Media Release
Incentives recoup millions for children
30 August 2006
Minister for Human Services, The Hon. Joe Hockey MP, has applauded new figures from the Child Support Agency that show its debt collection initiatives have netted millions in previously unpaid child support.
The Child Support Agency’s Late Payment Penalty Incentive, combined with the agency’s Intensive Debt Collection initiative, have together netted more than $93 million in previously unpaid child support.
“This is great news for Australian children,” Minister Hock ey said. “ As Minister responsible for the Child Support Agency, I am pleased to see our incentives are encouraging parents to pay their debts off.”
“In Victoria alone, since July 2003, a total of 11,661 parents have paid almost $27 million in owed child support under the initiative,” Minister Hockey said.
(Eds: A state-by-state breakdown of money collected since the initiative began is given at the end of this release.)
“The initiative began in mid-2003 to target 66,000 parents owing a total of $130million in long-term child support debt.
“Included were about 23,000 parents who owed more than $10,000 and 15,000 parents who had never paid any child support over the life of their case.”
The Child Support Agency recently announced it was seeking to hire up to 120 additional financial investigators to boost its compliance operations.
“Most parents do the right thing and financially support their children after a separation, but there are a minority who try to avoid paying.”
Child Support Agency (CSA) National Compliance Manager Angela Tillmanns said that parents who have a debt with the CSA have until the end of December 2006 to commit to pay their debts off in order to have their late-payment penalties cancelled.
The Late Payment Penalty Incentive allows the late payment penalty to be cancelled if the parent enters into, and adheres to, an arrangement to repay their debt in a timely manner.
“Almost 65,000 children have benefited from this initiative since its inception in mid-2003 with nearly one-in-five parents contacted taking up this offer,” said Ms Tillmanns.
“Most parents who pay child support (78 per cent) owe little or nothing in child support. Sometimes parents, for whatever reason, fall behind in their child support payments. In these cases CSA works closely with them to work through any difficulties and help them come to a payment arrangement.”
CSA can collect overdue child support through a number of ways, including:
- negotiated voluntary payments
- direct deductions from wages
- interception of tax refunds
- legal action to enforce payment of money owing.
“The Australian Government has provided CSA an extra $168 million in funding to increase compliance activities over the next four years,” said Ms Tillmanns.
As a result, the CSA’s major increase in compliance activity will recoup an extra $460 million over four years in child support payments for Australian children.”
Ms Tillmanns reminded people to contact the Australia Government Services Fraud tip-off line if they suspect someone is fraudulently collecting benefits – phone 13 15 24.
| Region | Attributed Credits | Total Cases |
|---|---|---|
| NSW/ACT | $25,037,998.88 | 12,840 |
| QLD | $19,549,292.28 | 7555 |
| SA/NT | $9,161,281.71 | 3859 |
| VIC/TAS | $26,894,212.98 | 11,661 |
| WA | $12,358,930.93 | 3184 |
| Total | $93,001,716.78 | 39,099 |
Case Study
A small child support debt can quickly turn into a large one. Initially the parent might simply procrastinate, ignoring letters and calls from CSA officers, avoiding anything that relates to the pain of the broken relationship. Eventually they will open those letters, and may be shocked at how much debt has grown, and how much time has elapsed.
The debt never goes away. It accumulates every month, and late payment penalties are added. If the parent never addresses the debt, it will be cleared by their estate!
Many parents feel great relief when they finally face up to the debt and put in a process to pay it off. And in many cases, the repayment of that debt leads to the re-establishment of contact with the children and working relationship with the other parent.
Earlier this month, the CSA tracked down a building industry contractor who had accumulated a debt of more than $68,000.
This parent had never voluntarily paid any child support, although the CSA had intercepted tax refunds.
The CSA did not have a current address and had not been able to make contact with the parent for three years. A breakthrough in the investigation led two CSA officers to visit the parent at home.
The parent – in this case a father – said he was relieved that the CSA had caught up with him, and he was pleased to get “it off his chest”.
Income information provided by the customer reduced his outstanding child support debt by $16,000. The CSA officers negotiated a payment arrangement of $100 per week with the customer, which he is adhering to.
The children involved now have a chance at an improved lifestyle, and the greater opportunity that goes with it.
Media Contact: (07) 3001 4633 or 0419 448 306.
Media inquiries should be directed to: media@csa.gov.au.