Commonwealth Numbered Acts Commonwealth Numbered Acts
Child Support (Assessment) Act 1989
1 Subsection 5(1)
Insert:
"ATI indexation factor" has the meaning given by subsection 58AA(1).
2 At the end of section 5A
Add:
(5) If:
(a) the Australian Statistician publishes the amount (the later amount ) referred to in subsection (1) for a relevant September quarter; and
(b) the later amount is published in substitution for such an amount for that quarter that was previously published by the Australian Statistician;
the publication of the later amount is to be disregarded for the purposes of this Act.
3 Section 55J
Omit:
• The Registrar might make a determination of a parent's adjusted taxable income if the parent has not lodged a tax return.
substitute:
• The Registrar may determine a parent's adjusted taxable income in certain circumstances.
4 Subdivision B of Division 7 of Part 5 (heading)
Repeal the heading, substitute:
Subdivision B -- Adjusted taxable income determined by reference to taxable income etc.
5 Section 58
Repeal the section, substitute:
58 Determination by the Registrar of a parent's adjusted taxable income
(1) This section applies if a parent is to be assessed in respect of the costs of a child in relation to a child support period and either of the following apply:
(a) the parent's taxable income for the last relevant year of income in relation to the period has not been assessed under an Income Tax Assessment Act;
(b) the Registrar is unable to ascertain whether or not the parent's taxable income for that year has been so assessed.
Information or document in the possession of the Registrar etc.
(2) If:
(a) the Registrar or the Commissioner of Taxation has information (whether oral or written) or a document in his or her possession; and
(b) either:
(i) an amount is specified in that information or document as the parent's adjusted taxable income for the last relevant year of income; or
(ii) that information or document allows the amount of the parent's adjusted taxable income for the last relevant year of income to be worked out; and
(c) the Registrar is satisfied that the specified amount, or the amount so worked out, is a reasonable approximation of the parent's adjusted taxable income for that year;
the Registrar may determine that the specified amount, or the amount so worked out, is the parent's adjusted taxable income for that year.
Parent's taxable income assessed for the previous year of income
(3) If:
(a) the parent's taxable income for a year of income has been assessed under an Income Tax Assessment Act; and
(b) that year (the previous year ) is the year of income before the last relevant year of income;
the Registrar may determine that the parent's adjusted taxable income for the last relevant year of income is the amount worked out by multiplying the parent's adjusted taxable income for the previous year by the ATI indexation factor.
Parent's taxable income assessed for an earlier year of income
(4) If:
(a) the parent's taxable income for the previous year has not been assessed under an Income Tax Assessment Act; but
(b) the parent's taxable income for an earlier year of income has been so assessed;
the Registrar may determine that the parent's adjusted taxable income for the last relevant year of income is the greater of the following amounts:
(c) the amount worked out by multiplying the parent's adjusted taxable income for the earlier year of income (or, if the parent's taxable income has been so assessed for more than one earlier year of income, the most recent of those years) by the ATI indexation factor;
(d) the amount that is equal to two-thirds of the annualised MTAWE figure for the relevant September quarter in relation to the child support period.
Other circumstances
(5) If:
(a) subsections (2), (3) and (4) do not apply in relation to the parent; or
(b) the Registrar decides not to make a determination in relation to the parent under one of those subsections;
the Registrar may determine that the parent's adjusted taxable income for the last relevant year of income is an amount that is at least two-thirds of the annualised MTAWE figure for the relevant September quarter in relation to the child support period.
58AA ATI indexation factor for determinations under section 58
(1) The ATI indexation factor is:
where:
"AWE amount" for a September quarter of a year of income means the amount published for the reference period in the quarter by the Australian Statistician in a document titled "Average Weekly Earnings, Australia" (or, if that title changes, in a replacement document) under the headings "Average Weekly Earnings--Trend--Persons--All employees total earnings" (or, if any of those headings change, under any replacement headings).
"reference period" in a September quarter of a year of income means the period described by the Australian Statistician as the last pay period ending on or before the third Friday of the middle month of the quarter.
"September quarter" of a year of income means the quarter ending on 30 September of that year.
"tax return year" means:
(a) if subsection 58(3) applies--the year of income before the last relevant year of income in relation to a child support period; or
(b) if subsection 58(4) applies--the earlier year of income that applies under paragraph 58(4)(c).
(2) The ATI indexation factor is to be calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
(3) If:
(a) the Australian Statistician publishes an AWE amount (the later amount ) for a September quarter of a year of income; and
(b) the later amount is published in substitution for an AWE amount for that quarter that was previously published by the Australian Statistician;
the publication of the later amount is to be disregarded for the purposes of this section.
6 Section 150C
Repeal the section.
7 After subsection 155(2)
Insert:
(2A) Before the end of each calendar year, the Secretary must publish in the Gazette the AWE amount (within the meaning of subsection 58AA(1)) for the quarter ending on 30 September of that year.
8 Subsection 155(3)
Omit "and (2)", substitute ", (2) and (2A)".
9 Application--subsection 5A(5) of the Child Support (Assessment) Act 1989
Subsection 5A(5) of the Child Support (Assessment) Act 1989 , as inserted by this Schedule, applies in relation to the amount referred to in subsection 5A(1) of that Act that is published before or after the commencement of this item.
10 Application--subsection 58AA(3) of the Child Support (Assessment) Act 1989
Subsection 58AA(3) of the Child Support (Assessment) Act 1989 , as inserted by this Schedule, applies in relation to an AWE amount (within the meaning of subsection 58AA(1) of that Act, as inserted by this Schedule) that is published before or after the commencement of this item.
11 Saving provision
If:
(a) a determination was made under section 58 of the Child Support (Assessment) Act 1989 before the commencement of this item; and
(b) the determination was in force immediately before that commencement;
the determination has effect, after that commencement, as if it had been made under section 58 of that Act as inserted by this Schedule.
