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Following a long and tedious battle on behalf of non-custodial parents around the country Member for Hume Alby Schultz is now celebrating the Australian Government’s decision to implement significant changes to the Child Support Scheme and sweeping organisational change within the Child Support Agency.
The Government has announced the major overhaul of the Child Support Scheme in response to the report of the Ministerial Taskforce on Child Support, chaired by Professor Patrick Parkinson.
It has also announced a $150 million package over four years to address administrative issues within the Child Support Agency.
“I am absolutely delighted that the Government has finally recognised the seriousness of the child support flaws which have been crippling Australian families for years and has taken steps to address the problem,” Mr Schultz said.
Under the new Child Support Scheme:
· child support payments will be calculated based on the actual costs of children
· the combined income of both parents will be used to calculate child support payments, treating the incomes of both parents in the same way
· both parents’ contributions to the cost of their children through care and contact will be recognised, and
· children of first and second families will be treated more equally.
“These changes are significant and will require extensive legislative changes,” Mr Schultz said.
“This unfortunately means that the new Child Support Scheme will be introduced in three stages over a two-year period.
“The first stage, beginning in July this year, will see an increase in the minimum payment from $5 to $6 a week to keep pace with inflation. There will also be a reduction in the maximum amount of child support payable by high income earners to ensure payments are better aligned with the actual costs of children. There will also be fairer arrangements put in place for assessing the capacity of parents to earn income – which has been one the biggest problems with the existing scheme. The Government will also make provision for non-custodial parents to spend a greater proportion of their payments directly on their children.”
From January 2007 the Government will introduce a mechanism for child support clients to seek an independent review of decisions by the Social Security Appeals Tribunal and broaden the powers of the courts to ensure child support obligations are met
“The final stage of the process, from January 2008, will be the introduction of a whole new child support formula which is based on research into the costs of raising children, better reflects community values around shared parenting and better balances the best interests of parents and children. The formula will treat both parents’ income and living costs more equally and take account of the fact that older children cost more. It will also ensure that children from first and second families will be treated more equally.”
Under the Building a Better CSA package, the Child Support Agency will be able to deliver a more personalised service to customers, including face to face meetings for 30,000 parents with complex issues. CSA services will be increased at 26 offices across the country largely through co-locations with Centrelink and parents will be given more options in how they interact with the CSA.
The five million phone calls CSA handles each year will also be recorded to assist in monitoring the quality and consistency of service to customers.
Smaller CSA team sizes will mean a faster response to issues as they arise and a consistency in decision making and 3500 CSA staff will undergo intensive and ongoing training to improve their customer service skills.
The agency will also be reviewing the paperwork it sends to clients, to reduce customer confusion and frustration.
“These are all changes I have been lobbying long and hard to achieve and it is very satisfying to see the Government taking these issues seriously,” Mr Schultz said.
“These announcements by the Government will be widely welcomed however given the severity of the child support issue I am certain that problems will continue to arise until the full changes are put in place.
“While I look forward to seeing these changes implemented, in the meantime I am pleased that the Minister for Families, Community Services and Indigenous Affairs has undertaken to address my immediate concerns about the need to plug loopholes in the existing child support legislation which have allowed the CSA to inappropriately use the Act an abuse people’s rights, to the extent that it has destroyed them financially and mentally.
“I’ve undertaken to give him access to my database which will illustrate how the Act is being abused and where it needs to be amended to ensure that these draconian, destructive powers are removed.”
Detailed information about the reforms is being published on the internet so that parents are fully aware of the changes.
Fact sheets about the changes will also be available from Alby Schultz’ electorate office. To request copies of the fact sheets call (02) 4822 2277 or email alby.schultz.mp@aph.gov.au.
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