Where there is a child or children of a separated couple, the concept of child support will need to be considered.
What is child support?
Parents have a legal obligation to financially support their children. Child support is the payment from one parent to the other parent for the financial support of children under the age of 18 years.
There are two types of child support payments:
- Periodic payments – these are weekly or fortnightly or monthly cash payments to the other parent; and
- Non-periodic payments – these are specific payments for services or goods like educational expenses (school fees, uniforms), extra curricular activities and private health insurance or gap medical expenses not covered by private health insurance or Medicare.
How much do I have to pay or receive as child support?
The amount of child support (periodic) a parent is required to pay or receive is calculated by way of a formula set by Services Australia. The amount required to be paid depends on the individual circumstances of you and the other parent including your respective incomes and expenses and the number of nights the children spend with each of you. Services Australia has a child support estimator calculator on their website.
To be eligible to receive child support you must have care of a child at least 35% of the time over a 12 month period from when the assessment commences.
There is no legal obligation to make non-periodic payments in addition to periodic payments unless otherwise agreed between the parents.
Can my spouse or partner and I come to our own arrangement?
You and the other parent can enter into a private child support arrangement by way of a Binding Child Support Agreement or Limited Child Support Agreement. This can be in addition to or in lieu of an assessment by Services Australia.
Binding child support agreements
A Binding Child Support Agreement is intended to last until a child attains the age of 18 years or until another child support terminating event. It can provide for periodic and non-periodic payments. There is no requirement that the payer must pay what they are assessed to by Services Australia.
Prior to entering into this type of agreement, both parents are required to obtain independent legal advice.
Limited child support agreements
A Limited Child Support Agreement operates for a period of up to three years and can include periodic and non-periodic payments. You are required to have an assessment with Services Australia before being able to enter into this type of agreement and the periodic payment cannot be less than the assessed amount.
The parties are not required to obtain independent legal advice prior to entering into such agreements but it is recommended they do so.
Frequently asked questions on child support
- Are my government benefits impacted by the receipt of child support?
Yes. The amount of child support you receive is linked to the amount of Family Tax Benefits you are entitled to. You must notify Centrelink of any child support agreement to avoid penalties in the future.
- Are there any penalties for not paying child support when I have been assessed to pay?
Yes. Services Australia may contact your employer and have your child support payments debited from your income. Services Australia may also intercept any refund you receive pursuant to a tax return and apply it to an outstanding debt or recover the debt from any government benefits you are receiving. In more extreme cases where a significant debt has accrued over an extended period of time, Services Australia may apply to sell any property that you own or restrict your ability to travel oversea by seeking a Departure Prohibition Order.
- What do I do if I think Services Australia has incorrectly assessed my child support obligation or payment?
You can file an objection to the assessment. The most common mistakes are where Services Australia has incorrectly determined a parent’s income or the care arrangements for the children when assessing the level of support a parent should receive or be assessed to pay. In certain circumstances you can apply to change an assessment on the basis of “special circumstances” such as where high costs are incurred due to maintaining a child with special needs or associated in facilitating the child spending time with the other parent, where the parents live far apart (for example, interstate or overseas).
- Do I have to pay or am I entitled to get child support for a child over the age of 18 years?
The obligation to pay child support usually terminates when a child attains the age of 18 years. However, a party may apply to Services Australia to extend the payment of child support if the child is still completing secondary education in the year they turn 18 years. This application has to be made when the child is 17 years.
What is adult child maintenance?
In certain circumstances you may be obligated to pay or entitled to receive adult child maintenance which extends beyond the child attaining 18 years of age. Such circumstances can include where the child has a serious illness or disability or is undertaking tertiary education.
How Moores can help
We can assist in determining what the right child support arrangements are for you and how best to formalise these arrangements.
Contact us for more detailed and tailored help or get started with the Moores Family Law online assistant. The service is confidential and free, you’ll get valuable feedback and a personalised separation plan.