Can child support compliance be improved by the introduction of a 'fairer' child support formula and more rigorous enforcement? The recent Australian experience

Abstract

Child support compliance continues to be a thorny policy issue. In Australia, major changes to the Child Support Scheme were introduced between 2006and2008, featuring a markedly different and purportedly fairer'system for the calculation of child support. Extra resources were also provided to the Child Support Agency (CSA) to ensure that child support is paid in full and on time. Did these initiatives lead to greater compliance by payers with their child support obligations? This article explores this question by examining child support compliance among several national random samples of CSA clients just prior to, 1 year after, and3 years after, the introduction of a new child support formula on I July 2008. The new formula and strengthened enforcement regime appear to have had very little impact on compliance behaviour in Australia. Show more