Child Support

Child support refers to the financial assistance provided for a child, transferred from one parent or caregiver to another. Legal obligations dictate that parents must financially support their children until they reach the age of 18, and in certain situations, even beyond the child’s 18th birthday.

The determination of the amount of child support one party is legally required to pay is typically conducted through an administrative assessment by the federal Department of Human Services – Child Support, often referred to as “the Child Support Agency.”

Alternatively, parties have the option to establish private agreements regarding child support payments, which can exceed the amount determined by the administrative assessment. These agreements are known as Child Support Agreements (further details provided below).

While the administrative assessment process can be intricate, the informational resources and contact details available through the Child Support Agency can assist in clarifying your obligations or entitlements. Additionally, the Child Support Agency offers a calculator to provide a rough estimate of whether you will be obligated to make payments or entitled to receive them.

It’s important to note that administrative assessments do not encompass children beyond the age of 18, requests for financial support from step-parents, and certain international child support matters. These cases are adjudicated by the courts.

Applications for administrative assessments

The responsibility to provide child support commences once the Child Support Agency accepts an application for an administrative assessment, with the possibility of retroactive assessment in certain situations.

A parent or eligible caregiver can initiate the process by submitting an application for child support, which entails disclosing their income, their partner’s income, and the amount of time the child spends with each parent. The Child Support Agency will then apply a formula that considers:

• Both parents’ incomes
• An allowance for self-support
• The number of nights the child stays with each parent
• The child’s age
• The typical cost of raising children of that age

Subsequently, the Child Support Agency will issue an administrative assessment detailing the payment obligations between the parties.

The agency can facilitate the collection and distribution of payments on behalf of one party, or the parties can come to an agreement to make payments directly to each other.

Varying administrative assessments

There are two avenues for modifying an administrative assessment:

1. Modifying an element within the formula: This involves adjustments such as changes in a party’s income or alterations to the care arrangements for the child. The Child Support Agency will then recalibrate the child support rate according to the revised formula.
2. Departing from an administrative assessment: In certain exceptional circumstances, a party can request the Child Support Agency to amend the assessment. This requires demonstrating that the new rate is “just and equitable” and “otherwise proper.” The Agency evaluates such requests based on specific criteria. Hence, seeking legal counsel is advisable to determine whether there are grounds to apply for or contest a departure.

Child Support Agreements (private agreements)

Parties are not obligated to undergo an administrative assessment if they mutually agree on the financial support arrangements.

While the administrative assessment typically addresses “periodic” child support or regular cash payments, parties may opt to modify this periodic amount and/or incorporate payments for “non-periodic” expenses.

Periodic payments refer to amounts paid at regular intervals such as weekly, fortnightly, or monthly. Non-periodic expenses encompass various items such as school fees, extracurricular costs, educational expenses, medical fees not covered by Medicare or private health insurance, and private health insurance premiums.

Formalizing a private agreement into a Child Support Agreement is often recommended to ensure clarity and enforceability for all parties involved.

There are two categories of Child Support Agreements:

1. Limited Child Support Agreements
2. Binding Child Support Agreements

Limited Child Support Agreements

Limited Child Support Agreements are typically recommended for arrangements that require flexibility in the future, offering the following characteristics:

• They must be documented in writing and signed by both parties. While there’s no mandatory requirement for independent legal advice before signing, it’s strongly encouraged to ensure full comprehension of the agreement and its implications.
• The agreement necessitates an existing administrative assessment, and the agreed-upon amount cannot be lower than the assessment.
• They have a duration of three (3) years, after which either party retains the option to terminate the agreement.
• Termination of the agreement can occur through various means:
  • By court order when specific conditions are met,
  • By mutual agreement between the parties, which may involve entering into a Termination Agreement or a new Child Support Agreement,
  • If the administrative assessment undergoes a change of at least 15% due to circumstances not addressed in the agreement, or
  • If one of the parties ceases to be an eligible caregiver for a defined period.

Binding Child Support Agreements

Binding Child Support Agreements differ from Limited Child Support Agreements in several key aspects:

• They do not mandate an existing administrative assessment, allowing parties to agree on any amount payable for child support.
• They have the flexibility to incorporate lump sum payments.
• Typically, they are designed to remain in effect until the child reaches 18 years of age. If the child turns 18 while still attending secondary school, the agreement may extend until the last day of school for that year.
• Both parties must obtain independent legal counsel to advise them on the implications, advantages, and disadvantages of the agreement.
• Like Limited Child Support Agreements, they can be terminated under certain conditions agreed upon by the parties, by mutual consent, or if one of the termination events outlined in the agreement occurs. However, they do not include the provision regarding a 15% variation in the administrative assessment.

Binding Child Support Agreements are typically preferred when parties aim to establish final arrangements for child support.

Adult Child Maintenance (after a child turns 18 years of age)

In specific circumstances, a party has the option to petition the courts to secure financial support for a child who has surpassed the age of 18. These situations typically involve scenarios where the child is pursuing higher education at the tertiary level, coping with a severe illness, or facing significant physical or mental disabilities.