Fixed annual rate not to apply applications 277-03090000

From 1 July 2008, a FAR applies to parents in certain circumstances will be assessed to pay a FAR.

The FAR is payable by a parent for a child if:

• the parent did not receive an income support payment in the last relevant year of income, and
• that parent's adjusted taxable income for the last relevant year of income is less than the Parenting Payment - single maximum basic amount as at 1 January of that year, or the Registrar has accepted an estimate of the parent's current income and the estimated income is less than Parenting Payment - single maximum basic amount as at 1 January of that year, and
• that parent has less than shared care of the child

Note: if a parent's adjusted taxable income has been set at a particular amount through an income amount order as part of a change of assessment process (Child Support Assessment Act S98S(1)(g)), the fixed annual rate will not apply. This is because their adjusted taxable income has not been calculated under Child Support Assessment Act S43 (Child Support Assessment Act S65A(1)(b)(i)) See References page for links.

Parents assessed to pay the FAR can apply to have the FAR not apply to their assessment. If they are successful, their assessment will be either the Minimum Annual Rate (MAR) or nil, depending on the parent's percentage of care of the children.

If a parent is assessed but not required to pay the FAR, as the other parent is assessed to pay a higher rate, they can still apply for the FAR not to apply to them.

For example, Marian and Donald are the parents of Mary and David. Marian cares for Mary full time and Donald cares for David full time. Marian is assessed to pay the FAR for David and Donald has been assessed to pay $3,000 for Mary, so Donald has the overall liability. Marian can still apply to have the FAR not apply in respect of David.

Note: if a parent applies to reduce their assessment from the MAR to nil, see Minimum annual rate to nil - Reducing child support assessments.

The authorisation for a decision to accept, refuse or amend an application for a 'fixed annual rate not to apply' is at the SO3 level.