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2.10.3: Terminating events

Version 2.10, Last updated 5 April 2011 9:30am

Context

CSA must amend or end a child support assessment if a ‘child support terminating event’ happens.

Legislative references

Explanation

Definition of child support terminating events

The various 'terminating events' are listed in section 12 of the Assessment Act. CSA must amend or end an assessment to take into account a terminating event (section 74).

Child terminating event

A terminating event happens if the child of the child support assessment:

  • dies;
  • ceases to be an eligible child because the child is in the care of a person under a child welfare law (section 22 and regulation 4);
  • turns 18 (unless CSA has accepted an application for the assessment to continue beyond a child’s 18th birthday);
  • is adopted;
  • becomes a member of a couple (living with a person as the partner of that person on a genuine domestic basis or with someone they are legally married to) (section 5). A person cannot live with another person on a “genuine domestic basis” if they are aged under 16 years. This is because a person is living with another person on a genuine domestic basis if the relationship has the characteristics of the relationship of marriage and the persons are of marriageable age (FO v HAF [2006] QCA 555). Marriageable age is 16 years of age and refers to a person's capacity to marry pursuant to the Marriage Act 1961 (Cth) which is uniform across all States and Territories;
  • is no longer present in Australia, is not an Australian citizen, and is not ordinarily resident in Australia (and is not subject to an international maintenance arrangement); or
  • a second liability is registered for the same parents and child/ren (section 30AA(1) of the Registration and Collection Act).

Eligible carer terminating event

A terminating event happens if a parent or non–parent carer entitled to receive child support dies.

Terminating event in relation to a child

A terminating event happens in relation to a child if they leave the care of all parties to the child support assessment. That is:

  • both parents of the child cease to be eligible carers, i.e. they no longer have at least 35% care; and
  • there is no non–parent entitled to be paid child support in relation to the child (i.e. no non–parent carer who is entitled to child support because of a child support assessment) (section 12(2AA)).

Where a child changes care and a parent or non–parent carer continues to provide at least 35% care, a terminating event has not occurred and the assessment continues. Note that the non–parent carer must have applied for child support – if a child moves into the full–time care of a non–parent carer who has not applied for child support, there is a terminating event.

Example

M and F have been assessed in respect of the costs of their child A, and M has 100% care of A. On 2 February 2009, A moves from M’s 100% care to F’s 100% care. M advised CSA of this on 10 July 2009. This is not a terminating event but rather a change in care, as A is in the care of a party to the assessment. As the care change was notified more than 28 days after the date of event, it will only be given effect to from 10 July 2009, the date of notification.

Example

M and F have been assessed in respect of the costs of their child A, who is in M’s 60% care and G’s 40% care. G is a non–parent carer and is a party to the assessment. On 3 March 2009, A moved from M’s 60% care to G’s 100% care. M advised CSA of the care change on 19 April 2009. This is not a terminating event but rather a change in care, as A is in the care of a party to the assessment. As the care change was notified more than 28 days after the event, it will only be given effect to from 19 April, the date of notification.

Example

M and F have been assessed in respect of the costs of their child A, with M and F each having 50% care. A moves to G’s 100% care on 19 August 2009. G is not a party to the child support assessment, and does not apply for child support. F advises CSA of the care change on 29 November 2009. This is a terminating event and will take effect from 19 August 2009, the date of event.

See Chapter 2.9.5 for information about changes in care.

Liable parent terminating event

A terminating event happens if a parent liable to pay child support:

Terminating events in respect of an election to end an assessment; an end date of liability specified in a child support agreement; or reconciliation

In addition, a terminating event happens on a specified day if:

  • a parent or non–parent carer entitled to receive child support makes an election to end an assessment for the child from a specified day (section 151); or
  • CSA has accepted a child support agreement in relation to the child in which the parents and any non–parent carer agreed that the liability to pay child support is to end from a specified day (see Chapter 2.7); or
  • the parents of the child (to whom the child support assessment relates) become members of the same couple for a period of 6 months or more (see Chapter 2.10.1).

Terminating events and International Maintenance Arrangements

If an international maintenance arrangement applies in relation to a case, a terminating event happens when:

  • the parent liable to pay child support was a resident of a reciprocating jurisdiction and s/he ceases to be a resident of a reciprocating jurisdiction or Australia (section 12(3A)); or
  • the reciprocating jurisdiction in which the liable parent resides becomes an excluded jurisdiction (section 12(3B)); or
  • the carer entitled to receive child support was a resident of a reciprocating jurisdiction and s/he ceases to be a resident of a reciprocating jurisdiction or of Australia (section 12(2A)); or
  • from 19 July 2007 both parents cease to be resident in Australia (section 12(4B)).

Note: a child support assessment will not end when the carer ceases to be a resident of Australia or a reciprocating jurisdiction if the child is an Australian citizen, present in Australia or ordinarily resident in Australia. In that situation, no international maintenance arrangement applies in relation to the case and therefore section 12(2A) does not apply.

A child support assessment will end pursuant to the Australia–New Zealand Child Support Agreement (see Schedule 1 Child Support (Registration and Collection) Regulations 1988) if the carer entitled to receive child support becomes habitually resident in New Zealand. Under the terms of the Agreement, the date from which the assessment will end is either:

  • where either the carer, the payer or the Central Authority gives a notice in writing that the carer is habitually resident in New Zealand – the day before the receipt by CSA of that written notice (Article 5); or
  • where a New Zealand child support assessment is made in relation to the same parents and child/ren – the day before the start date of the New Zealand assessment (Article 7).

Effect of a child support terminating event

CSA must amend or end an assessment to take into account a terminating event (section 74). Generally, child support terminating events result in CSA ending an assessment from the date of the terminating event. However, where a person ceases to be an eligible carer because of a change in their percentage of care, CSA will amend the assessment and the case may continue.

Date of effect of a child support terminating event

If CSA is required to end an assessment it will end the assessment from the date of the terminating event, regardless of the date that CSA was notified of the terminating event (section 74).

Example

M and F have been assessed in respect of the costs of their child A. A marries at age 17 on 6 September 2008. CSA is informed of the marriage on 7 December 2008. CSA ends the assessment for M and F from the day A was married, 6 September 2008.

Example

M and F have been assessed in respect of the costs of their child A, who lives with M. A goes to live with G. G does not make an application for a child support assessment. CSA ends the assessment for M and F from the day A left M's care.

Reconciliation

A liability to pay child support will be suspended for a period of up to six months after reconciliation when CSA becomes aware that the parents have reconciled. See Chapter 2.10.1 for information about suspension determinations when the parents reconcile.