An introduction to the child support system in Australia

Are you new to child support, or in need of a quick reference guide? This article provides an overview of the Australian child support system.

What is child support?

In simple terms, child support is the financial support provided to meet the care needs of a child.

Who is liable to pay child support?

A person will be liable to pay child support if they are:

• a parent of the child (biological, adoptive or with the assistance of reproductive technology); and
• a resident of Australia (within the meaning of the Income Tax Assessment Act 1997) or a resident in a prescribed jurisdiction - those countries are listed here.

What are the different types of child support?

Child support can be paid:

• periodically - for example, money paid every week or month;
• non-periodically - for example, paying for certain expenses such as private health insurance or private school fees; or
• less frequently, paid in a lump sum.

How is child support determined?

Services Australia

Generally, the amount of child support payable by one parent to the other is determined by Services Australia (Child Support), and is calculated using a formula outlined in the Child Support (Assessment) Act 1989 (Cth) (Act).

Several factors are considered as part of the formula, including:

• the income of each parent;
• whether a parent cares for or pays child support for other children;
• the cost of raising the child/ren and their age/s; and
• the level of care each parent provides.

Services Australia has an online child support calculator that can be used to estimate the level of child support that may be payable in your circumstances.

Private agreement

Alternatively, parents can make a private agreement that is either a "Binding Child Support Agreement" or a "Limited Child Support Agreement".

A Limited Child Support Agreement requires a child support assessment to be in place, and the agreement must provide a the level of child support that is equal to or greater than the assessment. Limited Child Support Agreements are usually in place for a short period of time (up to three years). This type of agreement does not require independent legal advice and is intended to be a flexible arrangement.

A Binding Child Support Agreement does not require the parents to obtain a child support assessment and can only be terminated in limited circumstances. Before signing the agreement, each party is required to obtain independent legal advice about their rights of signing the agreement and the advantages and disadvantages of the agreement. Binding Child Support Agreements are intended to provide a greater level of certainty and finality about child support.

Private agreements allow parents to agree on the lump sum, periodic or non-periodic payments for their children, and make bespoke provisions that accommodate the financial needs of their children. Both types of agreements need to be registered with Services Australia and the court.

What if I don't agree with the amount calculated (by Services Australia)?

If you obtain an assessment from Services Australia and are not happy with the amount of child support that is assessed as being payable, you can take the below steps to contest the result.

1. Submit the "Application to change your assessment - Special Circumstances Form" with Services Australia. There are 10 reasons you can rely on to change your child support assessment. Examples include that a child has special needs, or that there are extra costs in educating the child in a way that both parents intended (e.g. costly private school fees).
2. The other party will be notified of your application and will be given an opportunity to respond.
3. The Child Support Registrar will make a decision.
4. If you do not agree with the decision of the Child Support Registrar, you can file an "Objections to Child Support Decision".
5. The Child Support Registrar will then make a decision in response to your objection.
6. If you do not agree with the Child Support Registrar's decision in response to your objection, you can seek a review of their decision by the Administrative Appeals Tribunal (AAT).
7. If you object to the decision of the AAT, and/or the Child Support Registrar and the AAT refuse to determine your matter due to the complexity of the case, you can apply to the Federal Circuit and Family Court of Australia for a "departure order", which is effectively an order "departing" from the decision of the AAT or the Child Support Registrar.
8. You may also be able to apply for a departure order if you are already involved in court proceedings and the court is satisfied that it is appropriate to consider the departure order as part of your case.

What if I'm owed a child support debt?

If your child support has been assessed and determined by Services Australia, you can apply to Services Australia to enforce the debt. However, this is usually limited to three months of unpaid payments (which may increase to nine months in exceptional circumstances).

If you are owed child support arrears for a longer period of time, or under a private agreement, you can apply to the court for an enforcement order. The court has a wide discretion when determining whether to enforce a child support debt, and will consider factors such as whether the party owing the debt knew or ought to have known of their obligation to pay, whether the owing party had appropriate or reasonable reasons for failing to meet their obligation to pay and if the party who was entitled to the child support pursued their rights to payment in a timely manner.

Next steps

There are many factors to consider in arriving at the right child support arrangements for you and your family. For more targeted support, please do not hesitate to contact our specialised team of family & relationship lawyers to discuss your options.