Income Tax Assessment (Requirement for Parents Liable for or Entitled to Child Support to Lodge a Return for the 2025 Year) Instrument 2025

Scope by person and period: The instrument applies to any person who, for at least one day in the 2025 year (the year ended 30 June 2025 or a substituted accounting period), was either (a) a carer entitled to child support, other than a non-parent carer, or (b) a liable parent, using the meanings provided in the CSAA. The “for at least one day” language makes the threshold of temporal presence minimal; a single day in the status is sufficient to trigger the lodgment requirement (s 5(1); s 4 definitions).

Exemption test: The statutory exemption is a conjunctive two-limb test in s 5(2):

• Financial aggregation limb (s 5(2)(a)): the total of six specified amounts for the 2025 year must be less than $29,842. The six items are listed in s 5(2)(a)(i)-(vi): taxable income (excluding any assessable first home super saver released amount); tax-free pensions or benefits as defined in s 5 of the CSAA; target foreign income as defined in s 5B of the CSAA; reportable fringe benefits total; total net investment loss; and reportable superannuation contributions. The inclusion of both taxable and non-taxable items (for example reportable fringe benefits and tax-free pensions as defined by CSAA) means the aggregation is not limited to assessable taxable income alone.
• Payment-receipt limb (s 5(2)(b)): the person must have been in receipt, for the whole of the 2025 year, of one or more of an enumerated list of Commonwealth pensions, allowances or payments. The list is extensive and includes JobSeeker, Austudy, Disaster Recovery Allowance, Farm Household Allowance, various SSA and VEA pensions and education payments, MRCA Education Allowance, age pension, carer payment, disability support pension and more (s 5(2)(b)(i)-(xxiii)). The phrase “for the whole of the 2025 year” sets a continuous-entitlement test.

Timing and substituted accounting periods: The basic lodgment date is 31 October 2025 (s 6(1)). For taxpayers with a substituted accounting period (defined in s 4 as leave granted under s 18 of the ITAA 1936), lodgment is due by the last day of the fourth month after the end of the substituted accounting period (s 6(2)). A note points readers to the Commissioner’s discretion under TAA s 388‑55 to defer lodgment time (note to s 6).

Administrative form and Commissioner’s powers: The return must be in the approved form (note to s 5 referring to s 161A of the Act). The Commissioner retains normal powers to issue notices under ss 162 and 163 of the Act requiring returns or further information, and to grant exemptions from lodgment (note to s 5). Offences and penalties for failing to give a return or required information are invoked under TAA s 8C and Division 286 in Schedule 1 to the TAA (note to s 5).

Cross-references: The instrument relies on definitions and concepts in multiple statutes. The instrument itself defines key terms but relies on the CSAA for what constitutes a carer entitled to child support, liable parent and non-parent carer, and on the SSA and VEA for certain payments (s 4; s 5(2)(b) list). The aggregation requires reference to CSAA s 5 and s 5B for tax-free pensions and target foreign income respectively (s 5(2)(a)(ii)-(iii)).

Commencement and authority: The instrument is made under s 161 of the Act and takes effect the day after registration (ss 2-3). The text contains the Commissioner’s signature and date (29 April 2025).

Primary affected persons: The instrument targets two narrowly defined categories as identified in the CSAA: (1) carer entitled to child support, excluding non-parent carers; and (2) liable parents. Any person who held either status for at least one day in the 2025 year becomes subject to the lodging requirement unless they meet the exemption test in s 5(2). Because the terms are defined in the CSAA, the pool of affected individuals is those whom the Child Support (Assessment) Act 1989 recognises in those categories , the instrument does not itself redefine those categories (s 4).

Exclusions within the cohort: Non-parent carers are explicitly excluded from the coverage for the carer category (s 5(1) cross-referenced with s 4). The instrument also contains an exemption for persons whose aggregated amounts are below the $29,842 threshold and who were in receipt of listed Government payments for the whole year (s 5(2)). Therefore low-income recipients of specified social payments for the whole year can avoid lodgment despite having the relevant child support status.

Interaction with substituted accounting periods: Affected entities that have a substituted accounting period (a leave to adopt an accounting period other than the year ended 30 June 2025 under s 18 of the ITAA 1936) are recognised; such persons must lodge by the last day of the fourth month after the end of that substituted accounting period (s 6(2)). That means some affected entities will have a different practical lodgment window than the default 31 October 2025 (s 6(1)).

Administrations and decision-makers: The Commissioner of Taxation is the decision-maker for issuing the instrument (signed Rob Heferen) and retains statutory powers to administer and enforce lodgment, including issuing notices under ss 162 and 163 of the Act, granting exemptions, and using TAA enforcement and penalty mechanisms (note to s 5). The instrument itself does not require action by child support authorities, but it relies on CSAA definitions, so the ATO will need to identify the affected persons through internal records or cross-references with CSAA-derived datasets (s 4; s 5(1)).

Third parties and intermediaries: Tax agents and accountants who prepare returns for liable parents and carers will be affected in their workload and client advice duties because the instrument expands the set of people the ATO can require to lodge a return for 2025 (s 5). Employers, super funds and payers of reportable fringe benefits and reportable superannuation contributions are not directly altered by this instrument, but their existing reporting feeds into the calculations used to assess the exemption threshold (s 5(2)(a)(iv), (vi)). The instrument does not create new reporting obligations for third parties; it operates through the lodgment obligation and the data elements already defined in primary legislation.

Persons not affected: The instrument does not impose obligations on persons who were not carer-entitled or liable parents during the 2025 year, nor does it alter child support liability itself. It also excludes non-parent carers explicitly (s 5(1)). The instrument does not alter the obligations of the Commissioner or the method of tax assessment beyond requiring returns from the specified cohort; it simply activates the lodgment requirement under s 161 of the Act for that group (s 3).

Primary duty to lodge: The central duty created is that every person who was for at least one day in the 2025 year either a carer entitled to child support (excluding non-parent carers) or a liable parent must “give a return for the 2025 year” under s 161 of the Act (s 5(1)). The duty is conditional on status during the year and is a statutory obligation of lodgment.

Exemption entitlement: A right not to lodge is created where both limbs of s 5(2) are satisfied. To claim the exemption, a person must show (a) their aggregate of the six specified amounts for the 2025 year was less than $29,842; and (b) they were in receipt of one or more of the listed Commonwealth pensions, allowances or payments for the whole of the 2025 year (s 5(2)(a)-(b)). The instrument thus confers a carve-out that is available by satisfying a precise financial aggregation and a whole-year receipt condition.

Form and timing obligations: Where the duty to lodge applies, the return must be in the approved form (note to s 5 referring to s 161A of the Act). Lodgment must occur by 31 October 2025 unless a person holds a substituted accounting period, in which case lodgment is required no later than the last day of the fourth month after the end of that substituted period (s 6(1)-(2)). The Commissioner may defer lodgment time under TAA s 388‑55 (note to s 6). These sections set firm procedural boundaries for compliance.

Commissioner’s powers and procedural rights: The Commissioner retains existing statutory powers to require returns, further or fuller returns, and additional information or documents under ss 162 and 163 of the Act (note to s 5). The Commissioner can also grant exemptions from lodgment. Those powers give the Commissioner discretion to extend, refine or enforce the lodgment requirement beyond the default operation of this instrument. The instrument also sets the legal basis for the Commissioner to rely on offence and penalty provisions in the TAA where lodgment obligations are not met (note to s 5).

Penalties and enforcement rights: The instrument points to the penal consequences for non-compliance: failure to give a return or required information under a taxation law is an offence under TAA s 8C, and a person may also become liable to pay a penalty under Division 286 in Schedule 1 to the TAA (note to s 5). That provides criminal offence and civil monetary penalty avenues for enforcement.

Cross-Act reliance and rights: Several items required to calculate the exemption are themselves defined in other Acts (CSAA s 5 and s 5B for tax-free pensions and target foreign income, respectively). Those cross-references mean a taxpayer’s right to the exemption depends on determinations made under other statutes. Persons have the right to rely on their own records and statutory characterisations to test the exemption, but those records will incorporate information from other statutory regimes.

Recordkeeping duty (implicit): While the instrument does not create a separate recordkeeping provision, compliance with the lodgment obligation and any notice under ss 162/163 will require persons to retain records and documents sufficient to demonstrate taxable income and the other specified amounts for the 2025 year, and proof of continuous receipt of any listed government payment for the whole year. That follows from the content of the exemption test and the Commissioner’s power to require further information (s 5(2); note to s 5).

Statutory enforcement framework: The instrument is made under s 161 of the Income Tax Assessment Act 1936 and sits within the Commissioner’s broader statutory enforcement architecture. It explicitly preserves the Commissioner’s powers to issue notices requiring returns, further returns, and supporting information under ss 162 and 163 of the Act (note to s 5). Those notices are enforceable statutory instruments capable of generating non-compliance consequences.

Criminal and civil penalties referenced: The instrument points taxpayers to the Taxation Administration Act 1953 (TAA) for consequences of non-compliance. It states that any person who does not give a return, or any other information when and as required under a taxation law, commits an offence under s 8C of the TAA. It also notes potential liability to pay a penalty under Division 286 in Schedule 1 to the TAA (note to s 5). The instrument itself does not set the scale of penalties, but invokes the TAA’s penal and civil regimes as the enforcement mechanism.

Discretionary compliance instruments: The Commissioner can respond to non-compliance or partial compliance by issuing notices under ss 162 and 163 to require fuller returns or further documents (note to s 5). Those notices are procedural levers: they shift the compliance burden onto the recipient to produce documents or to complete returns in approved form (note to s 5). The Commissioner’s power to grant exemptions from lodging returns is also preserved, which is an administrative enforcement tool that can be used to avoid applying punitive measures in individual cases (note to s 5).

Timing enforcement considerations: The instrument fixes lodgment dates (31 October 2025 or, for substituted accounting periods, the end of the fourth month after the substituted period ends) (s 6). The Commissioner’s power under TAA s 388‑55 to defer lodgment time is noted, which allows administrative flexibility in enforcement of deadlines (note to s 6). A failure to lodge by the deadline can trigger the TAA default enforcement steps, including penalties and possible prosecution pursuant to TAA provisions referenced in the instrument’s notes.

Evidence and verification: The exemption requires an aggregated total of particular items (s 5(2)(a)) and continuous receipt of specified payments for the whole year (s 5(2)(b)). Enforcing officers will therefore require documentary proof of income components and evidence of continuous receipt of specified payments. The instrument’s note that the Commissioner can require further or fuller returns and any information, statement or document relating to the person’s financial affairs signals that the Commissioner may seek third‑party information or records in enforcement (note to s 5).

Interaction with child support authorities: The instrument relies on CSAA definitions to identify affected individuals (s 4). While the instrument does not itself establish formal data-sharing mechanisms, the administrative task of identifying who was a carer entitled to child support or a liable parent , and whether they qualify for the exemption , may involve cross-referencing child support records. The instrument preserves the Commissioner’s enforcement powers; it does not, however, set out any specific inter-agency enforcement process.

Limitation of instrument’s own sanctions: The instrument does not introduce new or bespoke criminal offences or civil penalties specific to this cohort; rather it activates existing TAA enforcement pathways and preserves the Commissioner’s existing powers to issue notices and grant exemptions (note to s 5). The practical consequence is reliance on existing tax administration sanctions rather than new sanctions specific to the child-support-linked cohort.

Cross-referencing of definitions: The instrument depends on definitions in multiple statutes. Section 4 states that a number of expressions are defined in section 6 of the Act, and then defines specific terms for the instrument. Critically, the instrument imports key person definitions from the Child Support (Assessment) Act 1989 (CSAA): carer entitled to child support, liable parent and non-parent carer (s 4). It therefore hinges on CSAA characterisations to identify the cohort.

Aggregation items defined elsewhere: The exemption’s aggregation test in s 5(2)(a) refers to amounts that are defined in other Acts. Taxable income is a concept within the Act; tax-free pensions or benefits and target foreign income are defined in the CSAA (s 5(2)(a)(ii)-(iii) referencing CSAA ss 5 and 5B). Reportable fringe benefits total and reportable superannuation contributions are reporting categories used in tax administration and associated legislation. The instrument requires taxpayers and administrators to pull figures that are defined and generated across multiple legal regimes.

Interaction with social security and veterans law: The second limb of the exemption requires continuous receipt of items defined or payable under the Social Security Act 1991 (SSA), the Veterans’ Entitlements Act 1986 (VEA), the ABSTUDY scheme and other named Acts/programs (s 5(2)(b)(i)-(xxiii)). The instrument therefore intersects with social security, veterans, and education payment regimes by using entitlement to those payments as an eligibility test for the lodgment exemption.

Procedural law and TAA: Enforcement, offence and penalty mechanisms are supplied by the Taxation Administration Act 1953 (TAA) as referenced in the instrument’s notes (note to s 5 and note to s 6 referencing TAA s 388‑55). The instrument therefore relies on the TAA for enforcement and for administrative discretions such as deferral of lodgment time (note to s 6).

No substantive change to child support law: The instrument does not alter the content, calculation or administration of child support liabilities under the CSAA. Its effect is limited to tax lodgment obligations for persons defined by CSAA status; it does not change the CSAA or create new child support liabilities.

Data and administrative dependencies: Although the instrument does not itself create new information‑sharing powers, the Commissioner’s practical ability to identify affected persons and to verify continuous receipt of listed payments likely depends on existing inter‑agency data relationships, because the instrument draws on CSAA, SSA and VEA definitions and payment status to determine obligations and exemptions (s 4; s 5). The instrument does not specify the mechanism for that identification or verification; it relies on the Commissioner’s usual administrative processes and powers to request further information (note to s 5).

Forms law: The requirement that the return be in the approved form links the instrument to the Act’s forms regime (note to s 5 referencing s 161A of the Act). The instrument does not itself publish a form but requires compliance with the approved-form rules under the Act.

Original instrument details: The instrument is the Income Tax Assessment (Requirement for Parents Liable for or Entitled to Child Support to Lodge a Return for the 2025 Year) Instrument 2025. It bears the Commissioner’s signature, dated 29 April 2025 (front matter). Section 1 states the name of the instrument.

Commencement and table note: Section 2 contains a commencement table specifying that “the whole of this instrument” commences the day after registration (s 2, Column 2). The table expressly notes that it relates only to the provisions as originally made and will not be amended to deal with later amendments of the instrument (s 2 table note). The table also includes a statement that any information in Column 3 is not part of the instrument (s 2(2)).

Authority for making: Section 3 records that the instrument is made under section 161 of the Income Tax Assessment Act 1936. That identifies the statutory head of power for the Commissioner to require persons to lodge returns.

No listed amendments in the instrument: The instrument as provided contains no subsequent amendment provisions, no schedules amending other instruments, and no transitional provisions beyond the commencement note. The instrument’s own notes state the commencement table relates only to the instrument as originally made and will not be amended in the published version to reflect later amendment (s 2). There are therefore no recorded amendments to report within the text supplied.

Implication for future amendment: The instrument does not include expiry or sunset clauses. It applies specifically to the 2025 year as defined in s 4. Any extension or replication for later years would require a new instrument made under the Commissioner’s s 161 power, or a legislative amendment by Parliament. The text does not indicate any planned amendment or extension beyond the 2025 year.

Publication and form changes: The instrument contains a formal note that the return must be in the approved form (note to s 5 referring to s 161A of the Act). Any change in approved form would be effected under the Act’s forms procedure rather than by amending this instrument.

Record of making: The front matter shows the instrument was made and dated 29 April 2025, signed by the Commissioner. The instrument contains no later dates or modifications, and no secondary instruments amending it are attached.

No cases referenced in the instrument: The instrument itself contains no references to judicial decisions or litigation. It does not cite any cases or include a history of challenges, nor does it indicate that the instrument has been the subject of any court proceedings.

No litigation indicated in the text: The instrument’s notes and operative provisions do not record any pending or past litigation in relation to the instrument’s validity, operation or enforcement. There is no text describing legal challenges, disputes or appeals, and no cross-reference to any judicial interpretation.

Practical implication of absence of litigation history: As supplied, there is no record in the instrument of any court consideration of its provisions. Practitioners seeking precedents, case law or judicial interpretation of the lodgment obligation or the exemption test will not find them in this instrument and would need to search for TAA/Act/CSAA jurisprudence relevant to analogous lodgment requirements, or for cases that involve s 161 instruments generally. The instrument itself provides no litigation track record to consult.

Remedies and appeal routes (statutory but not litigated here): Although no litigation history is recorded, the instrument operates within a statutory environment that contains administrative review and court rights for taxpayers under existing Commonwealth law (for example objections and appeals under the TAA and judicial review avenues). The instrument does not alter those statutory review or appeal mechanisms; however, the instrument does not itself describe those remedies. Any disputes about the Commissioner’s use of powers (for example issuing notices under ss 162 or 163 or imposing penalties under the TAA) would proceed under the ordinary administrative and court review frameworks outside the instrument’s text.

“For at least one day” trigger: The lodgment requirement is very low on time presence. Section 5(1) requires a return if the person was a carer entitled to child support (other than a non-parent carer) or a liable parent for at least one day in the 2025 year. Even a single day in the status during the year triggers the duty unless the person qualifies for the two‑limb exemption. Practitioners should not assume partial-year status avoids lodgment.

Exemption is conjunctive and precise: The exemption requires satisfaction of both the aggregation and the whole-year receipt tests in s 5(2). A failure on either limb disqualifies a person from the exemption. In particular, the payment limb requires receipt “for the whole of the 2025 year” of one or more listed payments (s 5(2)(b)). The “whole of the year” test is strict: partial-year receipt of a listed payment will not meet that limb.

Aggregation scope includes non-taxable reportables: The aggregation in s 5(2)(a) is not limited to assessable taxable income. It includes tax-free pensions or benefits as defined in the CSAA, target foreign income defined in CSAA s 5B, reportable fringe benefits total, total net investment loss, and reportable superannuation contributions. Reportable fringe benefits and reportable superannuation contributions are non-cash or reporting items that affect liability under other regimes. Practitioners must assemble figures from multiple sources and definitions to calculate the aggregate correctly.

First Home Super Saver released amount carve-out: The aggregation excludes any assessable first home super saver released amount from taxable income for the purpose of the threshold calculation (s 5(2)(a)(i)). That specific carve-out can affect the calculation for people who have used FHSS releases during the year.

Dependency on CSAA definitions: The terms identifying the cohort (carer entitled to child support, liable parent, non-parent carer) are defined in the CSAA (s 4). Any ambiguity or dispute over whether a person met that CSAA status in 2025 will affect the application of the instrument. The instrument does not itself set out the criteria for those statuses; practitioners must consult the CSAA.

Interaction with substituted accounting periods: Persons with substituted accounting periods must use the alternate lodgment deadline in s 6(2). Failure to recognise substituted accounting periods or to calculate the correct deadline will give rise to late lodgment exposure. The Commissioner’s power to defer lodgment under TAA s 388‑55 is available but not automatic (note to s 6).

Approved form requirement: The return must be given in the approved form (note to s 5 referring to s 161A). Submitting material that does not meet the approved-form requirements or failing to respond to a Commissioner’s notice for further or fuller returns could expose a person to offence or penalty provisions in the TAA (note to s 5).

No change to child support obligations: The instrument requires tax returns but does not alter child support liability calculations under the CSAA. Tax practitioners sometimes conflate tax lodgment obligations with child support obligations; the instrument does not modify CSAA rules or entitlements.

Penalties are governed elsewhere: The instrument points to TAA s 8C and Division 286 in Schedule 1 to the TAA for offences and penalties (note to s 5). Practitioners must consult the TAA to understand the quantum, waiver, remission or mitigation possibilities for penalties; the instrument itself does not state penalty amounts.

Identification and verification practicalities: The instrument presupposes the Commissioner can identify who was a carer entitled to child support or a liable parent. The instrument is silent on the mechanism; in practice, administrative identification may require cross-referencing CSAA records or requesting information via ss 162/163 notices. The instrument leaves those operational processes to the Commissioner’s ordinary powers (note to s 5).

No transitional or retrospective complexity addressed: The instrument applies to the 2025 year and commences the day after registration (s 2). It contains no transitional arrangements for people who change status late in the year beyond the “at least one day” rule. Practitioners should be alert to individuals whose status starts or ends near year‑end.

Identify whether the person falls within the cohort: Determine whether the taxpayer was, for at least one day in the 2025 year, a carer entitled to child support (other than a non-parent carer) or a liable parent as defined in the CSAA (s 5(1); s 4). Consult the CSAA for the statutory elements of those definitions. If the person did not hold either status for at least one day, no lodgment obligation under this instrument arises.

Calculate the aggregation for the exemption test: If the person falls within the cohort, calculate the total of the six amounts listed in s 5(2)(a) for the 2025 year: (i) taxable income (excluding any assessable first home super saver released amount); (ii) tax-free pensions or benefits as defined in CSAA s 5; (iii) target foreign income as defined in CSAA s 5B; (iv) reportable fringe benefits total; (v) total net investment loss; and (vi) reportable superannuation contributions. Add these items to determine whether the aggregate is less than $29,842 (s 5(2)(a)). Ensure accurate extraction of figures from PAYG summaries, superannuation reporting, fringe benefits statements and any CSAA-defined pension figures.

Verify continuous receipt of listed payments: If the aggregation is below $29,842, confirm whether the person was in receipt of one or more of the listed Australian Government pensions, allowances or payments for the whole of the 2025 year (s 5(2)(b)(i)-(xxiii)). The list includes JobSeeker, Austudy, ABSTUDY living allowance, age pension, carer payment, disability support pension, MRCA Education Allowance, Veterans’ payments and others. “For the whole of the 2025 year” requires continuous entitlement for the full period; any gap may disqualify the exemption.

Claim the exemption or lodge the return: If both exemption limbs are satisfied, no lodgment is required under this instrument (s 5(2)). Retain documentation supporting the aggregation calculation and evidence of continuous receipt of the listed payment(s) in case the Commissioner issues a notice for proof. If either limb is not met, the person must lodge an income tax return for the 2025 year in the approved form (note to s 5).

Observe lodgment deadlines: For persons without a substituted accounting period, lodge by 31 October 2025 (s 6(1)). For those with a substituted accounting period (leave granted under s 18 of the ITAA 1936), lodge no later than the last day of the fourth month after the end of that substituted accounting period (s 6(2)). Where necessary, apply to the Commissioner for an extension or reliance on deferral under TAA s 388‑55; do not assume deferral is automatic (note to s 6).

Respond promptly to Commissioner notices: The Commissioner may issue notices under ss 162 and 163 requiring returns, or further or fuller returns, or any information, statement or documents about a person’s financial affairs (note to s 5). If a taxpayer receives such a notice, respond within the time and in the approved form, preserving records and seeking professional tax assistance where required.

Keep contemporaneous records: Maintain supporting documents for taxable income, FHSS released amounts, reportable fringe benefits statements, superannuation reporting, net investment loss computations, and proof of receipt of listed government payments for the whole year. The Commissioner’s power to require further information combined with the TAA enforcement provisions makes documentary evidence essential.

Consider tax agent engagement: Tax agents and preparers should review client status against the CSAA definitions and the exemption tests, and discuss documentation requirements with clients early. Agents should also be alert to substituted accounting periods to calculate the correct lodgment deadline for clients with that status.

Check approved-form requirements: Ensure returns are completed in the approved form as required by the Act (note to s 5 referring to s 161A). Confirm the ATO’s approved form and any specific fields required to demonstrate the elements relevant to the exemption calculation.

Plan for penalties and disputes: Be aware that failure to lodge when required may attract offences under TAA s 8C and penalties under Division 286 in Schedule 1 to the TAA (note to s 5). If in doubt about entitlement to the exemption or the correct aggregation methodology, consider pre-emptive disclosure, engaging the Commissioner through the agent, or seeking advice about administrative remedies and objection rights under the TAA.

Use statutory discretion where appropriate: If exceptional circumstances prevent timely lodgment, consider applying to the Commissioner to defer lodgment time under TAA s 388‑55 (note to s 6) or seeking an exemption from lodgment under the Commissioner’s powers noted in s 5. Any such application should be supported by evidence of the circumstances and proposed timeframes for compliance.