Media Release

12 May 2009

Extra $223.2 million in supporting separated families

In tonight’s Budget, the Australian Government has announced a new four-year funding agreement for the Child Support Agency.

The agreement provides an extra $223.2 million to maintain customer service standards and address the build-up of child support debt.

The Minister for Human Services, Senator Joe Ludwig, said this agreement builds on reforms undertaken in previous budgets and ensures the administration of the child support system is appropriately funded.

When separated parents meet their child support obligations, there is less need for taxpayer support through the family payments system. Accordingly, the funding will also save Australian taxpayers more than $100 million in Family Tax Benefit payments over four years.

“This extra funding will help reduce further growth in outstanding debts and maintain confidence in the child support system,” Senator Ludwig said.

“The global recession is placing families under increasing financial pressure and will also affect paying parents’ ability to make child support payments.”

“Through this funding, the Government is providing the CSA with the capacity to deal with the new challenges posed by these difficult times.”

“Adequate support and high-level customer service is needed to encourage parents to meet their ongoing child support obligations.”

“This Budget measure also ensures the CSA has dedicated resources to continue its comprehensive compliance program.”

Senator Ludwig said most separated parents do the right thing and provide the financial and emotional support their children need.

“The extra funding is also vital to support the CSA’s efforts in pursuing those separated parents who aren’t doing the right thing by their children,” Senator Ludwig said.

Media Contact

Joe Scavo — 0413 800 757 or (02) 6277 7200.