Child Support Scheme in Australia: Policy, Impact, and Reforms Report

This report provides an in-depth analysis of the Australian Child Support Scheme, focusing on its purpose, policies, and impact on society. The scheme, initiated in 1988, aims to ensure financial support for children whose parents are separated or divorced. The report outlines key amendments, including those made in 1993, 2003, 2006-2008, and 2014, which aimed to improve the scheme's effectiveness and fairness. These changes addressed issues like minimum payments, income assessments, and parental responsibilities. The report also assesses the scheme's impact, noting increased court cases and broader child support arrangements, which have benefited a significant number of children. However, it also acknowledges negative impacts, such as loopholes exploited by some parents and the challenges faced by single parents. The conclusion highlights the scheme's importance in supporting child welfare, considering individual parent's financial capabilities and incorporating tax reforms during liability calculations. References to relevant academic research are included to support the analysis.

RUNNING HEAD: SOCIOLOGY
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Sociology

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Introduction
This report aims on Australian public policy that target children group that is “Child
Support Scheme”. This scheme was introduced by the government of Australia for welfare of
children who are suffering because of separation of their parents or because of divorce. The
below sections highlight the Child support scheme amendments and changes that were made in
order to ensure the more outcome of this scheme. Further, the report highlights different reforms
in this scheme and impact that this scheme had on the society in Australia.
Australian Public Policy
Child Support Scheme
Child Support Scheme purpose is to ensure that children whose parents are separated get
the appropriate level of financial support. In Australia, DSS (Departmental of Social Services)
has the responsibility to take steps to improve the scheme and to ensure children get proper
support through this scheme. In this scheme, parents of Children apply for child support
facilities and assessment that includes collection and transfer of fund to children on time. The
scheme was started in 1988 in order to protect the children after divorce of their parents.
Australia was facing issues related to the poverty of children and women following divorce and
separation and the increasing expenditure by the government for maintenance of children where
the other parent did not contribute a single penny for their upbringing (Cook, McKenzie &
Knight,2011).
Further, child support scheme run by the Department of human resources in the Australia.
The scheme ensures the upbringing of children get never affected because of separation of their

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parents. The act ensures that children get the right and facilities that they are liable for from their
parents. This scheme works to support children along with that all the concerns of parents are
taken into consideration. In a nutshell, this scheme aims to make sure that children get proper
financial aid, both parents take care of children even after separation, ensures on time payment to
children and equal responsibility to parents.
Changes in Policies
The scheme was launched in 1988, after that some changes that were made in the
scheme included; a major inquiry was conducted in 1993 for effectiveness and the operation of
the scheme and in that inquiry 163 recommendations were given to enhance the scheme. The key
changes were the introduction of minimum payment $260 a year, an increase to the payer
‘exempt income amount’ for self-support, a reduction to the payee ‘disregarded income
statement, the ability to credit up to 25 percent of child support liability and introduced internal
objectives process (Vnuk,2017).
In 2003, further changes were also made that included the child custody arrangements at
the time of family breakdown and after that ministerial taskforce established to examine the child
support formula. In 2006 to 2008 major changes in the scheme were made as recommended by
Taskforce. That included increase in the amount of liability from 25 percent to 30 percent,
introduced fairer assessment of parents capacity to earn, providing separated parents time limit
up to 13 weeks to think on the decision, and flexible arrangement and legal support to parents
who settle the matter through agreements (Bandra, Sailey, Mathiesen, McCarthy & Jones,2018).
In March 2014, an inquiry was conducted in which it was analyzed that child support
scheme worked well in majority of cases but again 25 recommendations or changes that

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enhanced the effectiveness of the scheme were made that included administration of the scheme
by DHS, funding of family support services, family law, and the enforcement of tax return
lodgment. With these amendments this scheme provided equitable treatments for around
200,000 child support parents (Bandra, Sailey, Mathiesen, McCarthy & Jones,2018).
Impact on Society
The impact of this scheme is felt as average case in court increased to 40% as earlier only
26% of cases were registered regarding this issue. This indicates that with the help of this
scheme Australian government impacting positively on the society. Private collect cases
accounted to 52.6 percent of the active caseload. (Skinner, Cook & Sinclair,2017). Further, these
amendments resultant in broadened child support arrangements. Hence, with the help of this
scheme 781,026 children got proper care and facilities for them and with that singe parents also
get support of their another partner.
However, this scheme has some loop holes due to that there is also negative impact on
the society. An example of s single parent, she has limited income and took responsibility of her
daughter after separation. However the children liability calculation includes income tax
statement into consideration. His husband showed less income and due to that payment amount
decreased. This impacted on the cost of living of mother and daughter. Hence, more people are
taking advantage of this scheme in negative way. The huge battle ground for that Department of
Human services was that two third of paying parents have no debt and they are not liable to pay
for their children upbringing. This indicates that people are taking the advantage of tax
consideration and manipulating the accounts in order to reduce children payment liability
(Vnuk,2017).

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The changes that are made in scheme leads to broader outcome for the society as earlier
only children were taken into consideration but after different reforms implemented the focus of
the scheme is also on tax considerations and single parent responsibility and capability to take
care of children (Luetjens, Mintron & hart,2019).
The Child support scheme proves to be beneficial for the society as this scheme consider
children welfare, individual parent’s income capability and also include tax reforms during
calculation of children liability by parents. The most important source of income for separated
parents are salary and wages as 86 percent of payers relies on this income sources (Luetjens,
Mintron & hart,2019).
Conclusion
It is concluded from the report that Child support scheme that was launched in Australia
targets Children who suffers when their parents separated or get divorced. This scheme launched
in 1988 and after that for welfare of children to enhance the result of this scheme various
changes were done accordingly. Further, on time amendments and changes in the policy leads to
positive changes in the society in Australia. Hence, Australian public policy and in that child
support scheme prove to be effective and with that helping the target clients that is Children to
improve their lives.

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References
Bandara, W., Bailey, S., Mathiesen, P., McCarthy, J., & Jones, C. (2018). Enterprise business
process management in the public sector: The case of the Department of Human Services
(DHS) Australia. Journal of Information Technology Teaching Cases, 8(2), 217-231.
Cook, K., McKenzie, H., & Knight, T. (2011). Child support research in Australia: A critical
review. Journal of Family Studies, 17(2), 110-125.
Luetjens, J. C., Mintrom, M., & t Hart, P. (2019). Public Policy Success: Lessons From Australia
and New Zealand. ANU Press.
Skinner, C., Cook, K., & Sinclair, S. (2017). The potential of child support to reduce lone mother
poverty: Comparing population survey data in Australia and the UK. Journal of Poverty
and Social Justice, 25(1), 79-94.
Vnuk, M. (2017). Separated mothers with a child support liability in Australia: does the gender
of the liable parent matter for compliance?.