BC Child support guideline payments will change as Federal Amendments to the Canadian and BC Child Support Guidelines will come into effect on May 1, 2006 in British Columbia for BC child support payments and across Canada and will change to increase payment amounts for BC Child Support payments.
A two pronged definition for BC Child Support extraordinary expenses has also been added given disputes that have arisen over when these expenses should be paid on top of basic BC Child support guideline amounts.
First, in accordance with paragraph 7(1.1)(a), expenses are extraordinary if they "exceed those that the spouse requesting an amount for the extraordinary expenses can reasonably cover." This is determined having regard to the income of the requesting spouse as well as any child support received.
Where paragraph 7(1.1)(a) does not apply (where the expense does not exceed the amount that the requesting spouse can reasonably cover), the second part of the definition, set out in paragraph 7(1.1)(b), applies. Paragraph 7(1.1)(b) directs courts to determine whether the expenses are extraordinary having regard to five factors, as follows:
- the amount of the expense in relation to the income of the spouse requesting the amount (including the child support amount);
- the nature and number of the educational programs and extracurricular activities;
- any special needs and talents of the child or children;
- the overall costs of the programs and activities; and
- any other similar factor that the court considers relevant.
Section 20 concerning non-residents has also been amended. Section 20 has been amended to allow the court to reduce income for non-resident payors who pay higher taxes than residents of Canada.
FEDERAL GOVERNMENT UPDATES CHILD SUPPORT TABLE AMOUNTS TO REFLECT CHANGE TO INCOME TAX SINCE 1997
It was recommended that the Federal Child Support Tables should be amended every five years or earlier. They should also be amended on an ad hoc basis with the agreement of the provinces and territories if there is a significant change in taxation or other parameters.
The recalculated child support amounts use the 2004 federal, provincial and territorial tax parameters and structures (most recent available). When compared with the published tables, the updated tables show a substantial impact on some of the support amounts due to some notable changes to taxation regimes in most jurisdictions since 1996/1997.
We provide the following comparisons of old table amounts to May 1, 2006 amounts:
Children Income Old Amount New Amount
1 $50,000 $426 $465
3 $50,000 $911 $994
1 $75,000 $602 $698
3 $75,000 $1,272 $1,459
1 $100,000 $761 $906
3 $100,000 $1,592 $1,875
1 $150,000 $1,079 $1,302
3 $150,000 $2,228 $2,668
As can be seen from the comparisons, the increases are substantial. In some cases, the increase is higher than 20%. One must question if the tax rate changes from 1997 to present justify such an increase and one must also consider that salaries will have likely also risen from 1997 to the present which will also lead to an increased child support payment.
To read more about the changes to the Guidelines, please see the attached link to the new Child Support Guideline amendments:
http://canadagazette.gc.ca/partI/2005/20051029/html/regle4-e.html