Annual Report 2006: Part two - Delivering on our outcomes
Child support
Child support is money paid by parents not living with their children to help financially support those children. Currently, the child support scheme serves as an intermediary for approximately 172,0008paying parents and 177,500 custodians, who support an estimated 291,000 children.
Since the scheme began in 1992 we have collected 87.6% of the total of $3.3 billion child support assessed, compared to the 40.7% collection rate achieved before the 1992 scheme. Our collection rates are comparable with those of other countries9.
This year we collected $341.3 million in child support payments, compared to $309.1 million for 2004-05. This figure includes assessments and penalties collected for both this year and any previous years, less any refunds. 21% of the amount collected was for previous year assessment arrears and penalties.
For the 2005-06 year, we collected $271.2 million (74.1%) of the $366.1 million child support assessed, $7.8 million more than last year. Of the amount collected, 61.2% was paid in full and on time.
Figure 13
Child support collected versus assessed (current year)
Child support distribution
This year we paid $151.0 million of child support to custodians and $190.4 million to the Crown to offset benefits paid to custodians through the Ministry of Social Development. Payments to the Crown include penalties as well as assessments paid.
Figure 14
Total child support distributed
8. Paying parents with a current liability or debt (including cases we administer under the reciprocal agreement) and custodians with a current or outstanding entitlement. There are more custodians than paying parents because some paying parents are linked to several custodians (the reverse also applies).
9. Source: Child support schemes - Australia and comparisons (Child Support Agency, Australia, 2006).
Date published: 06 Nov 2006
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