Child support reforms 'unfair'

Commentary from MRA:

Canberra Times article "Child support reforms 'unfair'"

Some of the child support reforms brought in last year, were supposed to relieve a little of the financial pressure on paying parents and ensure they had some input into how the maintenance was spent by allowing them to claim up to 25% of the periodic maintenance as direct payments to a third party for the benefit of their children.

These amounts claimed did not need the approval of the other parent.

The change was welcomed, but we are now seeing the unfair limitations that the Child Support Agency have imposed by regulation on the number of items that can be claimed.

According to their website at http://www.csa.gov.au/legal/page4.htm the list includes the following items:

fees charged at the school or pre-school of the eligible child

essential medical and dental fees

payee rent, including bond

payee rates, including body corporate charges

payee mortgage

payee utilities

payee child care costs and

payee motor vehicle costs including registration, insurance, service, tyres, repairs and panel beating.

One could be forgiven for thinking this regulation has become more of an effort to support the payee parent than the children directly.

We find it strange that the the Department of Social Security Policy and Legislation guidelines show a far more extensive list than that allowed under the CSA.

DSS uses the list to calculate non-cash payments given to a parent . The monetary value is then used to reduce the amount the government has to pay in 'family allowance'. So it is obviously acceptable to have a large extensive list, when it saves the government money, but not so when the paying parent might find some relief. Yet the same 'family allowance' that is reduced under the DSS list is the same one that is reduced according to the amount paid by the paying parent .
List of items that may be used as non-cash maintenance for the purpose of reducing family allowance payments, according to DSS.

food
clothing
household items
rent
mortgage payments
free lodging
health insurance
medical expenses
loan repayments
credit card and store account repayments
child care fees
school and tuition fees
general expenses
sporting club fees
sporting costs including, equipment, associated travel and accommodation costs, coaching fees
travel or holiday expenses
utility bills, ie electricity, gas telephone, heating
rates, ie council, water, sewerage
motor vehicle expenses; and
household repairs.

You can view and download the scanned version of this DSS page. Click here and use your back button to return.

We have it on good authority that Robin Poke, the spokesperson for CSA, who was quoted in the Canberra Times article was quite put out and said that if he known "he was dealing with MRA then he would have given different answers". Really!

We'll be fascinated to find out the answers he would have given and why!

Ed, MRA

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