News - Amendments to FCSG

Amendments to the Federal Child Support Guidelines - May 2006 effectiveness

Amendments to section 7 of the FCSG effective May 2006 will bring them in line with the Manitoba Guidelines on the issue of "special and extraordinary expenses" by adding a definition section that mirrors the Manitoba amendments made a few years ago. The key change is that the law is clarified to provide that the "extraordinary" part of the expense is whether the parent claiming it can afford it, not whether the activity is itself unusual. If that primary test is not met, the court will still consider the claimant's income, the number and cost of activities, the particular needs and talents of the child, the overall cost of programming and other similar factors the court considers relevant.

The Revised Tables (2006) which dictate the amount of child support payable have also been adjusted for each province to reflect changes over the last five years in federal and provincial taxation. While in Manitoba, the threshold amount - the amount of income below which no support is payable - is now higher, rising from $6,700 to $7,999, as one gets to the middle and higher income levels the amount payable increases. At the top end, for incomes over $150,000, the amount payable for one child goes from $1101 plus .69% of the excess income to $1217 plus .99% of the excess. The federal website includes a quick calculator for child support which is useful in the simple case, providing the answer where the number of children and the gross income of the paying parent is entered.

Presumably, the change in the tables will qualify as a "material change of circumstances" prompting claimants to seek variations. Those who have orders under the provincial legislation will be well advised to apply for a Recalculation Order to deal with the issue. For more information on Recalculation Orders see our article on this subject.

Changes have also been made to cure the anomaly in cases where the payor lives in a foreign country. Now where the taxation rates are higher than in Canada the court can adjust the payor's income. Previously the court could impute income only where the taxation rates in the foreign country were lower.

The fourth substantive amendment is to the Comparison of Family Standard of Living test which is used in the determination of "undue hardship". In determining income, the first step in the formula, the court will now deduct CPP contributions and E. I. premiums as well as income tax from the person's income.