Minimum Annual Rate - MAR

Cards (23)

  • The minimum annual rate may be payable where the child support formula produces an annual rate below the relevant minimum annual rate, the parent does not have at least regular care of any child in the child support case, and the fixed annual rate of child support does not apply
  • The minimum annual rate exists to reinforce the principle that all parents must contribute to the financial support of their children
  • A parent may apply to have the assessment reduced to nil if their income is less than the amount of the minimum assessment multiplied by the total number of the parent's child support cases
  • Minimum annual rate
    The minimum amount of child support a parent must pay if the formula assessment is below this amount, they don't have regular care, and the fixed annual rate doesn't apply
  • Determining when the minimum annual rate applies
    1. Registrar makes an assessment
    2. Formula produces annual rate below minimum
    3. Parent doesn't have at least regular care
    4. Fixed annual rate doesn't apply
  • The minimum annual rate will apply until the end of the child support period, 28 days after the last day the minimum rate would have applied, or the day before a new rate is determined by a change of assessment, order or agreement
  • A parent has more than 3 child support cases

    The total amount payable is capped at 3 times the minimum annual rate and shared between all cases
  • Calculating the amount payable per case when a parent has more than 3 cases
    1. Take 3 times the minimum annual rate
    2. Divide by the total number of the parent's child support cases
  • If the care of the children is divided between a parent carer and one or more non-parent carers, or between 2 or more non-parent carers, the minimum annual rate is shared between the carers
  • Determining how the minimum annual rate is shared between carers
    1. If 2 or more carers have the highest percentage of care, they each get an equal proportion
    2. If 1 carer has the highest percentage of care, only they get the full minimum annual rate
  • Nominated period
    The period for which a parent applies to have the minimum annual rate reduced to nil
  • Applying to have the minimum annual rate reduced to nil

    1. Parent applies directly to court for a departure order
    2. Parent applies to Registrar to have it reduced to nil for a nominated period
  • The parent must satisfy the Registrar that during the nominated period they have very low income, less than the minimum annual rate multiplied by the total number of their child support cases
  • The information the parent must provide will depend on the circumstances of their case and when the application was made
  • Child support period (CSA Act section 66A)
    A parent must satisfy the Registrar that during the nominated period they have very low income, less than the minimum annual rate multiplied by the total number of the parent's child support cases
  • Application for reduction of minimum annual rate
    1. Parent nominates a period
    2. Parent provides information on income for nominated period
    3. Registrar calculates annualised income
    4. Registrar decides whether to grant application
  • Application for reduction of minimum annual rate
    • Amanda
    • Frank
    • Dalil
    • Fiona
    • Greg
    • Mandy
  • Annualised income
    (parent's income for the nominated period ÷ number of days in the nominated period) × 365
  • If the Registrar grants an application to reduce the assessment to nil, the Registrar can still amend or reconcile the estimated income, and the liable parent can make a further estimate of income should their circumstances change
  • If the Registrar refuses to grant an application for a reduction, the unsuccessful applicant must be notified in writing and may choose to object to the particulars of the assessment
  • If the other parent disagrees with the Registrar's decision to grant the application, they may object to the particulars of the assessment or apply for a change of assessment
  • Amending an assessment if the reasons to reduce the minimum annual rate to nil are no longer satisfied
    1. Registrar amends assessment from date of change in circumstances that led to section 66A no longer being satisfied
    2. If requirements of section 66A were never met, or met for less than 2 months, Registrar amends assessment from date minimum assessment was first reduced
  • The Registrar must notify the liable parent in writing that the assessment has been amended and that the minimum annual rate is now payable