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Devaluing children in their 'best interests' : Comments
By Elspeth McInnes, published 17/6/2005Elspeth McInnes argues the losers to the new child support recommendations will be the children
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In reality, there are a number of distinct payer groups whom the system treats quite differently.
a) Payers who pay according to the formula, based on their true earnings.
b) Payers who pay according to the formula, but who use various methods to reduce their taxable incomes.
c) Payers whose liability has to be estimated, because the CSA has no reliable data on their taxable incomes.
d) Non-payers, who simply don't pay.
A fair system will contain a fair formula, and all liable parents will be in the first payer group.
The report recommends that the CSA be given resources to address the impacts of mechanisms used by people in the (b) group.
The ATO can already levy penalties for non-lodgement of tax returns, and can also take a person to court for refusing to comply with the requirement that a tax return by filed.
The CSA already has powers to deal with non-payers, although it appears those powers are not used very effectively.
Once people are compliant payers, in the (a) group, the issue becomes one of fairness. Essentially the question is one standard of living should the child receive after separation.
There are those who think the child should have the standard of living that they would have had had the relationship not failed. This requires so many assumptions as to what would have happened as to be almost meaningless.
Those custodial parents who look on with jealousy at their ex partner's post separation standard of living need to ask themselves a difficult question - are they willing let the other parent have custody so that the child can benefit? Of course, this is not always an option, but often it is. There is thus an element of choice for the custodial parent. If they're tolerating a lower standard of living, it's because they find some other value therein.
...continued.