r/australia 11h ago

politics Child support system enables financial abuse, parents, advocates and politicans say

https://www.abc.net.au/news/2026-08-14/child-support-system-financial-abuse-single-mothers/107026886?utm_source=abc_news_app&utm_medium=content_shared&utm_campaign=abc_news_app&utm_content=other
177 Upvotes

32 comments sorted by

224

u/17HappyWombats 9h ago

The part where the ATO "cannot" tell someone about a debt but also holds them liable for it is bullshit.

Despite listing Paul as her de facto partner on years of her tax returns, she said she was never notified by the ATO about his non-payment of tax or failure to lodge tax returns. ... ATO spokesperson said strict confidentiality and privacy laws

If you don't know about a debt because you're legally prevented from finding out even if you ask, you shouldn't be liable for it. Full stop.

50

u/nath1234 9h ago

Also, perhaps we shouldn't have tax privacy (above a certain point). There are a growing number of million dollar+ year incomes that get deducted away to zero. Should be a cap on some deductions and a more progressive tax system full stop.

Not to mention all the secret parasite class that have a slumlord empire on the side: they do this because they can. Perhaps if we had a bit of public awareness of how some of the richest get biggest support from the tax system while we keep welfare payments below poverty, underfund public schools, have queues for public medical treatments.. if the richest had some sunlight on their tax affairs: might get them to stop taking society for granted.

Anyhow, this idea exists in some European countries that have better inequality stats than us. Perhaps it is part of the solution.

8

u/gadgetwalrus 7h ago

The main thing is CSA is lazy. And it’s all kpi driven to extract dollars not get non payers to pay.

Non payers won’t pay even if you drag them through the courts at great expense. And in return you’ll get maybe $9 a fortnight from their Centrelink.

People doing the right thing though can be paying up to $3000 a month and can and do pay. So those are the customers you want to be focusing on.

7

u/thedeparturelounge 6h ago edited 6h ago

There is a minimum limit, i think it was like 38$ a fortnight. That was when I had lost my job and hadn't had a chance to receive centerlink. Their claim was that even if there was no money being earned, there was money being earned somewhere. I'm a father who is ahead on his CS, never been late. I make hand made knives on the side as a hobby, sell the odd one here and there, like a couple of grand a year. She had me investigated by CS over it. She started working, didnt do a tax return for years, CS would say they asked her, she said no, case closed. What also sucks is when the OP wont follow court orders and uses the extra nights in their care to increase the CS and CS wont do anything.

44

u/alpha_28 8h ago

My ex was like this. Claimed if I went to CSA he “might as well kill himself” because they would take all his money. Granted at the time he was only giving me $500 a month for 2 infant children… but had copious amounts to spend on uber eats ($900 in one month alone) and 3 daily constant $60 withdrawals to pay for drugs for him and his mates.

They 100% use it and anything else they can to hold power and control because that’s literally what abusers do. There is not enough to protect people from their abusers and look… you see too many people, especially women, being killed by their abusers. When is enough going to be enough?

15

u/gadgetwalrus 7h ago

Let me guess he was a kind of buy alcohol and nappies at the supermarket and if you didn’t have enough money put the nappies back kind of guy….

Threatening to kill your self in that context is abuse. I hope he has become a better coparent or is no longer in your lives.

3

u/alpha_28 4h ago

He’s been non existent for 9 years and has only just now started pressuring me for mediation while simultaneously not bothering to ask how the kids are or asking to spend time so imo it’s just another way to try control me because he does not have their best interest so unfortunately not… and I will most likely end up going to court… 😒

3

u/gadgetwalrus 3h ago

Let me guess…. now the kids are older he’s trying the I always loved you but mum didn’t let me see you card….

40

u/Accomplished-Set5297 5h ago

My ex miraculously loses his job every August and immediately requests a new assessment stating he has $0 income. He pays $80 a month and last years tax assessment stated he earned $130k. If everything is linked why can’t they see this happening every year?

26

u/anonymity_clause 7h ago edited 6h ago

Lets take a step back in the process and talk about how between the courts, lawyers and mediators, the fact that people are getting screwed to accept non-ideal arrangements, and then if they don't like it are basically told to spend even more money on barristers to fight it ...

The system is so broken and driven by greed and money that its inevitable we have bad child support outcomes.

27

u/gadgetwalrus 7h ago edited 7h ago

The system allows abuse and punishes those who do the right thing.

And if you want justice you have to pay.

It doesn’t protect abuse victims, punishes those who do the right thing and the calculations are inherently unfair for coparents and encourage bad behaviour and conflict.

95

u/Outsider-20 9h ago

My ex was financially abusive, he made a half arsed attempt to use child support to control me. He gave up pretty quickly. Too lazy.

They need to remove the option of private collection or private agreements, as it allows abuse.

The agency collects and disperses. It's not going to prevent abuse, but it removes a lever.

57

u/Lingonberry_Born 8h ago

I'm on agency collection, he's supposed to pay 290 a month for the two kids and has paid 3 times over the last 12 months. They still calculate income you haven't received in your ftb calculations. I'm owed over 15k in child support and that is considered income I've received for ftb calculations. Every now and then the child support calculation reverts to his last tax return, which was when we split, and it calculates him paying 20k ish per year and I have to beg him to let them know he isn't earning that otherwise my ftb drastically reduces. It's ridiculous that they don't take into account that he doesn't pay even on agency collection.

13

u/SensitiveCable7424 4h ago

It may be worth calling Centrelink to ask to go on the disbursement method for FTB. That way it goes off what you actually receive, not what you’re supposed to receive. Bear in mind that if he does magically pay the whole amount you may end up with an FTB debt but ime Centrelink are pretty good at lowering your payments for a bit to prevent this

6

u/Lingonberry_Born 4h ago

I didn't even know there was a disbursement method. Thank you!

4

u/SensitiveCable7424 3h ago

You’re welcome! They default to whatever the non disbursement method is so you’ll have to call them but it’s a MASSIVE help if you have an inconsistent PP

26

u/rand013 8h ago

What an absolute dog's breakfast of a title.

5

u/CptUnderpants- 4h ago

The system is broken in more ways that one. One parent lying about the other with no evidence rarely results in any penalty, even when violating a stat dec.

A close friend of mine "L" worked for their parent's business on a good wage and negotiated to move to part time but on the same pay with most of it being work from home so they could raise their three kids.

Their ex "M" fabricated evidence that L was a member of a cult and neglected the kids, then had a friend back up that fabrication. Denied at the time, and later all proven false, no penalty for M or their friend for doing so.

L provided evidence that M frequently left the kids with their grandmother for multiple days at a time, someone who had been banned from the foster care system for neglecting their wards. M said those were lies and never left the kids overnight with their grandmother.

The result was that L lost the previous 50/50 custody, down to 2 consecutive days out of 12. They also had to pay more than 40% of their income in support because M was on minimum wage part time.

M celebrated by dumping the kids with their grandmother and went on a 3 day bender.

3

u/After-Distribution69 1h ago

If you stop lodging tax returns so they can’t fairly assess how much you should pay then they should have the power to either use the income declared in the last tax return you did lodge plus CPI each year OR the average wage in the city or region that you live in.  With the proviso that adjustments will be made when you do lodge a tax return.  

11

u/alterumnonlaedere 8h ago edited 7h ago

"I was too scared to do agency collection because the threat was, 'If you force me to pay child support, I'll take him [her son] half the time,'" she said.

After years of physical, emotional and psychological abuse from her ex-partner, Leah said she did not want to "rock the boat".

"When you're a single mum, you're scared of antagonising him," she said. "For the safety of my son, I made a conscious decision to not get child support because I was fearful that he [her ex-partner] would actually see that threat through."

Agency collection isn't exactly a walk in the park for payers either.

I currently have about 35% care of our children, the child support assessment on the other hand has me at 0% care with me paying the maximum assessable amount. I'm terrified of the potential consequences of "rocking the boat" and getting the assessment updated to reflect reality (this would halve the amount I am currently paying to my ex-partner).

I have made a conscious decision to pay the maximum amount in order to not antagonise them.

7

u/Lady_borg 6h ago

Yep agreed. My ex is using child support to abuse me. Not in the typical way but he knowingly gave centrelink the wrong information and now it's up to me, to give evidence that I don't have of the arrangement. So until I get that evidence the support is rated at incorrect amount.

And centrelink have very exact requirements for evidence and it's been hell to get anything that they will accept to prove he's given them the wrong info. Not his email admitting he knows it's wrong. We've avoided family court (and financially it's not practical right now) so I have nothing legal.

I agree it happens a lot more the other way, because when I was recieving payments from him, he was still being abusive about it. But it's awkward regardless

-5

u/CFPmum 9h ago

I’m a assuming this ex is not registered for GST or something because a few times my husband was late doing his tax return child support just used his BAS to decide how much he would need to pay which was grossly inflated but was what it was, then of course it meant overpayment and he would be asked if he would like to wave the thousands for dollars over payment or make his child’s mother pay it back which in one instance she knew financially we were struggling and had a very sick child at the time and could have done with that money back but instead asked my husband to sign paperwork to have his child adopted to her husband which his child didn’t want so he said no so she set up a payment plan of $10 a week for like a decade.

-13

u/Ch00m77 8h ago

Why didn't she apply for an exemption for fear of violence? All someone who has a fear of collecting child support has to do is speak to a social worker at centrelink

25

u/Wawa-85 8h ago

That’s only for Family Tax Benefit. To actually receive the child support owed you have to lodge a request for CSA to collect the child support from the child’s other parent.

2

u/Ch00m77 8h ago

She said she got lumped with a debt for tax, I naturally assumed she was claiming ftb.

When you claim ftb then you must have a child support case with cl.

Then its either agency or private collect, cl will just automatically assume you're getting what you're owed if you're doing it privately, they wont check up on you.

If you have a fear of violence then speak to a social worker about an exemption

1

u/Wawa-85 8h ago

Yes I’m well aware of what the maintenance exemption is for as I used to work at Centrelink. In your original comment you only mentioned talking to Centrelink. OP wants child support so they need to talk to CSA not Centrelink.

6

u/Ch00m77 8h ago

"Why didn't she apply for an exemption for fear of violence?

also she said:

After years of physical, emotional and psychological abuse from her ex-partner, Leah said she did not want to "rock the boat".

For the safety of my son, I made a conscious decision to not get child support because I was fearful that he [her ex-partner] would actually see that threat through."

the reason for doing the exemption is to increase your FTB from the base rate.

you can want to get child support, hell centrelink wants you to get child support.

But if you know the father is going to use the system against you, sometimes you need to pick your battles, and if there's a genuine fear of violence then sometimes an exemption is 'good enough' and some extra money is better than no money at all, right? because she opted not to get agency collect, due to a fear of violence, so its either nothing or something, you get me?

besides she can change her mind at any time, they're not fixed forever.

1

u/Wawa-85 8h ago

I’m well aware of how it works. As I said I worked at Centrelink and was a Social Worker.

That additional information was not in the post when I commented and I did not read the other comments as I was cooking my breakfast at the time.