Parents failing to submit tax returns are skewing child support payments
Experts warn that many parents in Australia avoid their full child support obligations by failing to submit tax returns, with some engaging in cash-in-hand work or using business structures to reduce payments. Services Australia referred over 168,000 parents to the ATO in 2022-23 for overdue returns. Non-compliance with tax lodgements is being recognised as a form of economic abuse, disproportionately affecting women, who make up over 80% of child support recipients. Women’s Legal Services Australia is calling for urgent reforms, including stricter enforcement and a government child support guarantee to address these ongoing financial challenges.