3.5.2 Orders discharging late payment penalties
A court exercising family law jurisdiction may not make an order discharging late payment penalties payable to the Registrar. If a court does make an order of this type, the Registrar is not bound by the terms of the order, but will consider remitting any penalties.
CSRC Act section 68
A court exercising family law jurisdiction has no power to deal with late payment penalties. Despite this, the Registrar sometimes receives court orders made in proceedings between parents that purport to direct the Registrar to reduce or remit late payment penalties. The Registrar is not required to give effect to an order that is invalid. The Registrar will, however, consider whether it is appropriate to remit the late payment penalties the order purports to discharge. The Registrar will take into account any evidence produced to the court about the payer's financial position when deciding if there are special circumstances that make it fair and reasonable to reduce or remit the late payment penalty (section 68(1)(c)). See 5.1.6 for more details on when late payment penalties can be remitted.