STATUTORY AND ADMINISTRATIVE FRAMEWORK
16 Section 3(1) of the CSA Act states that the parents of a child have the primary duty to maintain the child.
17 Section 4(1) of the CSA Act provides that the Act's principal object is to ensure that children receive a proper level of financial support from their parents. By s 4(2), particular objects of the Act include ensuring that:
a) the level of financial support to be provided by parents for their children is determined according to their capacity to provide financial support and, in particular, that parents with a like capacity to provide financial support for their children should provide like amounts of financial support; and
b) the level of financial support to be provided by parents for their children should be determined in accordance with the costs of the children; and
c) persons who provide ongoing daily care for children should be able to have the level of financial support to be provided for the children readily determined without the need to resort to court proceedings.
18 An application for administrative assessment of child support may be made to the Registrar under Part 4 of the CSA Act. Such an assessment is made in accordance with a statutory formula, unless the Registrar determines, or a court orders, that the provisions relating to administrative assessment of child support may be departed from. Part 5 of the CSA Act includes formulas used for assessing the annual rate of child support payable by a parent for a child "for a day in a child support period". Section 35A of the CSA Act provides a simplified outline of Part 5 which states relevantly:
• The Costs of the Children Table published by the Secretary each year (based on the table in Schedule 1 to this Act) sets out the costs to parents of raising children in various age ranges.
• Those costs are to be met by both parents (by paying child support or by caring for their children) according to each parent's capacity to meet the costs.
• To determine each parent's capacity to meet those costs, the parents are assessed in respect of the costs of the child.
• Generally, both parents' income is taken into account in determining each parent's capacity to meet the costs of their children.
19 One of the integers in the formulas is each parent's "percentage of care" for the child for the day: see relevantly ss 35 and 36 CSA Act. By way of illustrating the potential significance of the "percentage of care" determination, s 40C of the CSA Act provides that the annual rate of child support payable by a parent for a child for a day in a child support period is nil if:
(a) the parent's annual rate of child support for the child is worked out under section 35 or 37 (income of both parents, no non-parent carer); and
(b) the parent's percentage of care determined for the purposes of the administrative assessment of child support for the child is more than 65%.
20 Division 4 of Part 5 of the CSA Act is entitled "Percentage of care".
21 Section 50 of the CSA Act is in the following terms:
Determination of percentage of care - responsible person has had etc. a pattern of care for a child
(1) This section applies if:
(a) either of the following applies:
(i) an application is made under section 25 or 25A for a parent to be assessed in respect of the costs of the child;
(ii) a parent is taken under section 73A to have had a relevant dependent child from a day specified in that section;
and the Registrar is satisfied that a responsible person for the child has had, or is likely to have, a pattern of care for the child during such period (the care period) as the Registrar considers to be appropriate having regard to all the circumstances; or
(b) the Registrar:
(i) revokes, under Subdivision C of this Division, a determination of a responsible person's percentage of a care for a child that was made under section 49 or this section; and
(ii) is satisfied that the responsible person has had, or is likely to have, a pattern of care for the child during such period (the care period) as the Registrar considers to be appropriate having regard to all the circumstances.
(2) The Registrar must determine the responsible person's percentage of care for the child during the care period.
(3) The percentage determined under subsection (2) must be a percentage that corresponds with the actual care of the child that the Registrar is satisfied that the responsible person has had, or is likely to have, during the care period.
(4) Subsection (3) does not apply if section 51 or 52 applies in relation to the responsible person.
22 Section 54A of the CSA Act provides:
Working out actual care, and extent of care, of a child
(1) The actual care of a child that a person has had, or is likely to have, during a care period may be worked out based on the number of nights that the Registrar is satisfied that the child was, or is likely to be, in the care of the person during the care period.
(2) The extent of care of a child that a person should have had, or is to have, under a care arrangement during a care period may be worked out based on the number of nights that the child should have been, or is to be, in the care of the person during the care period under the care arrangement.
(3) For the purposes of this section, a child cannot be in the care of more than one person at the same time.
(4) This section does not limit section 50, 51, 52 or 54.
23 Section 54B provides:
Days to which the percentage of care applies if sections 51 and 52 did not apply in relation to a responsible person
(1) If:
(a) a determination of a responsible person's percentage of care for a child is made under section 49 or 50; and
(b) sections 51 and 52 did not apply in relation to the responsible person;
the percentage of care applies to each day in a child support period on and from the application day unless a revocation of the determination under Subdivision C of this Division takes effect.
(2) The application day is:
(a) if subparagraph 49(1)(a)(i) or 50(1)(a)(i) applies in relation to the determination - the day on which the application referred to in that subparagraph is made; or
(b) if subparagraph 49(1)(a)(ii) or 50(1)(a)(ii) applies in relation to the determination - the day referred to in that subparagraph; or
(c) if paragraph 49(1)(b) or 50(1)(b) applies in relation to the determination:
(i) in a case where the revocation of the determination referred to in subparagraph 49(1)(b)(i) or 50(1)(b)(i) takes effect at the beginning of the day referred to in paragraph 54G(2)(a)--that day; or
(ii) otherwise - the day that begins immediately after the revocation of the determination referred to in that subparagraph takes effect.
24 Section 54E of the CSA Act provides:
In making a determination under this Subdivision, the Registrar must have regard to any guidelines in force under subsection 35N(1) of the Family Assistance Act [A New Tax System (Family Assistance) (Administration) Act 1999].
25 At the relevant time, the Child Support Agency published an online "law and policy guide" to the child support assessment scheme ("CSA guidelines"). The CSA guidelines are not guidelines to which s 35N(1) applies.
26 The CSA guidelines provided relevantly:
Determining whether care exists
An object of the Assessment Act is "that persons who provide ongoing daily care for children should be able to have the level of financial support to be provided for the children readily determined without the need to resort to court proceedings" (section 4 (2)(c)). The Act does not define the term "ongoing daily care," however CSA will take into account a number of factors in determining whether a person cares for a child.
In most cases, it will be relatively clear whether and to what extent a person is caring for a child. However, where there is doubt, CSA will consider whichever of the following are relevant to the particular case.
• To what extent does the person have control of the child, including having overall responsibility for the child and making:
o major decisions relating to who the child spends time with and the child's health, education, discipline, recreational and/or social activities; and
o arrangements for others to meet the needs of the child.
• To what extent does the person meet the needs of the child by providing the child with accommodation, clothing, food, child care, education, health care, emotional support, supervision, transport and extra curricular activities?
• To what extent does the person pay for the costs of meeting the needs of the child?
• To what extent does the person otherwise provide financial support for the child?
• To what extent does the child provide for his or her own needs or have those needs met from another source?
• To what extent is the child financially independent or financially supported from another source?
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Percentage of care
The percentage of care is the mechanism in the child support assessment formula [sic] takes into account the amount of time a parent or non-parent carer is responsible for providing care for the child.
A parent or non-parent carer's percentage of care for a day in a child support period is the percentage of care that the person is likely to have of the child during the care period.
Care will generally be worked out based on the number of nights that the child is likely to be in the care of the person during the care period (section 48(2) of the unamended Act, section 54A of the amended Act).
Prior to 1 July 2010, parents and non-parent carers could also agree to a percentage of care to be used in the assessment, if they agreed that the number of nights did not
appropriately represent their care.
From 1 July 2010, CSA can base the care determination on hours of care over the care period if a determination based on nights would be inappropriate.
Example
One parent may provide care every night while the other parent provides care from 8am to 6pm every weekday.
Where parents are separated but are living in the same house, CSA will determine each parent's percentage of care based upon the care that is actually occurring for the child.
If CSA is not able to determine a care percentage based upon the actual care, CSA will generally accept that the parents share the care of their children equally. In this case, CSA will determine that each parent has a care percentage of 50%. This care percentage will remain in place until either parent is able to demonstrate that the actual care of the child is something other than equally shared.
Additionally, in limited circumstances, a person may have care of a child who is not living with them for a period of time.
Example
A person can provide care for a child who is at boarding school, in hospital or in separate accommodation. A person who simply supervises the child (for example, a baby sitter, a child minder such as a grandparent, a schoolteacher) does not provide care.
Consideration is given to who has responsibility for making arrangements for, and decisions about, the child's welfare, as well as who is meeting the child's costs, rather than just the accommodation arrangements themselves. CSA will give weight to statements from both parents and any non-parent carers.
A parent or non-parent carer's percentage of care for a child will be used to determine the parent's or non-parent carer's cost percentage for the child. The percentage of care will be rounded to a whole percentage (section 48(3) of the unamended Act, section 54D of the amended Act). See Chapter 2.4.5 for more information on these percentages in the child support formula.
Care other than in nights
From 1 July 2010, CSA can base the care percentage determination on hours of care over the care period if a determination based on nights would be inappropriate. A decision as to whether nights are an appropriate basis for a care percentage determination will depend on the particular circumstances of the case.
Generally, the number of nights a person cares for a child will be the best measure of their percentage of care. However, this will not always be the case. Although a determination based on the hours of care that a person provides might result in a different percentage of care to a determination based on the nights of care, this would not necessarily mean that the nights of care are not the best measure of care that the person provides.
If a person has some overnight care and a small amount of additional "daytime" care that is not associated with an overnight stay, this will also not necessarily mean a calculation based on nights is inappropriate.
Example
M and F have two children, A and B, who live mainly with M. F has care of the children every second Friday and Saturday night and some school holidays. F also picks the children up from school on Wednesdays, takes them to soccer and has dinner with them, before dropping them back to M's house for the night. As the daytime care F provides each Wednesday does not significantly affect the care arrangements, it is appropriate to base the percentage of care on the nights of care that each parent has of the children.
A person's percentage of care will only be based on hours if CSA is satisfied that in the circumstances of the case, the calculation based on hours provides a better measure of care than nights. CSA will take into account the information from each parent and/or non-parent carer about the care they provide and why they think nights or hours is the better measure of care…