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CHILD SUPPORT LEGISLATION AMENDMENT (REFORM OF THE CHILD SUPPORT SCHEME--INITIAL MEASURES) ACT 2006 - SCHEDULE 3

Earning capacity of a parent of a child

 

Child Support (Assessment) Act 1989

1   Subparagraph 117(2)(c)(i)

Omit "either parent or".

Note 1:   The following heading to subsection 117(1) is inserted " Court may make departure order ".

Note 2:   The following heading to subsection 117(2) is inserted " Grounds for departure order ".

2   After subparagraph 117(2)(c)(i)

Insert:

  (ia)   because of the income, property and financial resources of either parent; or

  (ib)   because of the earning capacity of either parent; or

Note:   The following heading to subsection 117(3) is inserted " High costs involved in enabling parent to have contact with child ".

Note:   The following heading to subsection 117(3A) is inserted " High child care costs ".

4   Paragraph 117(4)(d)

Omit "earning capacity,".

Note:   The following heading to subsection 117(4) is inserted " Matters to consider for purposes of subparagraph   (1)(b)(ii) ".

5   After paragraph 117(4)(d)

Insert:

  (da)   the earning capacity of each parent who is a party to the proceeding; and

Note:   The following heading to subsection 117(6) is inserted " Matters to consider for purposes of paragraph   (4)(b) ".

6   Subsection 117(7)

Omit "or a parent of the child".

Note:   The following heading to subsection 117(7) is inserted " Matters to consider for purposes of paragraph   (4)(c) ".

7   Paragraph 117(7)(a)

Omit "or parent" (wherever occurring).

8   After subsection 117(7)

Insert:

Matters to consider for purposes of paragraph   (4)(d)

  (7A)   In having regard to the income, property and financial resources of a parent of the child, the court must:

  (a)   have regard to the capacity of the parent to derive income, including any assets of, under the control of, or held for the benefit of, the parent that do not produce, but are capable of producing, income; and

  (b)   disregard:

  (i)   the income, earning capacity, property and financial resources of any person who does not have a duty to maintain the child, or who has such a duty but is not a party to the proceeding, unless, in the special circumstances of the case, the court considers that it is appropriate to have regard to them; and

  (ii)   any entitlement of the child or the carer entitled to child support to an income tested pension, allowance or benefit.

Determinations in respect of paragraph   (4)(da)

  (7B)   In having regard to the earning capacity of a parent of the child, the court may determine that the parent's earning capacity is greater than is reflected in his or her income for the purposes of this Act only if the court is satisfied that:

  (a)   one or more of the following applies:

  (i)   the parent does not work despite ample opportunity to do so;

  (ii)   the parent has reduced the number of hours per week of his or her employment or other work below the normal number of hours per week that constitutes full - time work for the occupation or industry in which the parent is employed or otherwise engaged;

  (iii)   the parent has changed his or her occupation, industry or working pattern; and

  (b)   the parent's decision not to work, to reduce the number of hours, or to change his or her occupation, industry or working pattern, is not justified on the basis of:

  (i)   the parent's caring responsibilities; or

  (ii)   the parent's state of health; and

  (c)   the parent has not demonstrated that it was not a major purpose of that decision to affect the administrative assessment of child support in relation to the child.

Note 1:   The following heading to subsection 117(8) is inserted " Matters to consider for purposes of paragraph   (4)(f) ".

Note 2:   The following heading to subsection 117(9) is inserted " Subsections not to limit consideration of other matters ".

9   Subsection 124(3)

After "(7)", insert ", (7A)".

10   After subsection 124(3)

Insert:

  (3A)   In having regard to the earning capacity of a parent of the child under paragraph 117(4)(da), the court may determine that the parent's earning capacity is greater than is reflected in his or her income for the purposes of this Act only if the court is satisfied as mentioned in subsection 117(7B).

11   Subsection 124(5)

After "(3)", insert ", (3A)".

12   Subsection 125(5)

After "(7)", insert ", (7A)".

13   After subsection 125(5)

Insert:

  (5A)   In having regard to the earning capacity of a parent of the child under paragraph 117(4)(da), the court may determine that the parent's earning capacity is greater than is reflected in his or her income for the purposes of this Act only if the court is satisfied as mentioned in subsection 117(7B).

14   Subsection 125(7)

After "(5)", insert ", (5A)".

15   Subsection 129(5)

After "(7)", insert ", (7A)".

16   After subsection 129(5)

Insert:

  (5A)   In having regard to the earning capacity of a parent of the child under paragraph 117(4)(da), the court may determine that the parent's earning capacity is greater than is reflected in his or her income for the purposes of this Act only if the court is satisfied as mentioned in subsection 117(7B).

17   Subsection 129(7)

After "(5)", insert ", (5A)".

18   Application

The amendments made by this Schedule apply in relation to:

  (a)   decisions made by the Registrar under Division   2 of Part   6A on or after the day on which this Schedule commences; and

  (b)   determinations made by the Registrar under Division   3 of Part   6A on or after the day on which this Schedule commences; and

  (c)   decisions made by the Registrar under Division   5 of Part   6A on or after the day on which this Schedule commences; and

  (d)   decisions made by a court under Division   4 or 5 of Part   7 on or after the day on which this Schedule commences.




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