The Reformed Australian Child Support Scheme

Abstract

The Australian child support reforms were introduced in two stages between mid-1988 and late 1989. The first stage sought to increase the collection and payment of money due by reason of a court order, by establishing the Child Support Agency within the Taxation Office. This agency assumes responsibility for locating missing liable parents and, where possible, withdraws the amount owed from the salaries of liable parents. The second stage uses the collection and payment mechanisms established under Stage 1 and also assesses amounts due administratively by applying a formula that takes account of parental taxable income and the number of children for whom there is a support liability. Results of an evaluation of the first stage of the scheme are discussed. Although single-parent poverty will not be resolved by measures such as those initiated by the Australian government, the evidence is that amounts awarded under Stage 1 are higher than they were prior to the introduction of the reforms and that administrative assessment under Stage 2 is yielding higher amounts.