Australia’s child support scheme had operated since 1988, but by 2023 ministers and MPs said legal loopholes were stopping Services AustraliaThe government agency that administers child support on behalf of the Registrar and handles collection and case administration. from collecting some unpaid debts through wages after cases ended, allowing some debtors to seek overseas travel by offering security, and pushing some low-income parents onto inflated default incomes. Building on measures first funded in the 2021-22 Mid-Year Economic and Fiscal OutlookA budget update that is used here because earlier funding for stronger child support compliance was announced in it., the bill was introduced to tighten debt recovery and income rules, then passed in June 2023 so those collection and assessment changes could become law.
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1988
Australia establishes the child support scheme
The Hawke government created the national child support scheme to make regular financial support from both parents more reliable after separation.
Hansard ↗
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2021-22
Budget funding backs stronger child support compliance
The former coalition government committed $7.8 million in the 2021-22 Mid-Year Economic and Fiscal OutlookA budget update that is used here because earlier funding for stronger child support compliance was announced in it. to recover child support debts in more circumstances, including two measures later carried by this bill.
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29 Mar 2023
Government introduces a bill to close child support loopholes
The government said the bill would fix gaps that hindered debt collection and unfairly affected low-income parents, beginning its parliamentary push for reform.
Parliamentary timeline ↗
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09 May 2023
Government says the changes could return more than $160 million
During debate, Labor said the bill would close loopholes and recover more than $160 million of unpaid child support for single parents and their children.
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15 June 2023
Parliament passes the bill
Both houses passed the bill in the same form, clearing the way for the new debt recovery, departure prohibition and income assessment rules to take effect.
Parliamentary timeline ↗
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23 June 2023
Royal AssentThe final step that turns a passed bill into an Act of Parliament. turns the bill into law
Royal AssentThe final step that turns a passed bill into an Act of Parliament. completed the bill’s passage and made the child support changes an Act of Parliament.
Parliamentary timeline ↗