When parents separate, it is important that proper arrangements are established for the children’s ongoing financial support. In Australia, parents are financially obligated to provide child support for their children under the Child Support (Assessment Act) 1989.
Child support is to be provided for all children living in Australia following separation who are under 18, or if the child turns 18 during their final year of secondary education then that child is also eligible for support until the completion of that school year.
There is a requirement for parents to be residing in Australia, however, Australia has arrangements with various countries to facilitate the collection of child support. Parents are able to make an application through Services Australia for child support. Services Australia will make an administrative assessment of the child support to be paid by a parent and they will also collect payment.
The cost of living in Australia is high, and the administrative assessment provided by Services Australia usually does not include all costs of financially maintaining a child. There are non-periodic payments that fall outside of the administrative assessment that parents can agree to pay for the children, including private school fees and education expenses, private health insurance, gap in medical expenses not covered by Medicare or private health insurance, and any other expense of the child.
Parents can enter into a Binding Child Support Agreement or Limited Child Support Agreement to formalise the non-periodic payments to be made by one parent to the other, or to set an amount for the periodic amount to be paid.Unlike child support, child maintenance is governed by the Family Law Act 1975.
The Court can make an order for child maintenance if a party cannot apply for child support under the Child Support (Assessment) Act 1989. The Court can also make an adult child maintenance order for a child over 18 and if maintenance is necessary for the child to complete their education or because of a mental or physical disability of the child.
It is important to obtain advice from an experienced family lawyer in relation to different options for child support and maintenance. We can assist with having negotiations about the discrete issue of child support and maintenance or in connection with your parenting or property dispute if there is a child of your relationship.
We provide specialist advice on child support and maintenance, helping parents establish appropriate financial arrangements that support their children’s ongoing needs and future wellbeing.
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Child support is typically calculated using a formula outlined in the Child Support (Assessment) Act 1989. This formula takes into account various factors to determine the amount of child support one parent should pay to the other. The primary goal is to ensure that both parents contribute to the financial support of their children in a fair and reasonable manner.
The key factors that are considered when determining the amount of child support to be paid includes the income of both parents, the percentage of care that each parent provides to the child, the costs associated with the child including education, health care and special needs, whether there are any children from previous relationship and a self-support amount to cover each parents’ basic living expenses before the child support is calculated.
Child support assessments are usually conducted by Services Australia, being a government agency which administers the child support scheme. Parents can also come to an agreement between them but they should obtain legal advice first and have a lawyer prepare the formal child support agreement. This agreement should then be registered with Services Australia.
Both parties have obligations and responsibilities to financially support their children. These obligations are outlined in the Child Support (Assessment) Act 1989. The parent required to pay child support should make the payments on time and failure to make payments may result in legal consequences. The parent receiving child support should ensure the funds received are to meet the children’s needs including education, health care and general well-being.The paying parent is required to inform Services Australia of any significant changes in their circumstances that may affect their child support liability for example, changes in income, employment or living arrangements. It is important that both parents provide honest and accurate information to Services Australia for the purpose of their child support assessment.
Child support assessments can be changed under certain circumstances, usually if there has been a significant change in circumstances of either parent or a change to the child’s needs that would impact the existing child support assessment. Some of the common reasons for seeking a change to the assessment are change in income, change in care arrangements, change in expenses, by mutual agreement between the parties or an application has been made by a parent to Services Australia to change the assessment based on new circumstances.
The non-payment of child support is taken seriously in Australia. There are mechanisms which can be put in place to enforce child support obligations such as:
Services Australia can enforce child support payments. They have a range of enforcement powers including collecting child support directly from the paying parent’s wages, bank accounts or tax refunds;
1. Issuing notices and warnings by Services Australia;
2. Imposing penalties by Services Australia which can include fines;
3. Garnishing wages where Services Australia can arrange for child support payments to be deducted directly from the paying parent’s wages by their employer;
4. Court proceedings through the Federal Circuit and Family Court of Australia, including orders being made by the Court for imprisonment (which is a last resort).
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