Child support can be a confusing matter to many parents contemplating either a separation or divorce.
Child support systems in Australia are designed to ensure that the children receive financial assistance from both parents no matter the living situation.
This guide aims to give an overview of what child support is, different payment options, and legal requirements that parents must be aware of.
At Unified Lawyers, our experienced child custody lawyers in Sydney, Brisbane or Melbourne will help you through the process, providing clear and comprehensive advice on the way forward.
What Is Child Support Supposed to Cover?
Getting child support in Australia is meant to consider various costs associated with bringing up a child.
Amongst these are basic requirements for child maintenance including food, clothing and shelter.
Child support is also intended to cater for education and medical expenses.
It is to maintain the standard of living that would normally be there if the parents were together.
Costs of Living
This involves the necessary expenses of providing clothing, food, and shelter for children.
Under Australian laws, child support payments are obligatory to ensure that children have a safe and healthy living environment.
This includes appropriate housing, nutritious food, and clothing, all of which contribute to their physical and emotional well-being.
The aim is to create a safe, stable and supportive environment at home where children can thrive.
Medical Expenses
Child support caters to a child’s routine medical expenses, which include regular visits to the doctor, dental care, and other medical treatments that they may need.
Children should have access to healthcare services to keep their health and well-being.
This on-going support ensures that medical costs, including prescription medications, vaccinations, and specialist consultations, are feasible for the custodial parent.
It should also be noted that the Australian government also provides Medicare, which can be used alongside child support to cover many of these expenses.
Educational Costs
Education is a fundamental right for children, and child support always prioritises access to schooling.
This category includes covering school fees, books, uniforms, and other correlated expenses.
The Australian education system, reinforced by child support payments, entitles children to all the necessary resources to succeed academically.
This also covers extracurricular educational activities, such as tutoring or special educational programs, which uplift a child’s learning experience and academic performance.
What Australian Child Support Does Not Cover
As much as child support covers most aspects of life, certain aspects of this will not generally be incorporated.
Some examples of those are :
Private School Tuition
Standard child support payments may not cover private school tuition unless it is specifically included in a child support agreement.
In Australia, the Child Support (Assessment) Act 1989 allows parents to make agreements that include additional expenses, such as private school fees.
These agreements must be in writing and signed by both parties to be enforceable.
If private school tuition is a priority, you should have this explicitly stated in the child support agreement to allow for coverage.
Extracurricular Activities
Standard Child Support payments are determined in consideration of a formula which looks at both parent’s income, their living arrangements and gives consideration to the average costs of raising a child in Australia.
As such, it cannot have consideration for the specific extracurricular activities where a parent may choose to enrol their child into.
According to Australian child support guidelines, parents can agree to cover specific high-cost extracurricular activities separately.
These activities, which can include overseas trips, specialised camps, or extensive sports training programs, should be detailed in a child support agreement so both parties are clear on their financial responsibilities.
Unlimited Medical Services
Child support payments overall cover reasonable medical costs for children, including regular check-ups, vaccinations, and minor medical treatments.
However, if a child incurs very high medical expenses, such as those related to chronic illness or significant medical procedures, there may be a need for additional agreements.
Under Australian law, parents can request a variation in child support assessments to cover extraordinary medical expenses.
This means that children can receive the necessary medical care without placing an undue financial burden on either parent.
Personal Parental Expenses
It is important to note that child support payments are strictly intended for the child’s needs and cannot be used for the personal expenses of the receiving parent.
All funds provided through child support go directly toward the child’s well-being.
This includes their living expenses, education, medical care, and extracurricular activities.
Misusing child support funds for personal expenses is not permissible under Australian law, and doing so can lead to legal consequences.
Non-Agency and Prescribed Payments
When a Child Support Assessment is done, it is important to know that the amount assessed may not be the amount that the payee parent will receive.
There are two other main forms of payments which child support Australia may credit against the child support assessment amount: non-agency payments and prescribed non-agency payments.
For parents, being informed and understanding the difference between the two, leaves both parents in a better position to deal with such financial obligations in a more streamlined manner.
Non-Agency Payments
Non-agency payments are agreed payments between the parties that may have either been directly paid to the receiving parent or even paid directly to a third party.
These might include payments towards items such as food, shelter, transport, education, health or extracurricular activities.
These are typically much more flexible and can cover a much wider variety of things that money can go towards, but at the same time, they require agreement from both parties.
Prescribed Non-Agency Payments
Some forms of payments, similar to those noted above, can be considered by the child support agency to be credited against the paying parent’s liability, even in circumstances where the other parent does not agree.
These are called prescribed non-agency payments.
The child support agency can only consider these expenses in circumstances where the paying parent has less than 14% of care for the child.
The child support agency can only credit these payments for up to 30% of the paying parent’s liability.
What is the Maximum Child Support in Australia?
There is no set maximum amount of child support; rather, it depends on other considerations.
In Australia, the amount of funds payable is determined by a very accurate child support calculator.
The formula first considers the incomes of both parents, the number of children, and the children’s time division between the parents.
However, our experienced child custody lawyers have also created a quick and easy child support calculator which may help parents to figure out their obligations.
This calculation is based on the Services Australia (formerly known as DHS or the Department of Human Services) assessment guide.
Child support payments will be relative based on how high your income is, yet the formula is intended to assure fair and proportionate support in relation to the needs of the children and the ability of the parents to pay.
How Does the Assessment Process Work?
When you apply to Services Australia for a child support assessment, they examine the financial details outlined above in greater depth.
This typically includes each parent’s taxable income, how the children’s time is divided between households, who is responsible for specific expenses, and any other significant financial obligations either parent may have.
If there is already a parenting plan, parenting agreement, or court order in place, you will need to provide this to Services Australia so they can factor those arrangements into the calculation.
If your parenting arrangements have changed since the last assessment, it is important to notify Services Australia promptly so the assessment reflects your current situation.
Services Australia then applies the child support formula to arrive at a payment amount.
If you believe the resulting assessment contains an error or does not accurately reflect your circumstances, you can lodge a written objection within 28 days of the decision.
At Unified Lawyers, we can help you prepare and submit that objection to give you the best chance of a fair outcome.
Here is an example case study with detailed information about how child support scales with income in Australia :
Case Study Example: High-Income Earner and Child Support
Background :
John and Sarah have two children, aged 10 and 12.
They separated two years ago, and Sarah has primary custody of the children, with John having them on weekends.
John is a successful entrepreneur, earning between $500,000 and $1 million per year, while Sarah works part-time, earning $60,000 annually.
Child Support Calculation:
In Australia, child support is calculated based on both parents’ incomes, the number of children, and the percentage of care each parent provides.
The formula aims to balance the financial responsibilities between both parents.
Basic Formula :
The basic formula considers :
- Each parent’s adjusted taxable income.
- The cost of raising children is based on a percentage of combined parental income.
- The percentage of care each parent provides.
Child Support and Special Circumstances
Child support may be influenced by special circumstances in the event that a child has special needs, which will likely be more demanding of support, such as the support of a fully disabled child or if a parent earns very high income.
In such a case, the parents have authority to apply for exemption from the ordinary assessment in their circumstance.
Does Child Support Vary By State in Australia?
Child support laws and the calculation of payments are consistent across Australia, governed by federal legislation, primarily the Child Support (Assessment) Act 1989.
Services Australia administers the scheme, allowing uniformity in how child support is assessed and enforced nationwide.
Child support covers the same items nationwide. For example, your child support requirements will be the same whether you live in NSW, Victoria, Queensland or any other state or territory within Australia.
However, discrepancies in actual child support might arise based on the different context of each state.
For example, Queensland has a high number of FIFO workers in Australia. For this group of workers, their work arrangement might have an impact on their child support.
In this scenario, a binding child support agreement is usually adopted by Brisbane child custody lawyers to address the potential shortcomings.
What About International Situations?
It is also worth noting that the child support system is not limited to cases where both parents live in Australia.
Services Australia can conduct an assessment as long as at least one parent resides in the country.
If you are dealing with a situation where the other parent lives overseas, the assessment process may be more complex and take longer.
FAQ's
Can parents reach a private agreement as to what child support should be paid?
Yes.
In Australia, parents have several options for establishing child support.
The most common route is to apply to Services Australia for a formal assessment, where they then calculate the amount, manage payments, and oversee enforcement.
Either parent can initiate this process.
Alternatively, parents can make a private arrangement without involving DHS.
If you choose this path, there are two types of agreements available: a limited child support agreement and a binding child support agreement.
A limited agreement is based on an existing child support assessment and is generally easier to change.
These agreements typically have a lifespan of around three years, after which they can be reviewed or replaced.
A binding child support agreement, on the other hand, is negotiated directly between the parties and their lawyers without requiring a child support assessment.
Binding agreements are more difficult to vary and require both parties to have obtained independent legal advice before signing.
In some situations, a court may also order child support payments.
For example, where a child has turned 18 but is still in full-time education, or where parents cannot reach agreement through other means.
Whichever pathway you are considering, it is important to get the arrangement right from the outset to protect your children’s long-term needs.
Who can apply for a child support assessment?
Any legal parent of a child can apply for a child support assessment.
You will need to provide proof of parentage, for example, through a birth certificate that names you as a parent, adoption papers, a court determination of parentage, or a statutory declaration.
You are generally recognised as a legal parent if you were married to the other parent at the time of birth, if you are named on the birth certificate or adoption papers, or if a court or the Family Law Act has established you as a parent.
Non-parent carers, such as grandparents, may also be eligible to apply for child support in certain circumstances.
To qualify, the child must be in your care for at least 128 nights per year, you must not be in a relationship with either parent, and you must not share joint care with either parent.
Importantly, a non-parent carer’s own income is not factored into the child support calculation.
How long does it take to have child support assessed?
The timeframe for a child support assessment can vary.
In straightforward cases where both parents cooperate and provide their financial information promptly, the process is usually relatively quick.
However, if one parent is uncooperative or difficult to locate, assessments can take significantly longer.
Services Australia may need to independently source financial records before it can finalise the calculation.
What happens if my ex does not pay the entire amount of child support?
If you are not receiving the full amount of child support you are entitled to, the first step is to contact Services Australia.
How they can help will depend on how your payments are set up.
Where child support is collected through Services Australia, the agency has significant enforcement powers.
It can deduct payments directly from the paying parent’s wages through their employer, intercept tax refunds, and redirect Centrelink benefits to cover outstanding amounts.
In serious cases of persistent non-payment, Services Australia can also initiate court action or place a departure prohibition order that prevents the paying parent from leaving Australia until the debt is resolved.
It is important to understand that they can only enforce payments for child support agreements that are formally registered with them.
If you have a private collection arrangement that is not registered and the other parent stops paying, your only option may be to pursue a breach-of-contract claim through the courts, which sits outside the family law system and can be more costly and time-consuming.
For this reason, many parents find it safer to have Services Australia manage the collection from the start.
If your current arrangement is not working, we can help you explore your options. You can find out more in our article here.
Is child support tax deductible?
Child support payments are not tax deductible for the paying parent in Australia, and they do not count as a tax for the receiving parent.
This is in order to ensure that enough support is given out to the child.
Learn more about whether or not child support is tax deductible.
When do I stop paying child support?
Child support is usually ongoing until a child reaches 18 years of age, child support may extend if a child continues to attend school or terminate earlier if a child becomes financially independent or gets married.
For more information about when to stop paying child support click our helpful resource here.
Will my child support affect my Centrelink benefits?
If you receive Centrelink benefits, particularly Family Tax Benefit Part A, your child support payments may have an impact on the amount you are entitled to.
The interaction between child support and Centrelink entitlements can be complex, and changes to your child support arrangement may trigger adjustments to your benefits.
It is important to notify Centrelink as soon as your child support circumstances change so you can understand how your payments will be affected and avoid any unexpected debts or overpayments.
Why Choose Unified Lawyers?
The right choice of legal representation may very well make a big difference in the way that child support cases are handled.
Here at Unified Lawyers, we are proud of all the extensive experience and knowledge of Australian family law injunctions.
We believe in customising the service with a view to the needs of the client in a sympathetic and sensitive manner.
We do this with our expert legal team who works tirelessly so that the set child support agreements are just and tailor-made to your family’s specific needs.
Unified Lawyers are with you at every step of the way, from providing advice for creating a child support agreement to enforcing payments and applying for a special assessment.
We have offices in Melbourne, Gold Coast, Brisbane, and Sydney, ensuring we will be able to provide you with the most extensive family law advice regardless of where you are.
Get in touch with Unified Lawyers today to book a consultation. We aim to meet your needs through the best result that comes with our professional services.