Going through a separation or divorce is often made more complicated when the parties are raising children. Couples may want to finalise property matters as quickly as possible post-separation. When it comes to custody and child support Australia, it’s essential to consider what is best for the child in the long run.
In Australia, both parents are legally required to support their child under the Child Support Scheme, so regardless of where the child lives, each parent has a financial obligation to support the child until they turn 18.
This article will give you an overview of child support in Australia and how it may work in your family.
Key Takeaways
Child support is paid by one parent to the other to help with the costs of raising a child after separation or divorce.
Child support covers expenses related to the child’s needs.
Parents can agree on child support payments in different ways.
The amount of child support is based on various factors, including each parent’s income.
Child support arrangements can be enforced privately or through Services Australia.
Parents who disagree with Service Australia’s child support assessment can request a review or appeal the decision.
Child support generally stops once the child turns 18.
There are certain criteria children must meet to be eligible for support payments.
Entering a new relationship may impact child support.
One parent living overseas may still need to pay child support.
What type of child support benefits you?
What form your child support agreement should take depends on your needs.
Binding child support agreement | Limited child support agreement |
You agree on support payments. | You need a third-party assessment. |
You want long-term certainty on child support arrangements | You want the option to exit the agreement after three years. |
You want to have flexible payment options. | You prefer an objective assessment to determine payments. |
Understanding Child Support in Australia
Under the Child Support Assessment Act, child support means ongoing financial support provided to a child after their parents separate or divorce. It is designed to help cover the expenses of raising a child, such as food, clothing, medical costs, school fees, housing, and more.
Child support is commonly made in regular payments. It can also be paid as lump sum payments or by paying for specific costs, such as school fees.
In Australia, Services Australia is the child support agency that governs most of Australia’s child support agreements, although child support can be handled in two ways. First, you and your former partner can privately agree to a binding child support agreement.
You can also apply to Services Australia, which makes an assessment and calculates the amount payable. These child support options help parents manage arrangements, and the child support system can also affect Family Tax Benefit Part A outcomes, so getting clear child support information matters for family tax benefit entitlements.
For many families, coming to an amicable agreement without involving Services Australia is usually less stressful and can be handled between you and your ex-partner or with the help of a family lawyer. In some circumstances, however, this isn’t possible, and Services Australia can decide how much is appropriate. This is called a limited child support agreement.
What does child support cover exactly?
There are no set rules under Australian law on what child support can and cannot be used for, aside from the rule that it must be used for the child’s benefit when contributing to the costs of raising children. Parents cannot use the money to pay for goods and services that benefit them.
It is designed to cover the fixed costs of raising a child that are regularly shared between parents, regardless of where the child lives, such as food, shelter, clothing, school fees, school uniforms, extra-curricular activities such as sports, and medical fees. The money paid under child support can be used for these shared costs.
Child support can be paid in several ways, such as through a lump sum payment. You can also get more creative. An agreement can include provisions for non-financial arrangements.
Consider this example of support arranged for the child’s benefit. Both parents are working full-time, but the primary carer doesn’t have access to a vehicle. They, therefore, must take public transport to work, making childcare difficult. The other parent offers access to a vehicle so the child can be dropped off at day care on the parent’s commute to work. This promotes the child’s well-being as part of the parenting arrangements.
Can I apply for child support?
If you are a parent, caring for your child at least part of the time, and are not living with the child’s other parent, you can apply for child support online for a child support assessment. In some cases, you should apply within 13 weeks of separation.
Third-party custody is also possible. For example, if you are a grandparent, a non-parent carer, or a legal guardian with care of a child, you can also apply for child support. Speak to our expert family lawyers for an obligation-free consultation on your situation.
Can parents make their own arrangements for child support?
Yes, you and your ex-partner may choose different child support options for financially supporting your children, including making a private agreement instead of applying for an assessment from Services Australia. In fact, this is usually the preferred way of coming to an agreement that is suitable for all parties.
Even if you have an amicable relationship with your ex-partner, it is always advised to seek independent legal advice and put your child support agreement in writing. If you can cooperate, you may also self-manage the arrangement, or register your agreement with Services Australia.
A private agreement should be clear and detailed, as it may need to be enforced later if one party does not comply.
Child Support Cost
How much are child support payments?
Child support varies from family to family. There a number of factors to consider, including the income of each parent, the child’s age, where the child lives, and the amount of time the child is in each parent’s care.
The child support percentage assumes the obligation of each parent to support their child financially, which is required by the Family Law Act. It is, in principle, based on the time each parent cares for the child.
For example, if separated parents have 50/50 joint custody of the children, each parent’s cost percentage is more likely equal. If one parent is the primary caregiver, the other parent may need to pay more so the primary caregiver can receive child support.
How is child support calculated in Australia?
When managed by Services Australia, an administrative assessment of your situation is carried out under the relevant legislation to determine which parent should pay child support and how much. They will require a copy of any parenting plans or parenting orders that detail the child’s living arrangements.
Standard child support assessments follow a complicated formula that takes into account:
The income available to each parent minus the cost required to ‘self-support’.
The number of dependent children a parent needs to support and how old they each are.
The amount of time the child spends with each parent.
The percentage of the child’s costs each parent covers.
The average cost of raising a child in Australia.
Costs specific to this child.
This assessment is part of Australia’s child support system and helps decide financial support responsibilities.
This child support formula determines an amount suitable for each child, payable by one parent, usually to the other.
How do you pay child support?
Usually, parents make their own arrangements for how and when child support payments are made. Keep payment records for future reference.
If you and your ex-partner cannot agree, or if the parent responsible for paying support refuses, Services Australia can collect payment and redistribute it to the other parent.
Services Australia can also mandate that their employer deduct the amount from their wages to make the payment. Are you entitled to be paid child support from your ex-partner, but they’re refusing? Our experienced family lawyers can assist you in taking action.
To estimate the care percentage used to calculate child support payments, kindly check this care estimator.
What is the maximum child support payable in Australia?
There is a cap on the maximum child support payable when the application is made through Services Australia. The specific calculations take the combined income of both parents into account. There’s also a cost of children table that’s updated to reflect parenting expenses every year. The calculations can be found on the Services Australia website.
If the parents discuss an agreement privately, this amount may change.
How is a child support agreement enforced?
Approximately one-third of parents in Australia’s child support scheme are behind on payments. That amounts to about $1.7 billion worth of payments in arrears. This is an issue that disproportionately affects single mothers, since 84% of paying parents are men. Receiving support payments on time drastically reduces a mother’s chances of entering poverty.
Formal child support arrangements are legally enforceable. If the paying parent fails to cover basic living costs, there are various ways to account for the unpaid child support.
Private collection
Private collection puts the burden of enforcing child support and chasing up late payments on the parent receiving the support. This makes enforcement more difficult. Private collection usually works best when the parents have agreed on the child support needed and stay up to date on their tax returns.
If payments stop or start coming late, don’t assume that it’s being done with malicious intent. There are legitimate reasons why the paying parent is struggling to keep up with the agreed-upon plan, such as the parent’s financial circumstances have changed. If circumstances change, notify Services Australia within 28 days so they can develop a more appropriate assessment. This includes updating your contact details so assessments and related payments stay accurate.
If one or both parents are unwilling to agree, seek legal advice. It may be worth having Services Australia collect payments instead.
Services Australia collection
Services Australia can collect and transfer child support payments on behalf of the parents. The agency has broad powers to recover overdue payments, including:
Deductions to income support payments. Some parents may receive government benefits, such as Austudy, Veteran Payment, or Centrelink payments. Child support debts can be deducted from these benefits.
Tax refund deductions. Since most parents pay tax, applying deductions to tax refunds is an option to collect overdue payments.
Third parties. Services Australia may work with third parties to collect late payments in some circumstances.
Employer or bank account deductions. Debts can be covered by garnishing salaries or deducting payments from bank accounts.
Travel bans. Services Australia can seek a Departure Prohibition Order to prevent a parent from leaving Australia if they’re planning on overseas travel until they’ve settled their debt.
Other Common Questions About Child Support
What if I am unhappy with the outcome of the child support assessment?
In some cases, you may feel the child support assessments made by Services Australia are unfair to one parent. You may feel you are being asked to pay too much, or the payments your ex-partner is asked to provide are too little, and you won’t be able to support your child financially.
In some cases, the assessment may become unfair due to special circumstances, such as one of you losing your job, one of you greatly minimising taxable income for the purpose of the assessment, or significant costs such as private school fees or medical fees for an unwell child.
If this happens in your child support case, you can apply for your assessment to be re-evaluated by Services Australia. A person who disagrees with a decision must usually object within 28 days, and objections can be made on the Services Australia website. You can then apply for a first review within 28 days of the objection. If you are living overseas, the review timeframe may be 90 days. Some declaration applications must be made within 56 days of notification. You may also be able to apply to the Court.
Suppose you and your ex-partner made a private child support agreement. In that case, our experienced family lawyers can also renegotiate to come to a new arrangement that better suits you and your ex-partner.
At what age does child support stop?
Child Support typically ends when the child turns 18. If the child is in their final year of high school at 18, child support payments continue until the end of that school year.
Child support payments may continue after the child turns 18. This is called Child Maintenance. Child maintenance is payable if the child is studying secondary or tertiary education, which includes a university degree or an apprenticeship. It may also apply if the child has a physical or mental disability or if the child is seriously ill.
Child support payments don’t usually roll over into maintenance. An application must be made before the child turns 18, and can be made by either the parent or the child themselves. The amount of child maintenance payable depends on several factors, including:
The necessary expenses of the child.
The capacity of the parent to pay for these expenses.
The amount the parent requires to support themselves and any other dependents.
If a child under 18 gets married or enters into a de facto relationship, they are no longer eligible for child support.
Which children are eligible for child support?
Child support is available in Australia when a child’s parents are not together, and it may also be payable where a non-parent carer, other family member, or family member such as a grandparent has day-to-day care of the child.
In order to be eligible for child support, a child must:
Be under 18 years of age, or 18 and in their final year of high school.
Not be married or in a de facto relationship.
Reside in Australia or a foreign jurisdiction with which Australia has a child support agreement.
An eligible carer may receive child support if they have day-to-day care.
If a child moves abroad or is no longer an Australian citizen, and there is no international maintenance agreement, child support payments cease under Australian law.
Does a new partner affect child support?
The only people responsible for financially supporting a child are the child’s parents. The amount of child support payable is calculated on the income of the child’s parents only. If one parent enters a new relationship or gets remarried, the amount they are required to pay does not change. This is unless the amount of time they care for the child changes.
What if the other parent lives overseas?
Parents living overseas may still be liable for child support. You’ll need to inform Services Australia of the following:
What your circumstances are, including all of the children you are responsible for.
The details of your income and the currency you earned it in.
What you earned in the most recent financial year, even if it doesn’t align with the Australian financial year.
Documents that prove the income you earned.
Living outside of Australia won’t protect a party from meeting their child support obligations. Australia has agreements with many reciprocating jurisdictions. Services Australia can appeal to the maintenance authority in the foreign country to have an assessment recognised and payments enforced.
What if I'm concerned that child support payments are being misused?
The parent receiving payments doesn’t need to account for their spending. This can understandably lead to concern that the child isn’t being adequately cared for. Be careful about trying to control how the parent handles their funds. This could be construed as financial control, which is associated with domestic and family violence.
You can control expenditures to some extent. Provisions in a binding child support agreement can relate to particular costs. You could, for instance, cover a cost such as day care. If you’re still worried, get legal advice.
From our clients
Peter and Lisa are outstanding. They helped me navigate an extremely difficult personal and legal situation. They treated me with kindness and respect. Peter provided practical, no nonsense legal advice to achieve outcomes that are in the best interests of my kids. I am so grateful to them for their assistance.
– Jennifer Eden
Working through any family law matter involving children can be a sensitive and delicate time. Our team helps find the best outcomes for families in custody and child support.
Conclusion
Child support provides financial support for children based on the care arrangement. The support covers expenses such as food, housing, education, and medical care. Parents can either agree on child support through a binding agreement or have it assessed by Services Australia. They will calculate payments based on factors such as income and time spent with the child.
Peter was super helpful with all of my legal needs. Super affordable and has a wealth of knowledge to assist with my marriage split. Definitely recommend him to family and friends.
– K.G.
Andrews Family Lawyers can provide personalised guidance and support to make the process easier for you.
