Update to the population impact of the new child support formula

This updated analysis details changes over the first six months’ operation of the new child support formula.   A key objective of the child support reforms is to improve compliance with child support obligations. This includes not only ensuring that parents pay their full assessment on time, but also that the assessment is an accurate reflection of a parent’s capacity to pay. With this in mind, the Child Support Reforms provided additional resources for enforcement activities which, to date, has yielded $235 million in extra child support since the measures began in July 2006.  From 1 July 2009 the Child Support Agency has been provided with a further $223.2 million to maintain customer service standards and address the build up of child support debt.   This report compliments the August 2008 report, Report on Stage Three Changes to the Child Support Scheme, which provided population-level impact of changes to the Child Support Scheme that took effect on 1 July 2008, based on the combined outcome of the child support and Family Tax Benefit (FTB) changes. Financial outcomes of the child support changes cannot be viewed in isolation from FTB. This is partly because changes in the amount of child support received may alter the amount of FTB payable, and partly because the reforms to the child support system included important changes to FTB eligibility rules