There is no escape from child support arrears being paid if you are injured and have a personal injuries claim in Mackay.
When do child support obligations arise?
Where a parent is either the natural or adoptive parent of the child, or where the child is born from procedures such as IVF, obligations of child support can arise. These obligations will arise where:-
- either parent asks the Department of Human Services to make a child support assessment of the amount of child support payable; then child support can be collected from the parent by DHS or can be arranged privately between the parents;
- the parents make a formal child support agreement between themselves;
- the parents make an informal child support agreement; or
- the court makes orders about child support. However, this will occur in limited circumstances.
Generally, child support obligations will terminate when the child turns 18. However, if the child turns 18 and is still attending school obligations will cease on the last day of that school year.
What happens if you fail to pay child support?
The Registrar has a wide range of enforcement methods available where a parent neglects to pay child support, these methods include:-
- Taking payments from your income;
- Taking deductions from your social security benefits;
- Interception of your tax refund;
- Collection from third parties (those who may owe you money);
- Making a departure prohibition order which prevents you from leaving Australia.
If these methods are unsuccessful, the Registrar can enforce payment through the Courts.
Late payment penalties
Further, where child support arrangements are made through the Department of Human Services and a parent fails to make payments in full when they are due, penalties apply to the amount of child support that remains owing. It should also be noted that the penalties that apply are payable to the Commonwealth and not the other parent. The rate of the penalty is the general interest rate charge under s 8AAD of the Taxation Administration Act 1953 (Cth), which at present is approximately 2.4%. The penalty is calculated on the unpaid balance of the debt owing for each payment period. This will be weekly, fortnightly or monthly depending on your child support arrangements.
Remitting late payment penalties
The Registrar can partly or wholly remit a late payment penalty regardless of whether or not they have been paid. This discretion will be exercised on a case by case basis and where it will further the objectives of the child support scheme. When attempting to get a late payment penalty set aside it is important that you can show you have attempted to mitigate your circumstances. Mitigating your circumstances can include making part payments of liabilities, borrowing money to fulfil your liabilities, making alternative payment arrangements with creditors and debtors or paying the outstanding arrears in full directly to the other parent.
Further, when considering applications for remittance, the Registrar must take into account what is fair and reasonable. The Registrar will consider your payment history, current income, necessary commitments and the circumstances which led to your failure to pay. For example, it would not usually be fair and reasonable for a parent to acquire assets in preference to paying child support.
Where you receive compensation for personal injury
When your personal injuries claim is settled the Child Support Registrar will issue a section 72A notice to the Solicitors acting on your behalf and to the Defendant’s insurance company. The Notice will require the Defendant’s insurer to pay any child support arrears before any settlement monies are paid to your Solicitors.
Therefore, it is important that you are aware of your child support obligations and that you notify the Department of Human Services if your circumstances change or any hardship you may be suffering as you could be liable to pay late payment penalties resulting in additional expense.
If you have any queries in regards to child support, feel that you have been unfairly issued a late payment penalty or have received a section 72A notice, please do not hesitate to contact our office.
