The breakdown of a relationship or marriage can be emotionally daunting, especially when children are involved. It is not uncommon for parents to be confused when determining child support. In accordance with the Child Support (Assessment) Act 1989 (Cth), parents have a duty to maintain their children in the form of child support payments.
What is Child Support in Family Law?
Child support is a term used to describe the payment of money from one parent to the other for the purpose of helping that parent raise children who are under 18 years of age. Child support is designed to help cover the expenses involved with raising children, such as food, clothing, medical costs, housing, school costs and costs related to other activities. All children in Australia involved in family separations, whether or not the parents were married to each other, are eligible for child support payments.
How is Child Support calculated in Australia?
Services Australia is an Australian Government Agency who have authority to determine child support matters. They are required to follow steps to calculate the amount of child support payable. In calculating how much child support is to be paid, there are various factors which are generally taken into account:
- The age of the child
- The income of both parents
- The amount of time that the child spends with each parent
- The level of care that each parent provides
- Costs of raising the child based on independent research
You can use the Services Australia’s calculator to estimate child support payments here.
What can you do if the Child Support Calculation seems unfair?
There may be circumstances where you may believe that the child support payments assessed are unfair to you. This may occur where one parent has arranged their financial affairs to minimise their taxable income, has lost their job since the assessment was made, or where a child has special needs.
In these circumstances, you may apply to Services Australia to change the assessment. They will then consider the specific circumstances before deciding whether the assessment should be varied.
What if the other parent does not pay Child Support?
Services Australia has the power to recover unpaid child support. They can do this through:
- Deducting payments directly from income
- Requiring the lodgement of tax returns or intercepting tax refunds
- Working with third parties to obtain payment
- Deducting funds from an employer or bank account
- Issuing overseas travel bans
- Commencing legal proceedings
- Prosecuting non-compliance where appropriate
Can you organise Child Support based on a mutual agreement?
It is possible for parents to organise and manage child support themselves. This can happen when parents reach an agreement and mutually decide upon the amount of child support they will pay to the other parent. This can involve making cash payments to one another or meeting payments of expected expenses directly. This arrangement can be entered into by way of a Limited Child Support Agreement or a Binding Child Support Agreement, which is subsequently lodged with Services Australia.
Contact Us
In order to ensure accurate financial calculations, successfully negotiate custom arrangements and achieve enforceability, we highly recommend to engage a family lawyer to assist who can provide you with objective guidance.
If you would like to discuss your child support matter with an experienced Family Lawyer, please contact Etheringtons Solicitors in North Sydney on (02) 9963 9800 or via our contact form.