In Australia, parents have a legal obligation to financially provide for their children. This obligation continues until a child turns 18 (in most circumstances). In some cases, child support payments can cease before a child turns 18 or can continue to be payable after a child turns 18.
What do child support payments cover?
Child support payments for children can cover a whole host of different things such as food, clothing, housing costs, medical, school fees and extra-curricular activities. These payments apply to all separated parents. Ordinarily, the party who earns a lesser income and spends more time with the children will receive payments from the other parent.
How is child support assessed?
The Child Support Agency (“CSA”) applies a formula to determine how much child support should be paid. This formula looks at the following:-
- The number of dependent children the parties have;
- The age of the children;
- The level of care each parent provides to the children; and
- The income of each of the parents.
Based on these factors, the Child Support Agency determines a figure payable by one parent to the other. If either party does not agree with the figure reached by the CSA, they can seek a review of that assessment.
Once both parties are happy with the child support payable, they can then decide whether they will pay child support directly to the other parent or whether they will make payments through the CSA. If you are making payments directly to the other parent, we recommend you keep clear and accurate records of all payments you have made to avoid any uncertainty.
The Department of Human Services provides a free online calculator whereby you can complete your details and receive an estimate of the child support you are likely to pay or receive. To view the calculator click here.
What if we have reached our own agreement regarding Child Support?
Excellent! Depending on your personal circumstances, it may be best to document your agreement in what is called a Limited Child Support Agreement or a Binding Child Support Agreement. Apart from confirming the agreed amount paid each week, these Agreements can cover additional things such as the payment of private health fees, private school fees and uniforms/books/other extra-curricular activities. These types of agreements give certainty and comfort to each of the parents and can also be beneficial to business owners or people with fluctuating income.
These Agreements go above and beyond your usual Child Support requirements and oust the jurisdiction of the CSA, therefore, they need to be appropriately drafted to ensure they cannot be overturned. Each parent needs to obtain independent advice before entering into these types of agreements and we recommend you consult with a family law solicitor to assist you in drafting a Limited or Binding Child Support Agreement.