123AOrders for provision of child support in the form of lump sum payment to be credited against liability

123A Orders for provision of child support in the form of lump sum payment to be credited against liability

(1) The court may make an order that a liable parent provide child support for a child to a carer entitled to child support in the form of a lump sum payment to be credited against the liability under the relevant administrative assessment in relation to amounts payable under the liability if: (a) the carer entitled to child support or the liable parent makes an application to a court under paragraph 123(1)(b); and (b) the court is satisfied that it would be: (i) just and equitable as regards the child, the carer entitled to child support and the liable parent; and (ii) otherwise proper; to make an order under this section; and (c) the amount of the lump sum payment equals or exceeds the annual rate of child support payable for the child under the administrative assessment.

Note: If the court makes such an order, the lump sum payment is credited under section 69A of the Registration and Collection Act against the liable parent’s liability (rather than reducing the annual rate of child support payable under the administrative assessment).

(2) A lump sum payment may include a payment by way of transfer or settlement of property. (3) An order under subsection (1): (a) must specify the amount of the lump sum payment; and (b) must specify that the lump sum payment is to be credited against the liability under the administrative assessment in relation to 100%, or another specified percentage that is less than 100%, of the amounts payable under the liability. (4) In determining the application made under paragraph 123(1)(b), the court must have regard to: (a) the administrative assessment; and (b) any determination in force under Part 6A (departure determinations) in relation to the child, the carer entitled to child support and the liable parent; and (c) any order in force under Division 4 of this Part (departure orders) in relation to the child, the carer entitled to child support and the liable parent; and (d) whether the carer entitled to child support is in receipt of an income tested pension, allowance or benefit; and (e) if the carer entitled to child support is not in receipt of such a pension, allowance or benefit—whether the circumstances of the carer are such that, taking into account the effect of the order proposed to be made by the court, the carer would be unable to support himself or herself without an income tested pension, allowance or benefit. (5) In determining whether it would be just and equitable as regards the child, the carer entitled to child support and the liable parent to make an order under subsection (1), the court must have regard to the matters mentioned in subsections 117(4), (6), (7), (7A) and (8). (6) In having regard to the earning capacity of a parent of the child under paragraph 117(4)(da), the court may determine that the parent’s earning capacity is greater than is reflected in his or her income for the purposes of this Act only if the court is satisfied as mentioned in subsection 117(7B). (7) In determining whether it would be otherwise proper to make an order under subsection (1), the court must have regard to the matters mentioned in subsection 117(5). (8) Subsections (4), (5), (6) and (7) do not limit the matters to which the court may have regard.