Child Support Agency investigates delinquent payers

PARENTS who minimise their income to cheat their way out of paying child support will come under increased scrutiny.

The Child Support Agency has employed an extra 120 financial investigators so it can investigate 2400 separated parents across Australia each year, four times the previous amount.

General manager Matt Miller said the agency was focusing on parents who lived in "affluent suburbs" but have reported low incomes to pay the minimum child support, which is about $6 a week.

"These parents are not only cheating the child support system, they're cheating their children," Mr Miller said.

The move comes after increased concerns that parents were hiding their income illegally, working for cash-in-hand payments or minimising their income through salary sacrificing for tax purposes.

But parents paying child support are not the only ones under investigation. Those on the receiving end will also be scrutinised.

Mr Miller said the agency had already uncovered cheats through data matches from a variety of sources, including bank statements and tax records.

An extra $3.6 million had been uncovered by the agency this financial year and the additional funding from the Federal Government was expected to deliver $460 million more for children.

Source: www.news.com.au

Beware of the pitfalls of Reverse Mortgages

A report from SEQUAL, a lending association targeting seniors, has highlighted the dangers of Reverse Mortgages. Reverse mortgages have become popular in recent years as retirees seek to maximise their income. It's a product that is gaining more popularity with financial planners. They have been particularly popular with people who have benefited from the property boom of a few years ago.

Be aware that financial planners are often paid commissions when the sell loans and other third party financial services to you. Just because reverse mortgages are popular with the lending industry does not mean they are right for you. For a start reverse mortgages will reduce your total equity in your home meaning there is less money there for your kids inheritance and in case of unexpected expenses later in life.

You can learn more about reverse mortgages at ASIC's website here.

SEQUAL is an industry association that has drafted a code of conduct designed to ensure high quality financial advise for seniors. They warn all consumers of financial advise that they should get legal advice on any financial agreements that they are party to.

"It's very important that they have a lawyer look over the contract, explain the obligations to them, and make sure they're doing it for the right reasons."

You can call Erina Legal anytime to have financial agreements reviewed on 02 4365 6556.

Erina Legal - a family business serving families

Denise King is the solicitor/director at Erina Legal. She is also the mother of Craig and Wayne Brown from her previous marriage to Walter Brown.

Denise was born and grew up in Sydney, and moved to the Central Coast when her parents retired at the time of her divorce in 1977. She raised Craig and Wayne while studying a Bachelor of Arts degree majoring in Psychology and Education followed by post gradute studies in psychology, counselling and conflict resolution then a Bachlor of Laws and Post Graduate Diploma in Legal Practice and working in various positions in education, health, teaching and law then counselling and mediation in her own business and finally in her own legal practice. She is presently completing a Master of Laws by research on Family Law and aims to one day retire and write books and articles on her experiences in law.

Some past memberships were in the Central Coast Talented Children's Association while working for the Education Department, the Gosford Philharmonia Choir and Christ Church choir, secretary of the Central Coast branch of the Australian Federation of University Women and an inaugural member of the Erina Club of Rotary. She has been a member of the Liberal Party for nineteen years, currently a member of the Terrigal branch.

Craig (left) and Wayne (right) Brown in the back office at Erina Legal. Craig and Wayne grew up and went to school, college and university on the Central Coast.

Craig completed a Bachelor of Business at Central Coast Campus of Newcastle University and has since completed a Graduate Diploma in Project Management and is presently studying a Masters degree in Project Management. He has had a number of years experience in project management. He was initially a director of Erina Legal but resigned because of living in Melbourne and pursuing other interests. He is presently the manager of Erina Consulting. Craig is expecting his first baby in September, 2007.

Wayne completed a Diploma in Business Management and a real estate license at Gosford College of TAFE. After a number of years experience in business management, real estate sales and manager of Erina Legal since 2004, he is presently studying an Associate Law degree in conveyancing while continuing his role as manager and conveyancer at Erina Legal

Wayne married Kelly O'Connell in September 2003 in idylic Vanuatu and they are expecting their first baby in August, 2007.

Kelly grew up on the Central Coast and completed her qualifications as an architect at Newcastle University where she was awarded the University Medal and a number of other prizes having graduated with first class honours.

Buddy the loved family half blue cattle and half border collie dog.