9.3.4.20 Orders discharging late payment penalties
Orders discharging LPPs
A court exercising family law jurisdiction has no power to deal with LPPs (1.1.L.20). Therefore the Registrar is not required to give effect to an order that is invalid.
Despite this, the Registrar sometimes receives court orders made in proceedings between parents that direct the Registrar to reduce or remit LPPs. The Registrar will consider whether it is appropriate to reduce or remit the LPPs. The Registrar will consider 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 LPP (section 68(1)(c)).
See 8.2 for more details on when LPPs can be remitted.
Act reference: CSRC Act section 68