Child Support in Australia
There are several options for child support in Australia:
An informal arrangement – which either parent can change at any time.
Administrative assessment of child support based on the child support formula – which may not be accurate, particularly if one parent is self employed or there are extra child expenses such as private school fees.
A Limited Child Support Agreement is operative for a limited time only and can be changed by one parent in some circumstances.
A Binding Child Support Agreement – requires both parents to obtain independent legal advice.
Services Australia (Child Support Agency) is responsible for assessing and collecting child support. The child support system is based on the principle that parents’ primary obligation is to support their natural (or adopted) children.
Separated parents can opt in to the child support system and obtain an administrative assessment of child support, which will determine the how much one parent should pay the other parent periodically. The amount of child support depends on a number of factors, including the age of the child, how many nights the child spends with each parent and each parents income. You can obtain an estimate using the child support estimator on the Services Australia website.
Expenses such as private school fees, extracurricular activities and orthodontic treatment are not taken into account under the administrative assessment, however, parents with these expenses can apply to Services Australia for a change to the assessment based on the ‘special circumstances’ in their matter. Alternatively, a Binding Child Support Agreement can cover all of these expenses.
Parents do not need to obtain an administrative assessment if they can decide for themselves the best way for them both to support their children. However, it is important to consider that private child support agreements can impact on Centrelink payments.
