Child support payments are payments made between separated parents to financially support the cost of raising a child or children. In some circumstances these payments may be made by both parents to a third party who is caring for the child such as a grandparent or other legal guardian.
Child support payments are generally organised through Services Australia and amounts to be paid are assessed per child by Services Australia. Alternatively, parents can make their own child support arrangements if they are able to do so.
Obtaining legal advice is the best way to ensure an appropriate arrangement is made.
Child support is separate to spousal maintenance that a better off, higher income spouse may be required to pay to support the lower income spouse’s living expenses.
Parties may also enter into a private binding child support agreement if they agree on additional financial support for their children such as for private school fees or extracurricular activities.
Purpose of Child Support
Child supports exists in order to manage the costs associated with raising the child such as purchasing food, clothing, education, housing, travel, medical costs and other expenses.
Child support ensures that both parents are providing for the child even where the child does not reside equally between both parents.
How it’s Calculated
Where child support is managed through Services Australia, an assessment formula is used to determine support amounts. The formula involves assessment of the following:
- Both parents child support income is calculated based on their income a minus self-support amount;
- Both parents combined income;
- The percentage of each parent’s income;
- Both parent’s percentage of care for the child;
- Each parent’s percentage of costs;
- Each parent’s child support percentage;
- The costs of the child based on age; and
- Total amount of child support payable.
The main purpose of child support is to ensure the child is cared for financially by both parents. Services Australia assesses the payments to be made based on the income of both parents and the number of days per fortnight that the child or children spend with each parent.
Where the child support arrangement is made privately without the involvement of Services Australia, different methods of determining payments can be used based on the specifics of the case, for example to allow for the payment of private school fees and extra-curricular activities, parties commonly enter into private child support agreements.
Private Child Support Agreements
As mentioned above, child support arranged by Services Australia does not cover expenses such as private school fees and extra-curricular activities. Where parents want these expenses covered, they can agree to create a binding child support agreement. Both parents must receive separate independent legal advice in relation to agreement. These agreements include clauses stipulating terms of the agreement such as amounts to be paid by which parent, when and how payments will be made, when the agreement will cease, such as when the children turn 18, and termination arrangements.
Payment Options and Enforcement
Child support payments may be made through child support collection, private collection or through self-management. Child support collection of payments occurs where the amount is set by a child support assessment, agreement, or court order and Services Australia tells the parent how and when to pay, they collect the money from the paying parent and transfer the money to the receiving parent.
Private collection of payments occurs where a court, agreement or child support assessment sets the amount to pay and both parents organise how and when to make payments.
Self-managed payments occur where Services Australia is not involved and both parents agree on the amount of child support, agree on how and when to pay it and manage the payments themselves.
Services Australia has powers to receive overdue child support through various types of income deductions, litigation, and prosecution.
Where the child support is privately organised, legal advice should be sought to draft a letter of demand, followed by initiating court proceedings where attempts to obtain payment are unsuccessful.
Need Guidance on Family Law Matters?
Navigating family law can be complex and emotionally challenging. Whether you’re dealing with custody issues, divorce proceedings, or any other family law matters, you don’t have to face it alone. Contact Matthies Lawyers today for expert legal advice and compassionate support. Let us help you find the best path forward.
Reviewing and Modifying Child Support Orders
If a party does not agree with child support orders made, they may object to decisions made by Services Australia by first calling Services Australia to discuss the objection, followed by submitting an objection form. Private child support agreements will generally have a clause stipulating how the child support can be modified, this is usually by making a new agreement.
Why Legal Assistance in Child Support Matters
The complexities involved in child support cases often necessitate the assistance of a knowledgeable and experienced legal practitioner. Here’s why:
- Understanding legal obligations: The law surrounding child support is multifaceted and can be difficult for a layperson to fully comprehend. Legal professionals can help clarify these obligations and rights
- Negotiation and Mediation: A lawyer can serve as a negotiator or mediator in situations where parents are having difficulties reaching an agreement. They can assist in establishing a fair and manageable child support arrangement.
- Advocacy: If child support disputes progress to court, having a lawyer represent your interests can be crucial. They can present your case effectively and ensure that your perspective is heard.
- Modification and Enforcement: Child support orders may need modification over time due to changes in circumstances. A lawyer can help navigate this process. In cases of non-compliance, they can also assist in enforcing the child support order.
- Confidentiality and Objectivity: Lawyers provide a confidential and objective third-party perspective. They are committed to protecting your legal rights while also striving for the best interest of the child or children involved.
FAQs
How is “income” defined when calculating child support in Australia?
Income includes any taxable income – that is your gross income, with deductions for amounts needed to support yourself.
Does superannuation impact child support calculations?
Superannuation from after-tax income is generally not counted as taxable income for the purposes of child support
What specific expenses are typically covered by child support payments?
Child support typically covers the general costs of raising a child such as food, education expenses, clothing, medical needs and housing costs.
Are there any common child-raising expenses that are not typically covered by child support in Australia?
Generally private health insurance and private tuition fees are not covered by child support. However, a private child support agreement may be entered to cover these costs.
How long is a parent generally required to pay child support?
A parent is required to pay child support usually up until a child turns 18, however if they still require financial support because of an illness or disability, a parent may be required to pay adult child maintenance.
For further information seek legal advice and access the following resources:
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Kate Scolyer – Solicitor– Matthies Lawyers
Should you wish to obtain advice regarding your family law matters, please contact Matthies Lawyers for an obligation-free consultation or call +61 3 8692 2517 today.
Disclaimer: This article contains general information only and is not intended to be a substitute for obtaining legal advice.