Joe Hockey (North Sydney, Liberal Party, Minister for Human Services) Share this | Hansard source

The assessment of the cost of raising a child under the existing formula is based on the payer’s income. If there is a default, the default lies with the payer, not the payee. That is because it is the payer who is not meeting their legal obligations, which are based on their income. Of course, from 1 July 2008, the formula will change. This is the fundamental principle. Currently, the formula is based on the payer’s income. From 1 July 2008, the formula will be based on the cost of raising the children. This is a substantial change which should address many of the complaints. If people are defrauding the system in relation to a payee’s income, we are happy to look at that, but my understanding is that the formula is based on the payer’s income, the non-custodial parent’s income, and that is the income that we are going to be looking at.

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