pension in certain
circumstances. Partner service pension recipients who are separated, but
not divorced from their veteran partner are defined as a 'non-illness
separated spouse'.
Under the existing provisions, a non-illness separated spouse loses
eligibility for partner service pension if they enter into a marriage-like
relationship.
These amendments will extend the circumstances under which a person who is
the 'non-illness separated spouse' of a veteran and who is under pension
age will lose eligibility for partner service pension. The new
circumstances are, 12 months after the date of separation, or from the date
from which the veteran partner enters into a marriage-like relationship.
If the person is under pension age, eligibility for partner service pension
will cease from whichever event occurs first. If a person is over pension
age, the only circumstance under which eligibility for partner service
pension would cease under this measure is the person entering into a
marriage-like relationship.
The amendments made by Part 3 are consequential amendments that result
from proposed changes to the Veterans' Entitlements Act to be made by the
Same-Sex Relationships (Equal Treatment in Commonwealth Laws - General Law
Reform) Bill 2008 to replace references to 'marriage-like' relationships
with the common term 'de facto' which is to be used from 1 July 2009.
Part 1 - Amendments commencing on Royal Assent
Setting eligible age for partner service pension
Item 1 repeals paragraphs 38(1B)(a) and (b) and inserts new
paragraphs 38(1B)(a), (b) and (c).
New paragraph 38(1B)(a) provides that, subject to subsection 38(1C) and
(1D), a person is not eligible for partner service pension unless the
person has a dependent child at the time the person makes the claim for
partner service pension.
New paragraph 38(1B)(b) provides that, subject to subsection 38(1C) and
(1D), if new subsection 38(1BA) applies to a person, the person is eligible
for partner service pension if the person has reached 50 years of age.
New paragraph 38(1B)(c) provides that, if a person is a person to whom
paragraph 38(1B)(a) or (b) does not apply, a person must have reached
qualifying age to be eligible for partner service pension.
Item 2 inserts new subsection 38(1BA).
New subsection 38(1BA) will be applicable only to those persons who are
eligible for partner service pension under paragraph 38(1)(a) or (f).
Under these paragraphs, the person must be a member of a couple.
New subsection 38(1BA) provides that the subsection applies to a person who
is eligible for partner service pension under either paragraph 38(1)(a) or
(f) and who is the partner of a veteran in receipt of:
. disability pension at the extreme disablement rate under
subsection 22(4); or
. disability pension at the intermediate rate under section 23; or
. disability pension at the temporary special rate under section 25; or
. general rate disability pension that is increased by an item described
in items 1 to 6 of the table in subsection 27(1).
New subsection 38(1BA) also provides that the subsection applies to a
person who is eligible for partner service pension under either paragraph
38(1)(a) or (f) and who is the partner of a veteran whom the Military
Rehabilitation and Compensation Commission has determined suffers an
impairment that constitutes at least 80 impairment points.
Item 3 is an application provision which provides that the amendments made
by items 1 and 2 will apply in relation to claims for partner service
pension made on or after the commencement of the items.
Part 2 - Amendments commencing on 1 January 2009
Veterans' Entitlements Act 1986
Item 4 amends subsection 38(1) to remove the reference to the provisions of
the subsection being subject to the provisions of subsections '(1B) and
(4)' and replacing that reference with a reference to the subsection being
subject to the provisions of 'this section'.
Item 5 inserts new subsections 38(2AA), (2AB) and (2AC). The new
subsections are applicable to those persons who are eligible for a partner
service pension under paragraph 38(1)(b) or (g). These paragraphs apply to
a person who is a non-illness separated spouse.
A 'non-illness separated spouse' is defined in subsection 5E(1) as being a
person who is legally married to another person but living separately and
apart from that other person on a permanent basis. The definition does not
include those persons determined as being members of 'an illness separated
couple' as a result of a direction made under subsection 5R(5).
New paragraph 38(2AA)(a) provides that a person's eligibility for partner
service pension will cease if, in the Commission's opinion, the person's
veteran spouse is in a marriage-like relationship with another person when
this subsection commences. The subsection is expected to commence on
1 January 2009.
New paragraph 38(2AA)(b) provides that a person's eligibility for partner
service pension will cease if, at any time after this subsection commences,
the person's veteran spouse enters into a relationship with another person
and in the Commission's opinion that relationship is a marriage-like
relationship.
New subsection 38(2AB) provides that a non-illness separated spouse's
eligibility for partner service pension will cease 12 months after the
person began living separately and apart from the veteran on a permanent
basis.
New subsection 38(2AC) provides that the eligibility of the non-illness
separated spouse will not cease under either subsection 38(2AA) or (2AB) if
the non-illness separated spouse is of pension age (as defined under
section 5Q).
Item 6 is a consequential amendment to paragraph 38(2B)(c) to include a
reference to new subsections 38(2AA) and (2AB).
Subsection 38(2B) had provided that the non-illness separated spouse of a
deceased veteran will not become eligible for partner service pension under
paragraphs 38(1)(c), (d), (h) or (i) if, immediately before the veteran's
death, the spouse was not eligible for the pension under the provisions of
subsection 38(2A). Subsection 38(2B) will now provide that the non-illness
separated spouse of a deceased veteran will not become eligible for partner
service pension under paragraph 38(1)(c), (d), (h) or (i) after the death
of the veteran if, prior to the veteran's death, the spouse was not
eligible for the pension because the spouse had entered into a marriage-
like relationship, the veteran had entered into a marriage-like
relationship, or the veteran and spouse had been separated for more than 12
months.
Item 7 is an application provision, which provides that new
subsection 38(2AB) (as inserted by item 5 of this Schedule) will be
applicable to a person living separately and apart from a veteran before,
on or after the commencement of the application provision.
However, in the circumstances where the period of separation of 12 months
that is referred to in new subsection 38(2AB) has ended prior to the
commencement of the application provision, the eligibility of the separated
spouse under paragraph 38(1)(b) or (g) will not cease until the
commencement of the application provision.
This means that, if a non-illness separated spouse in receipt of partner
service pension has been separated for more than 12 months as at
1 January 2009, their eligibility will cease on 1 January 2009, but not
before.
The note to the application provision refers to the eligibility of the
person not being lost under subsection 38(1) if the person has reached
pension age as provided for under new subsection 38(2AC).
Part 3 - Amendments commencing on the same-sex start day
Items 8 to 11 make consequential amendments to subsection 38(2AA) (inserted
by item 5 of this Schedule).
These amendments are required as a result of the amendments being made to
the Veterans' Entitlements Act by the Same-Sex Relationships (Equal
Treatment in Commonwealth Laws - General Law Reform) Bill 2008.
Included in the bill are amendments to section 11A and various other
sections to replace references to a 'marriage-like relationship' with
references to a 'de facto relationship'.
Item 8 amends paragraph 38(2AA)(a) to replace the reference to 'marriage-
like' with a reference to 'de facto'.
Item 9 replaces the words 'when this subsection commenced' in
paragraph 38(2AA)(a) with a reference to 'on the same-sex start day'.
Item 10 replaces the reference to after 'this subsection commenced' in
paragraph 38(2AA)(b) with a reference to after 'the same-sex start day'.
Item 11 amends paragraph 38(2AA)(b) to replace the reference to 'marriage-
like' with a reference to 'de facto'.
Item 12 inserts new subsection 38(5).
New subsection 38(5) defines the term 'same-sex start day' as being the day
on which Schedule 15 to the Same-Sex Relationships (Equal Treatment in
Commonwealth Laws - General Law Reform) Act 2008 commences.
It is expected that this Schedule will commence from 1 July 2009.
Item 13 is a saving provision, which provides that the amendments to be
made by Part 3 of this Schedule will not affect the operation of
subsection 38(2AA) as in force before the commencement of this Part.
Schedule 3 - Child support
Summary
This Schedule will make minor amendments to the child support legislation,
notably to address anomalies in relation to the child support formula
reforms that commenced on 1 July 2008.
Background
This Schedule is set out in seven Parts, which deal with amendments in the
general subject areas outlined below. Each Part has its own commencement
date, set out at the end of each of the descriptions of the content of the
Part. The commencement of some Parts is delayed to the day 28 days after
Royal Assent for service delivery reasons, to allow for necessary
implementation changes to computer systems and forms, and for staff
training to take place.
In this Schedule, the Child Support (Assessment) Act 1989 is referred to as
'the Assessment Act', and the Child Support (Registration and Collection)
Act 1988 as 'the Registration and Collection Act'.
Part 1 - Percentage of care
A number of changes will be made to provisions of the Assessment Act in
existence from 1 July 2008 that enable the Registrar to determine a new
care period for the purpose of calculating a percentage of care.
Amendments will mean that a change in percentage of care of less than
7.1 per cent which is brought about by a new or varied agreement, plan or
order as to care, will be able to be reflected in the child support
assessment. This allows for the recognition of a change in care where it
arises by one of these mechanisms in which the parents have agreed to the
change in care. This amendment ensures that, where parents come to a new
agreement or obtain a new order about the care of a child, that care can be
reflected in the child support assessment.
A new care period will commence and a new percentage of care will be able
to be calculated where a person's percentage of care has increased to, or
risen above 35 per cent or fallen below 35 per cent.
In instances where there is a change in care greater than 7.1 per cent but
where there may not be a change in the annual rate of child support payable
for the child, no new cost percentage may currently be reflected in the
assessment. This situation may arise, for example, in situations where the
child support payable is set by a change of assessment decision, by
agreement, by court order, or because the person's assessment is set at the
fixed annual rate or minimum annual rate. In these situations, a change in
care may not give rise to a change in the annual rate payable. Amendments
will allow for a change of at least 7.1 per cent in the percentage of care
for a child to be reflected in the assessment if the change alters the
person's cost percentage for the child, rather than requiring that the
change in care alters the child support payable. This will mean that,
where there is a later amendment to the assessment, child support
assessments may more accurately reflect the percentage of care of each
parent.
Amendments will change the date of effect of a change in a person's
percentage of care, so that, in circumstances in which the Registrar
becomes aware of a change in a reasonable timeframe, care arrangements can
be reflected from the date the care changed. Where the Registrar is
notified, or otherwise becomes aware, of a change in care within 28 days,
the Registrar will be able to reflect the change on the assessment with a
date of effect from the date the event occurred. Where the Registrar is
not notified or does not become aware of the change within 28 days, the
change will take effect from the date that the Registrar is notified or
otherwise becomes aware of the event. In circumstances in which there is
no clear date from which care changed, the Registrar will continue to be
able to reflect the change from the date of notification of, or becoming
aware of, the change.
Ongoing determinations of care by the Registrar
Section 52 of the Assessment Act allows the Registrar to make a
determination of a parent's percentage of care in some circumstances where
care is not occurring as ordered by a court or agreed by the parents. The
Registrar must review, and may remake, such a determination every six
months, during which time the parents and any non-parent carer are expected
to take reasonable action to attempt to resolve the care situation. In
some circumstances, such as domestic violence, where one parent is unable
to be located or where one parent has undertaken a long-term, long-distance
relocation, it is unlikely reasonable action can be taken which will allow
care to be calculated on a different basis. Amendments are made which will
allow the Registrar not to review a determination if satisfied there are
special circumstances which justify the Registrar in not doing so.
This Part commences on the 28th day after Royal Assent.
Part 2 - Publication of reasons for decisions of the Social Security
Appeals Tribunal
Since 1 January 2007, internal review decisions of the Registrar have been
reviewable by the Social Security Appeals Tribunal ('the SSAT'). The SSAT
is required to provide the reasons for its decision to the parties to the
review, which include the Registrar. It was anticipated that de-identified
decisions of the SSAT would be published, and provision was made for such
publication not to be a breach of the restriction on the publication of
review proceedings imposed by section 110X of the Registration and
Collection Act. However, additional amendment of the secrecy provisions is
required to allow this to occur.
The secrecy provisions will be amended to provide that the SSAT will not be
prevented from communicating the reasons for its decision to the Secretary,
or a person authorised by the Secretary. Similarly, the Secretary will not
be prevented from communicating the reasons for a decision to a person
authorised to undertake publication. The authorised person will not be
prevented from publishing such reasons in de-identified form. The
Secretary is likely to authorise the publication of SSAT child support
decisions by particular bodies, such as universities, which already
undertake publication and analysis of Tribunal decisions in other related
fields, including social security and family assistance, or other
interested legal publishers.
De-identification of the published reasons will be sufficient to ensure the
privacy of a party or witness to the proceedings.
This Part commences on the day after Royal Assent.
Part 3 - Departure from assessments
High child care costs
The Assessment Act provides a mechanism for a parent to apply to the
Registrar or a court for a child support assessment to be amended. There
are specific grounds for departure from an assessment set out in
subsection 117(2). One of these grounds is that the costs of maintaining
the child are significantly affected because of high child care costs in
relation to the child. Currently, this ground may only apply to a carer
parent. Amendments will allow this ground of departure to apply to either
parent.
Further changes will also allow a non-parent carer to seek departure on the
basis of high child care costs. For non-parent carers, costs of child care
will be considered high where the cost of child care is at least 25 per
cent of the costs of the child for that period. This new test, specific to
non-parent carers, is necessary because the existing test determines
whether a parent's child care costs are high by reference to a percentage
of a parent's adjusted taxable income. A non-parent carer, unlike a
parent, is not required to provide income details for child support
purposes. The existing test in subsection 117(3B) will remain, but will
only apply to parents who apply for this ground of departure.
Reaching agreement during a change of assessment
Part 6A of the Assessment Act allows for administrative departure from
formula assessment of child support upon application to the Registrar by a
party to the assessment. This process is known as a change of assessment.
Prior to 1 July 2008, parents could finalise their change of assessment by
reaching an agreement, and seeking that the Registrar accept the agreement.
The capacity for the Registrar to accept such an agreement was
unintentionally removed from 1 July 2008, and amendments are now being made
to restore this capacity.
An agreement made during the change of assessment process without legal
advice will be required to meet all requirements for a limited child
support agreement, save the requirement that the agreement represent a rate
of child support which is at least that of the formula assessment. The
Registrar will accept such an agreement where he or she considers it is
just and equitable as regards the child, the liable parent and the carer
entitled to child support to do so. The requirement that the agreement
also be otherwise proper will be repealed because, under the scheme
reforms, the Registrar will make a notional assessment of the child support
payable as though no agreement had been accepted as the basis for the
payment of family tax benefit to the parties. Once accepted, an agreement
made without legal advice will otherwise be regarded as meeting the
definition of a limited child support agreement for the purposes of the
Assessment Act.
Setting aside an agreement
A party to a child support agreement may apply to a court to set aside the
agreement in some circumstances. A party to an agreement accepted during
the change of assessment process will similarly be able to apply to a court
for the agreement to be set aside.
Varying a provisional notional assessment
A parent may currently seek to vary a provisional notional assessment made
because of the acceptance of an agreement by seeking an administrative
departure from the provisional notional assessment. Where the agreement in
question is accepted by the Registrar during the change of assessment
process, the initial application for a change of assessment will then be
treated as though it were an application for departure in relation to the
provisional notional assessment.
This Part commences on the 28th day after Royal Assent.
Part 4 - Terminating events
In conflict with the new child support formula, which provides for the
assessment of child support regardless of with whom the children live from
time to time, the legislation still provides for an administrative
assessment to end where the person who is the carer entitled to child
support for a child ceases to be an eligible carer of that child.
Amendments will remove this terminating event, and continue the assessment
where the child's care continues to be provided by either of the parents or
any non-parent carer who is a party to the assessment and entitled to child
support. However, where both parents cease to provide care for the child,
and the child is not cared for by a non-parent carer who is a party to the
assessment, the administrative assessment of child support for the child
will end.
This Part commences on the 28th day after Royal Assent.
Part 5 - Reducing rate of child support under minimum annual rate
assessments
In circumstances in which a parent is paying the minimum annual rate under
section 66 of the Assessment Act, section 66A allows the Registrar to
reduce an assessment to nil. The parent's application must satisfy the
Registrar that the parent's income for the 12-month period starting on the
day on which the parent applies is less than the total of the number of the
parent's child support cases multiplied by the minimum annual rate of child
support for the child support period, before the Registrar may grant the
reduction application.
Amendments to section 66A will mean that, instead of the Registrar
considering a parent's income for a 12-month period, a parent may nominate
either the whole, or a part, of a child support period and apply to have
the assessment varied to nil for the nominated period, providing the person
nominates a minimum period of two months. The applicant will need to
provide income details for the period for which the person is applying.
The person will need to demonstrate that their income for the nominated
period is lower than the total number of the parent's child support cases
multiplied by the minimum annual rate of child support for the child
support period, for the nominated period.
This Part commences on the 28th day after Royal Assent.
Part 6 - Overseas liabilities
Reflecting overseas liabilities in Australian child support assessments
The new child support formula provisions do not in all cases reflect the
fact parents may have additional liabilities under an administrative
assessment in a reciprocating jurisdiction. Amendments are being made to
ensure that, for the purposes of formula calculation of child support,
parents with such overseas liabilities are generally treated as 'multi-
case' parents, and their overseas children for whom they are liable are
included amongst the total of the children for whom they pay child support.
Currently, only New Zealand administrative child support assessments will
be affected, but the provisions will cover any other reciprocating
jurisdiction which commences an administrative scheme of assessing child
support.
Departure prohibition orders to enforce payment of overseas maintenance
liabilities
Recent amendments during the child support scheme reform process moved into
the primary child support legislation provisions previously contained in
regulations relating to overseas maintenance arrangements, including
allowing various means for the Registrar to enforce administratively
payment of such liabilities. However, provision was not made for the
Registrar to undertake enforcement of such liabilities by issuing a
departure prohibition order ('DPO') against the payer of the liability.
Amendments will include most overseas maintenance liabilities amongst the
liabilities which the Registrar may enforce by issuing a DPO. As for
domestic cases, the enforcement of overseas spousal maintenance liabilities
or penalties will not be included.
This Part commences on the day after Royal Assent.
Part 7 - Crediting prescribed payments
Provision currently exists for payments by a parent liable to pay child
support to the payee directly, or to a third party, to be credited as child
support under the Registration and Collection Act. Where the payment is of
a type prescribed in the regulations, the consent of the payee of the child
support assessment to the credit in substitution for payment to the
Registrar is not required. Examples of prescribed payments include
payments of school fees or necessary medical expenses for the child.
From 1 July 2008, credit of a prescribed payment as child support is
prohibited where, at the time the credit is to occur, the paying parent has
at least regular care of the child or children. Similarly, from 1 July
2008, credit of a prescribed payment is prohibited where the payer and
payee have a lump sum arrangement, where the payer has provided child
support to the payee of the liability in the form of a lump sum payment,
and such a payment is being credited against the amount payable under the
liability. These amendments extend these restrictions so that credit of a
prescribed payment is not available where, at the time the prescribed
payment was made by the payer, the payer either had a lump sum arrangement
with the payee, or had at least regular care of the child or children.
This Part commences on the 28th day after Royal Assent.
Explanation of the changes
Part 1 - Percentage of care
Item 1 repeals and replaces existing paragraph 48(1)(b) of the Assessment
Act. New subparagraphs 48(1)(b)(i) to 48(1)(b)(viii) will be inserted,
which will make a number of changes to the criteria that give rise to a new
care period commencing and a new percentage of care for a day in a child
support period being calculated. New subparagraph 48(1)(b)(i) will allow a
new care period to commence, and a new percentage of care to be calculated,
when there is a change in care of less than 7.1 per cent in the percentage
of the care for the child that the person has because of a new or varied
agreement, plan or order mentioned in paragraph 49(a) or (b).
Item 3 is a consequential amendment that amends paragraph 74A(b) by
inserting new subparagraph 74A(b)(ia). This new subparagraph provides that
the date of effect of a decision by the Registrar to change a percentage of
care brought about by new subparagraph 48(1)(b)(i) will be consistent with
the date of effect of changes to the percentage of care brought about by
the other events described in section 48.
Item 8 is a consequential amendment, inserting new subparagraph 75(2)(aa)
that will allow the Registrar to amend an assessment where there is a
change in a person's percentage of care of less than 7.1 per cent, which is
brought about by an agreement, plan, or order mentioned in paragraph 49(a)
or (b).
New paragraph 48(1)(b)(ii) inserted by item 1 will allow a change in the
care level to be reflected in a person's assessment where there is a change
of at least 7.1 per cent and the change in care impacts on the person's
cost percentage for the child (worked out under section 55C), rather than
requiring that such a change have an impact on the child support payable in
relation to the child.
Item 4 is consequential upon the insertion of new paragraph 48(1)(b)(ii) by
item 1. Item 4 amends subparagraph 74(b)(i) that allows the Registrar to
give effect to a change in care of at least 7.1 per cent, which impacts on
a person's cost percentage for a child. This change will make the date of
effect of changes brought about by events described in new paragraph
48(1)(b)(ii) consistent with the date of effect of changes to the
percentage of care brought about by the other events described in section
48.
Item 9 is consequential upon new subparagraph 48(1)(b)(ii) and will amend
paragraph 75(2)(a) so that the Registrar may amend an administrative
assessment in circumstances in which a change in the percentage of care
alters a person's cost percentage for the child.
New subparagraphs 48(1)(b)(v) and (vi) (inserted by item 1) will allow a
new care period to commence and a new percentage of care to be calculated
where a person's percentage of care has increased to, or risen above, or
fallen below, 35 per cent. Consequential amendments have also been made,
which insert new subparagraphs 48(1)(b)(iii) and (iv).
Subparagraph 48(1)(b)(iii) has the same effect as previous
subparagraph 48(1)(b)(ii) and subparagraph 48(1)(b)(iv) has the same effect
as previous subparagraph 48(1)(b)(iii).
Items 5 and 6 make a consequential amendment to subparagraph 74A(b)(iii)
and insert new subparagraphs 74A(b)(iv) and (v), which will make the date
of effect of changes in care brought about by a change of the kind
described in new subparagraphs 48(1)(b)(iv), (v) and (vi) consistent with
changes brought about by the other events in subsection 48(1).
Item 10 is consequential to the insertion of new subparagraphs 48(1)(b)(v)
and (vi) and will allow the Registrar to amend an assessment when a
person's percentage of care falls below 35 per cent, or rises above 35 per
cent.
New paragraph 48(b)(vii) (inserted by item 1) will mean that, where the
Registrar is advised or otherwise becomes aware of a change in the level of
care ('an event') within 28 days of the event occurring, the change in care
can be reflected in the assessment from the date the event occurred.
Subparagraph 48(b)(viii) provides that, where the Registrar does not become
aware of a change in care within 28 days of the change, the change in care
will be reflected in the assessment from the date that the Registrar is
notified.
Item 7 is a consequential amendment that will amend section 74A to allow
the Registrar to change an administrative assessment with a date of effect
consistent with new subparagraph 48(b)(vii).
Item 11 provides that the changes in this Part (except item 2) apply in
relation to changes in percentages of care that occur on or after 1 July
2008, although, where an amendment is made as the result of a change
occurring before commencement, the amendment cannot take effect earlier
than commencement.
Item 2 inserts additional subsection 52(5), providing a discretion for the
Registrar not to review a determination described above at 'Ongoing
determinations of care by the Registrar'. Item 11 provides that item 2
applies to determinations made on or after commencement
Part 2 - Publication of reasons for decisions of the Social Security
Appeals Tribunal
Items 12 and 13 make the amendments described above at 'Publication of
reasons for decisions of the Social Security Appeals Tribunal'. Item 12
inserts new subsections 16(2AA), (2AB) and (2AC). Subsection 16(2AA)
provides for the exception from subsection 16(2) for communication of the
reasons for a decision of the SSAT by the SSAT to the Secretary or a person
authorised by the Secretary, and by the Secretary to a person authorised.
Subsection 16(2AB) authorises publication. Subsection 16(2AC) details the
circumstances in which a publication is taken to identify a person. Item
13 provides for the amendments to apply to decisions of the SSAT,
regardless of when the decision was made. Given the de-identified nature
of the information for this purpose, there will be no adverse effect.
Part 3 - Departure from assessments
Items 14, 16 and 17 make the amendments described above at 'Reaching
agreement during a change of assessment'. Item 14 repeals and replaces
paragraph 80E(1)(d) to extend the definition of limited agreement to
agreements accepted by the Registrar under section 98U. Item 16 inserts
new subsection 98(1A), directing the Registrar to disregard the rate
comparison provisions of section 80E when deciding whether an agreement is
a limited child support agreement for the purposes of subsection 98(1).
Item 17 repeals and replaces subsection 98U(2) to substitute a just and
equitable test for whether the Registrar should accept a limited child
support agreement in these cases.
Item 24 inserts into paragraph 136(1)(a) reference to an agreement accepted
under section 98U, as described at 'Setting aside an agreement' above.
Item 25 adds subsection 146D(3), giving effect to the amendment described
at 'Varying a provisional notional assessment' above.
Item 26 provides that the above amendments in this Part apply to requests
to the Registrar for acceptance of agreements made after commencement,
regardless of the date upon which the agreement was made. The amendments
relating to 'Setting aside an agreement' will apply to agreements, whether
accepted before or after commencement, thus reinstating the position in
existence before 1 July 2008, as described above.
Items 15 and 18 to 24 make the amendments described above at 'High child
care costs'. Paragraph 117(2)(b) of the Assessment Act provides that the
court may consider as a ground for departure from the administrative
assessment for child support, that, in the special circumstances of the
case, the costs of maintaining the child are significantly affected because
of one of the factors listed under paragraph 117(2)(b). Subparagraph
117(2)(b)(ib) provides that one of these circumstances is high child care
costs in relation to the child.
Item 18 removes the phrase 'the carer entitled to child support' and
substitutes the phrase 'a parent or non-parent carer' in paragraph
117(3A)(a) in order to allow either parent to apply for a change of
assessment on this ground. Items 19, 20 and 22 are consequential to item
18.
Item 21 inserts the phrase 'for a parent' after 'care costs' in
subsection 117(3B) so that this test for what the court may consider to be
high child care costs is restricted to parents.
Item 23 inserts a new subsection 117(3C), which will provide that costs of
child care for a non-parent carer can only be high for the purpose of
applying for a change of assessment if the costs equate to 25 per cent of
the costs of the child for that period. Item 15 is consequential to this
amendment.
Item 26 provides that the amendments made by items 18 to 23 apply in
relation to applications to a court made on or after the commencement of
those items. The amendments apply to applications to the Registrar for
departure made on or after commencement.
Part 4 - Terminating events
Items 27 and 28 make the amendments described above at 'Terminating
events'. Item 27 repeals and replaces subsection 12(2) of the Assessment
Act to remove the existing terminating event relating to ceasing care.
Item 28 inserts new subsection 12(2AA), creating the new terminating event.
Item 29 provides that the amendments apply in relation to child support
terminating events which happen on or after commencement.
Part 5 - Reducing rate of child support under minimum annual rate
assessments
Item 30 repeals subsections 66A(1), (2) and (3) and substitutes new
subsections 66A(1), (2), (3), (3A), (3B) and (3C).
New subsection 66A(1) provides that, where the Registrar has made an
assessment under section 66 (minimum annual rate), a parent may apply for
an assessment to be varied to nil for the whole, or a portion, of a child
support period (provided that this nominated period is for a minimum of two
months). Subsection 66A(2) provides for the income comparison the
Registrar must undertake in deciding whether to grant the application. The
test is met if the figure resulting from subsection 66A(3) is less than the
figure resulting from subsection 66A(3A).
The parent's annualised income for the period must be less than the total
of the number of the parent's child support cases multiplied by the minimum
annual rate of child support for the nominated part of the child support
period.
Subsection 16(3B) is inserted as a result of the amendments in Part 6, to
ensure that the earlier commencement date of the Part 6 amendments is not
overridden by the later commencement date of Part 5.
Subsection 66A(3C) provides that a reduction under subsection 66A(1) has no
effect in relation to a day to which the assessment under section 66 does
not apply.
Item 31 provides that the amendment in item 30 applies in relation to
applications made on or after the commencement of that item, and in
relation to a part of a child support period that begins on or after the
day of commencement. It ensures that, where a reduction under subsection
66A(1) has already taken place for a child support period which continues
beyond commencement, new subsection 66A(1) does not apply to that child
support period.
Item 31(4) makes amendments relating to Part 6 - Overseas liabilities,
because Part 6 makes amendments to section 66A, and commences prior to this
Part, and the amendment would otherwise be reversed by this Part.
Part 6 - Overseas liabilities
Items 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48
and 49 make the amendments described above at 'Reflecting overseas
liabilities in Australian child support assessments'.
Items 33 and 41 insert new subsection 35D(2) and subsection 41(6),
providing that section 35D and subsections 41(1) or (2) do not apply where
a parent is liable to pay child support for a child under an administrative
assessment under the law of a reciprocating jurisdiction.
Items 35, 37, 39, 41, 43, 44 and 46 amend various provisions to provide for
circumstances in which a parent is to be taken to be assessed for the day
in respect of the costs of a child in another child support case if they
are liable to pay child support for one or more children for a day under an
administrative assessment under the law of a reciprocating jurisdiction.
Items 47 and 48 provide for circumstances in which a parent is to be taken
to have a child support case if the parent is liable to pay child support
for one or more children under an administrative assessment under the law
of a reciprocating jurisdiction.
Items 32, 34, 36, 38 and 40 are consequential amendments.
Item 54 provides for the application of these amendments, covering
registrable overseas maintenance liabilities, regardless of when made, and
allowing the Registrar to amend assessments to reflect the changes made by
this Part from commencement of the Part.
Items 50, 51, 52 and 53 make the amendments described above at 'Departure
Prohibition Orders to enforce payment of overseas maintenance liabilities'.
Items 50 and 51 include registrable overseas maintenance liabilities within
the coverage of section 72D. Item 53 extends the definition of 'child
support liability' in section 72E.
Item 54 provides that the amendments apply to registrable maintenance
liabilities, regardless of the date they arise.
Part 7 - Crediting prescribed payments
Items 55, 56 and 57 make the amendments described above at 'Circumstances
in which payments otherwise than to the Registrar may be credited as child
support'.
Item 55 inserts new paragraph 71C(1)(ba), relating to the payer's care of
the children, such that subsection 71C(1) only applies to affect the
crediting of those payments made while the payer does not have at least
regular care of any of the children to whom the relevant administrative
assessment relates. Item 56 inserts subsection 71C(2), providing that
subsection 71C(1) does not apply where a lump sum payment arrangement
exists before the prescribed payment is made, and the lump sum payment has
or will be credited in relation to the day the prescribed payment is made.
Item 57 applies the amendments to payments made on or after commencement.