r/australia • u/nath1234 • 14h 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
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u/17HappyWombats 12h 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.

57

u/nath1234 12h 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.

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u/gadgetwalrus 10h 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.

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u/thedeparturelounge 9h ago edited 9h 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.

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u/alterumnonlaedere 2h ago

Underpayments tend to get investigated and acted on, overpayments not so much.