Child Support
Child support ensures children’s financial needs are met by both parents, with payments influenced by how much time the children spend with each parent. More time with the children typically means less support and conversely, balancing financial responsibilities and care with a focus on the child’s well-being.
Understanding and Navigating Child Support Agreements
The Child Support Agency (“the Agency”) is the Federal Government department that oversees child support. They determine who pays child support and how much. The formula the Agency relies on is based on the general needs of the children, divided between the parents and is based on each parent’s income as well as how often the children are in that parent’s care.
It is administered by the Child Support Agency, and there are strong links between Centrelink, the Australian Taxation Office, and the Child Support Agency. Parents can have their Child Support Assessments reviewed by the Child Support Agency, the Administrative Review Tribunal and, in certain circumstances, the Federal Circuit and Family Court if they feel the assessment may be wrong.
While this is the formal process, parents also have the option to negotiate a private agreement. This allows them to establish their own terms regarding the amount and frequency of payments outside of the CSA’s formal assessment. A child support lawyer from Freedom Family Law can provide valuable guidance in creating and formalising such an agreement, ensuring it meets legal requirements and is in the best interest of the children.
To make an application for child support, you must do so by completing an Application for Child Support, this can be done online.
How we can help
If you have a dispute relating to child support, contact us for an obligation-free consultation to discuss your issues in detail with a specialist family law solicitor.
Types of Child Support Agreements
In Australia, parents have the option to formalise child support payments and arrangements either through the Child Support Agency or by reaching a private agreement. While the CSA can assess and collect child support payments based on a set formula, parents also have the flexibility to make private arrangements outside the formal child support process. The type of agreement you should choose will depend on your unique circumstances and the level of flexibility you need. As experienced child support lawyers, we recommend seeking legal support to decide which arrangement is best for your family.
Below are the main types of child support agreements available under Australian family law.
1. Limited Child Support Agreements
A limited child support agreement is a formal, written agreement between parents that outlines the amount and frequency of child support payments.
There are a few parameters around these agreements.
- It must be in writing and signed by both parties.
- A current child support assessment from Services Australia is required.
- You cannot specify payments less than the assessed amount.
- You do not require legal advice before signing.
Limited agreements are flexible and can be changed or terminated if circumstances change significantly. Either parent can cancel the agreement after three years or if the child support assessment changes by more than 15%.
2. Private Binding Child Support Agreements
Parents can also make private Binding Child Support Agreements that bypass the Agency. Binding Child Support Agreements (“Agreements”) enable parents to agree on how much (if any) child support is paid and what it is applied to. Parents can agree that the payer of child support pays for items such as private school fees, car payments, mortgage repayments, extra-curricular activities and private health cover. Binding child support agreements provide greater flexibility and certainty for both parents.
These very important Agreements should not be entered into without proper legal advice. A lawyer for each parent must execute a Certificate confirming they have given a parent independent legal advice for the Agreement to be binding.
Once signed, the agreements are usually registered with the Child Support Agency.
These agreements:
- Can include payments for amounts higher or lower than the assessed child support.
- Cover a wide range of expenses, such as school fees, medical costs, and extracurricular activities.
- Require both parties to obtain independent legal advice before signing.
Once in place, a binding agreement can only be varied or terminated by mutual agreement or a court order, making it a more secure option.
3. Informal Agreements
Some parents choose to make informal arrangements for child support without involving legal processes.
While this approach can be quicker and less formal, it:
- Is not legally binding.
- Cannot be enforced if one parent fails to comply.
- May lack clarity on specific expenses, leading to disputes.
For financial security and clarity, informal agreements are often formalised into one of the above agreements.
Freedom Family Law is experienced in all aspects of family law.
As family lawyers, we work in all aspects of family disputes, divorce, and child matters. So, we know that when you come to us, you’re often facing one of the worst experiences of your life. We understand how emotionally draining these processes can be and we’re passionate about supporting you to achieve a good outcome. We offer compassionate, second-to-none support to help you find the right answers and navigate an often stressful legal process.
Frequently Asked Questions about Child Support in Australia
Have a question about child support matters? We may have answered it below. You’re welcome to book a consultation with our team to obtain legal advice for your specific situation.
Changes in financial circumstances or care arrangements can significantly impact child support assessments. Examples of changes that may affect assessments include:
- A parent’s income increasing or decreasing.
- A change in employment status (e.g. job loss, retirement, or a new job).
- Changes in the amount of care each parent provides (e.g. one parent taking on more or less care of the child).
If any of these changes occur, you should notify Services Australia as soon as possible. They can reassess the child support arrangement to ensure it remains fair and reflective of the current situation. Failing to report significant changes may lead to overpayments or underpayments, which could result in financial or legal complications.
If you disagree with a child support assessment or believe it no longer reflects your circumstances, you can request a review or appeal the decision. The main options include:
- Applying for a Change of Assessment in Special Circumstances
You can apply for a reassessment if you experience significant changes, such as income loss, additional costs for the child, or other special circumstances. Services Australia will review your application and adjust the assessment if necessary. - Objecting to a Decision
If you disagree with a decision made by Services Australia, you can lodge a formal objection within 28 days (or 90 days if you live overseas). This process involves providing evidence to support your case. - Appealing to the Administrative Appeals Tribunal (AAT)
If you’re unsatisfied with the outcome of an objection, you may escalate the matter to the AAT for an independent review. This option is available for certain types of decisions, including assessments and change-of-assessment decisions.
Seeking legal advice can help you understand your rights and navigate these processes effectively.
Child support payments are intended to cover the basic costs of raising a child, including food, clothing, housing, and general living expenses. However, additional expenses like private school fees, medical costs, and extracurricular activities are not automatically included in standard child support assessments.
Parents can agree to include these expenses in a Binding Child Support Agreement or through a court order. If there’s no agreement and you want these costs covered, you may need to apply for a change to the assessment based on special circumstances. Services Australia will consider whether it’s reasonable and fair to include these costs in the assessment.
Yes, child support agreements can be modified or terminated under certain circumstances:
- Limited Agreements can be terminated after three years or if the child support assessment changes significantly.
- Binding Agreements require mutual consent from both parents or a court order to be varied or terminated.
- In all cases, major changes to circumstances, such as financial hardship or changes in care arrangements, may justify reviewing or terminating the agreement.
We recommend obtaining legal advice when seeking to change or terminate an agreement to ensure compliance with the law and the protection of your rights.
If a parent fails to pay child support as required, Services Australia can take enforcement actions to recover unpaid amounts. These actions may include:
- Seizing wages or tax refunds.
- Withholding government payments.
- Collecting funds from bank accounts.
- Pursuing legal action.
You should communicate with Services Australia if you’re experiencing financial difficulties, as ignoring payments can lead to significant penalties and complications.
Yes, if a child lives with a grandparent or another non-parent caregiver, that caregiver can apply for child support from one or both parents. The same rules and processes apply for determining child support, including assessments by Services Australia to calculate the amount owed by the parents.
Child support typically ends when a child turns 18. However, in some cases, payments can continue if:
- The child is completing their final year of secondary school.
- Both parents agree to extend payments through a Binding Agreement.
- A court orders support for adult children under specific circumstances, such as disability or ongoing education.
This is known as adult child maintenance. Eligibility depends on you and your family’s individual situation.
Get advice and support from an experienced child support lawyer.
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