When separating and children are involved, child support is often a key consideration.

Many clients think Family Lawyers and The Family Law Act 1975 (Cth) determine child support, but child support in Australia is predominantly handled by Services Australia under the Child Support (Assessment) Act 1989 (Cth).

In some circumstances, this Act may not apply, for example where child support is required for a child over the age of 18, and instead, a parent can seek a child maintenance order under the Family Law Act 1975 (Cth).

Simply put, child support is financial aid for children under 18, while child maintenance is for adult children over 18, often to help them complete school or because they have a disability or illness requiring care.

Child support can be arranged either through a private financial agreement or via a child support assessment.

Child Support Assessment

If you are seeking a child support assessment, Services Australia will conduct an administrative assessment and determine the appropriate amount after receiving an application from either parent or the child’s carer.

Typically, the payee applies for a child support assessment upon separation.

The factors that will be taken into consideration include:

• The parent’s taxable income for the relevant year
• Reportable fringe benefits total for that year
• Target foreign income for that year
• Total net investment loss for that year
• Tax-free pensions or benefits received that year
• Reportable superannuation contributions for that year

Child Support Assessments may be revised due to reasons such as correcting errors or inaccuracies in statements, or if there is a change in the care percentage of the child.

Private Financial Agreement

A private financial agreement enables both parents to privately arrange financial support for their children. These legally enforceable agreements are either, “limited support agreements” or “ binding support agreements” and require written documentation.

1. Limited Agreements: A limited child support agreement is a formal arrangement specifying regular payment amounts and expenses. It’s often considered more flexible and cost-effective than a binding agreement, lasting up to three years. This provides certainty for both paying and receiving parents. Such agreements can be extended by mutual consent or terminated due to unforeseen circumstances, like unemployment. Upon termination, parties can either create a new agreement or request a Child Support Assessment from Services Australia.
2. Binding Child Support Agreements: These agreements are harder to terminate but offer a more definitive resolution on child support, continuing despite changes in income or employment. Before entering into such an agreement, each party must obtain independent legal advice. Binding agreements remain effective until a specified event, such as the child reaching 18 years of age, and include regular and non-periodic expenses like medical, dental, and school fees.

Whatever decision you make regarding child support, we are here to help you understand your obligations, provide advice on modifying them, and ensure your legal rights are safeguarded. Contact our office today on 07 5609 4933 for a free initial consultation.