KEY TAKE OUTS:
- Child support is governed by Services Australia and applies to guardians who were in a marriage or de facto relationship.
- It ensures children receive financial support from both parents through regular payments.
- Parents can choose to have child support assessed by the Child Support Agency or come to their own private agreement.
Article updated: 12 March, 2025
What is Child Support?
In Australia, Child Support is governed by the Child Support (Assessment) Act 1989 (Cth) (“the Act”), which notes that the object of the Act is to ensure that children receive a proper level of financial support from their parents. When parents have separated, in some instances, it is necessary for one parent to assist the other financially to ensure that the needs of the children are being met. This payment is called Child Support.
Who has to pay Child Support, and who can receive Child Support?
The legally responsible parents pay child support. An assessment is conducted by the Child Support Agency considering factors such as time spent with children and income of guardians. You will be liable to pay Child Support when your percentage of care of the child/ren is less than your share of the combined income. Normally, the parent who has cared for the child 35% of the time over a 12-month period will be eligible to receive child support.
How much do I need to pay if I choose to go through the Child Support Agency?
The amount of Child Support is determined through a formula under the Child Support (Assessment) Act 1989 (Cth). The formula takes into consideration the number of children, the age/s of the child/ren, the income of each parent, and each parent’s share of the care of the child/ren. The Child Support Assessment is reviewed every 18 months for potential reassessment. Reassessment is likely to occur to consider circumstantial changes.
Once the amount is determined by the Child Support Agency, the parties will then need to choose how the Child Support will be paid/received. Parents can choose to have the Child Support automatically collected by the Child Support Agency and transferred directly to the receiving parent, or they can choose private collection and arrange payment privately.
Does Child Support cover school uniforms, and do I need to pay for anything else if assessed through the Child Support Agency?
Child Support as assessed by the Child Support Agency is designed to cover all aspects of the financial needs of the child/ren. Any school fees, uniform, school excursions, and extra-curricular activities undergo further assessment with the primary consideration of the ‘child’s best interest’ but are not automatically included in the Child Support assessment. Individual circumstances will be considered, placing emphasis on factors such as:
Standard of living
If the child previously attended a fee-paying institution.
Parental income: The courts will assess the financial income of both parents, taking into consideration particular circumstances. Certain contributions may be ordered by a particular parent if they are financially viable to pay.
Previous agreements
The courts will consider prior arrangements made for the payment of school fees. Any decisions made prior to current arrangements may be considered if it’s in the child’s best interests.
Change in Circumstances
Significant changes in a parent’s financial position could redirect the allocation of school fees.
What do I need to do if we decide on our own agreement?
If the parties choose to come to their own agreement, it is open to them to agree on any amount they wish. Although there is no requirement that the arrangement be formalised, they do have the option of entering into a Binding Child Support Agreement or a Limited Child Support Agreement. Both Binding Child Support Agreements and Limited Child Support Agreements cover periodic and non-periodic payments. Periodic payments are regular payments of the same amount to cover the financial expenses involved in caring for the child/ren. For example, the agreement may be to pay $350 per week, which will be used to cover the day-to-day expenses such as food and clothing. Non-periodic payments relate to the payment of, or contribution towards, expenses such as school fees, school uniforms, extra-curricular activities, medical expenses, and dental expenses.
What is the difference between a Binding Child Support Agreement and a Limited Child Support Agreement?
Parties entering into a Binding Child Support Agreement are required to obtain independent legal advice. The Binding Child Support Agreement contains a certificate stating that, in accordance with the Act, the parties have been provided independent legal advice in relation to the Agreement, which must also be signed by the Family Lawyer. The Binding Child Support Agreement will not be considered binding without these certificates. Unlike Limited Child Support Agreements, there is no requirement that the parties entering into a Binding Child Support Agreement complete a Child Support Assessment, or that the party receiving Child Support have at least 35% care of the Child/ren. There is also no restriction on the amount of Child Support payable, and the parties are at liberty to come to their own arrangement.
It is important to note that one of the limitations in entering into a Binding Child Support Agreement is that it will not take into consideration a change of circumstances in the future. For example, where one party remarries, or their income changes substantially, it is not open to amend the Binding Child Support Agreement to take these changes into account.
Limited Child Support Agreements do not require the parties to obtain independent legal advice and do not require the signature of a Lawyer. However, we recommend that parents seek independent legal advice, so they are aware of their rights and obligations in relation to Child Support before entering into an agreement. Before a Limited Child Support Agreement will be accepted by the Child Support Agency, the parties must have completed a Child Support Assessment. The amount payable in the Limited Child Support Agreement must be equal to, or more than, the amount contained in the Child Support Assessment. In addition, there is a requirement that the party receiving Child Support must have at least 35% care of the Child/ren.
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This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.
