Child support means financial support for parents to cover the everyday costs of caring for children.
The Child Support Agency is now a division of the Department of Human Services or “Services Australia”. It is responsible for assessing how much child support parents should pay/receive and for collecting child support.
The process of applying for a child support assessment or a review of a decision by the Department can be complicated. Parents have the option of entering into private agreements about the payment of child support to avoid the involvement of the Department.
How is child support calculated?
The Department of Human Services follows a legislative formula to calculate the amount of child support that is to be paid by one parent to the other. The formula takes into account the following:
- Each parent’s taxable income.
- The costs of the children depending on their age.
- The time (ie number of nights) that the children spend with each parent.
The Department has an online calculator which parents can use to assist them in estimating the amount of child support payable – https://processing.csa.gov.au/estimator/About.aspx .
Are all my children’s expenses included in the calculation?
The child support formula uses a Costs of Children table which is based on the basic costs of raising children in Australia. It does not take into account the specific costs of your children such as private school fees, extracurricular activities, health insurance or medical costs.
In some circumstances parents who incur these types of expenses for their children can apply to the Department for a change in the child support assessment based on special circumstances.
Can we enter into a private agreement about child support?
Yes. Parents can agree to exclude the Department from their child support arrangement by entering into a Limited or Binding Child Support Agreement.
Agreements about child support can include the payment of periodic child support, lump sum child support and/or the payment of third-party expenses such as school fees and extracurricular activities. This means that you can tailor your agreement to fit the circumstances of your children.
To enter into a Binding Child Support Agreement parties must obtain independent legal advice.
When does child support end?
The child support legislation in Australia only applies to children who are under 18 years of age except in very limited circumstances. When a child reaches the age of 18 years, a parent or child may be able to apply to the court for adult child maintenance. This type of payment may be available to tertiary students engaged in full-time study or children with medical needs who are unable to support themselves through gainful employment.
