In Australia, child support is a national system run by the Australian Government. After a parent applies for support, parents receive an assessment of how much to pay or receive each month. The formula considers the incomes of the parents and how much care each parent provides.
- Money transfers can go through Services Australia or be handled by the parents directly.
- Parents can also make their own unique arrangements for how support will be provided, including the option for a legally binding agreement.
Let’s explore how the system works in more detail. I’ll cover the types of arrangements, how child support is assessed and calculated, enforcement methods, and other relevant topics.
Types of Arrangements
Upon application by a parent, Services Australia will calculate a child support assessment. The assessment determines who pays and how much. Parents can choose whether (a) payments are collected and transferred by Services Australia or (b) managed privately between the parents.
Alternatively, self-managed child support allows parents to handle payments independently, deciding on the amount, schedule, and method. This option limits the Family Tax Benefit Part A to the base rate.
For more flexibility, parents may also establish a child support agreement, which can include cash payments or non-cash contributions, such as school fees or health insurance. Agreements can be limited or legally binding when reviewed by a lawyer.
How Child Support is Assessed
Child support assessments in Australia are calculated using a formula set by law. The assessment mainly considers the incomes of the parents, number and ages of children, and the percentage of care each parent provides.
The assessment period can cover up to 15 months, and adjustments can be made if circumstances change. If you disagree with the assessment, there is an option to object and have the decision reviewed. Non-parent carers can apply to receive child support from parents.
How Payments are Calculated
Child support in Australia is calculated using a formula that takes into account parents incomes and how much time they spend caring for the child. The Basic Child Support Formula starts by determining each parent’s child support income, which is their taxable income minus a set self-support amount. This amount provides the foundation for calculating child support.
Once the combined income of the parents is calculated, each parent is assigned an income percentage. The Costs of Children Tables are then used to determine how much it costs to raise children, based on the parents’ combined income and the number of children. The tables adjust for different age groups, reflecting the higher costs for teenagers.
Finally, the formula compares each parent’s care percentage with their income percentage. Essentially, a parent pays child support if their care percentage is lower than their income percentage, and vice versa.
Related: Child Support Calculator: Online Australia
Child Support Australia
Child Support Australia is an independent service that helps parents manage their cases and finances. It provides free tools, such as a Child Support Calculator, which lets parents estimate payments by entering their income, the number of children, and care arrangements.
The platform makes it easy to understand how much support is required and the strategies to avoid bad outcomes. Parents can also ask questions and join in community discussions via the Child Support Australia Facebook Group.
How to Apply
Applying for child support in Australia is straightforward, with the quickest method being online through myGov. If you’re a new customer, you can complete the Application for Child Support Assessment form online. Those outside Australia should use the international form. Existing customers can apply through their linked myGov accounts.
In some cases, additional documents like a statutory declaration may be required, and Services Australia will guide you through this process. Once your application is assessed, you’ll receive a notice detailing how much child support you’ll pay or receive, along with payment start dates.
When the Court Gets Involved
While most child support matters are handled administratively by Services Australia, the Family Court steps in under specific conditions. The Court may consider child support cases when a parent has exhausted all administrative steps and needs to appeal a decision. It can also get involved if a parent requests non-periodic payments or wants to change an existing assessment due to special circumstances.
Additionally, the Court can make child maintenance orders in situations where a parent cannot apply for child support under standard legislation. These cases are exceptions, as most disputes must first go through the administrative process with Services Australia before the Court can intervene.
Enforcement Methods
In cases where child support payments are not made voluntarily, several enforcement options are available, including:
- Deducting payments directly from a parent’s salary
- Intercepting tax refunds
- Collecting funds from bank accounts
For more serious cases, additional measures can be taken:
- Preventing a parent from leaving the country until payments are made or an arrangement is in place
- Initiating litigation to recover unpaid child support
Contact Child Support
Managing child support online is simple through myGov. New customers can apply for a child support assessment directly on the platform. For general enquiries, parents can use the site’s contact forms.
Note: It’s often faster to consult resources like the Guide for Newly Separated Parents or child support estimators before reaching out.