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6.1.4 Agreements that cover periods before & after 1 July 2008 & transitional agreements

Background

Significant reforms were made to the CSA Act, including the child support (1.1.C.60) agreement provisions, from 1 July 2008. This page deals with arrangements for agreements submitted for acceptance on or after 1 July 2008 that are intended to cover periods both before and after that date.

This topic also deals with transitional agreements, which relates to agreements that existed prior to 1 July 2008.

On this page

Decision on application for acceptance of agreement to cover periods before & after 1 July 2008

Some child support agreements lodged with the Registrar on or after 1 July 2008 will affect child support assessments (1.1.C.70) for periods prior to 1 July 2008, as well as periods from 1 July 2008. In these circumstances, the child support agreement will be treated as 2 separate child support agreements - one for the period prior to 1 July 2008 and the other for the period from 1 July 2008.

The pre-1 July 2008 legislation will be applied in determining whether to accept the first child support agreement - for the period prior to 1 July 2008. The current legislation, as outlined in this chapter, will be applied in determining whether to accept the second child support agreement - for the period from 1 July 2008.

This may mean that one of the agreements is accepted and the other is not accepted

Act reference: Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2008 Budget and Other Measures) Act 2008 Schedule 6 item 16

Transitional agreements

These are child support agreements that were made and accepted by the Registrar prior to 1 July 2008 and continue to have effect from 1 July 2008. These agreements are considered to be binding child support agreements (1.1.B.30). However, some different rules apply to these agreements as compared with binding child support agreements made and accepted by the Registrar after 1 July 2008 discussed above.

Prior to 1 July 2008, the Registrar reviewed all child support agreements that would be in force on that day (Child Support Legislation Amendment (Reform of the Child Support Scheme - New Formula and Other Measures) Act 2006 (the Reforms Act Schedule 5 item 73)).

The Registrar considered each agreement to determine whether the agreement contained provisions that would continue after 1 July 2008. Section 11 of the Child Support Reform (New Formula and Other Measures) Regulations 2018 specifies which provisions of an agreement would continue to operate after 1 July 2008.

Where the continuity of the agreement provisions are not affected by the changed legislation, then it became a special type of binding child support agreement known as a transitional child support agreement (the Reforms Act Schedule 5 item 74(1)(b)(i)).

The Registrar will not issue notional assessments (6.3.2) (1.1.N.20) in relation to transitional child support agreements. Where the assessment is determined under a transitional agreement, a parent's (1.1.P.10) entitlement to FTB Part A will be assessed on the basis of the agreed amount of child support pursuant to the transitional agreement.

Where a child support agreement contained provisions that do not operate after 1 July 2008, for example, based on components of the previous child support formula (1.1.C.110) that no longer exist, it was terminated by the Registrar as at 30 June 2008 (the Reforms Act Schedule 5 item 74(1)(b)(ii)). An administrative assessment (1.1.A.30) based on the child support formula was made for the period after 1 July 2008, where an administrative assessment was in place before the child support agreement was accepted. If no administrative assessment was in place before the child support agreement was accepted then the Registrar's decision to terminate the child support agreement has the effect of a terminating event (the Reforms Act Schedule 5 item 74(2)).

The Registrar notified the parties in writing of the decision to terminate or make binding each such agreement (the Reforms Act Schedule 5 item 74(3)). The parties were also advised of their objection (1.1.O.10) and appeal rights (the Reforms Act Schedule 5 items 74(4) to (6)).

A transitional child support agreement can be terminated:

  • by the same methods as other binding child support agreements (see 6.4.2 for further information), or
  • by an agreement in writing signed by both parties to the effect that the previous child support agreement is terminated (the Reforms Act Schedule 5 item 75(6)).

Act reference: Child Support Legislation Amendment (Reform of the Child Support Scheme - New Formula and Other Measures) Act 2006 Schedule 5 item 73 Application of amendments in relation to child support agreements, Schedule 5 item 74(1)(b)(i) Before 1 July 2008, the Registrar must …, Schedule 5 item 74(1)(b)(ii) Before 1 July 2008, the Registrar must …, Schedule 5 item 74(2) If, in accordance with …, Schedule 5 item 74(3)) After the Registrar makes …, Schedule 5 item 75(6) Terminating deemed binding child support agreements

Child Support Reform (New Formula and Other Measures) Regulations 2018 section 11 Corresponding rights and obligations for transitional agreements

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