- How does child support work?
- What does child support cover in Australia?
- What happens if child support isn’t paid?
- When does child support end?
How Does Child Support Work in Australia?
Child support is calculated to cover basic day to day expenses. Services Australia can provide a child support assessment and if required, can assist in the management of the obligations. Services Australia uses a formula that considers each parent’s circumstances including:
- Income
- Percentage of care each parent provides a child
- Each child’s age
This determines whether you will pay or receive child support. In short, typically you will pay child support if your percentage of care is less than your percentage of the total of both incomes.
What Does Child Support Cover in Australia?
Services Australia calculates the costs of how much parents spend on children in Australia however the calculation does not include additional expenses such as extra-curricular sports, private health, additional medical expenses etc.
If you wish to consider this in the child support amount, you may enter into a Limited Child Support Agreement. This is in place for a maximum period of three years. Another option is a Child Support Departure Order which essentially outlines that someone should be paying more or less than what the child support assessed amount is.
Alternatively, you may wish to have a Binding Child Support Agreement put in place. This can take into account additional expenses incurred that directly relate to children that you both agree to continue paying. This often includes expenses such as sports or recreational activities, health related such as private health and elective procedures, etc.
Alternatively, sometimes parents just agree between themselves as to what their arrangements are. One example of this is when both parents routinely deposit a certain amount of money into a bank account each week and then they both use that bank account to pay for the children’s expenses.
Obviously there has to be a certain level of trust between parents for such an arrangement. But that does work for some people where parents are able to reach an agreement between themselves.
What Happens If Child Support Isn’t Paid?
If you have either gone through the process of Services Australia Child Support Assessment, they can assist in the management and follow up of unpaid child support.
If you have a Binding Child Support Agreement in place, you can apply to the Court in relation to the breach of the agreement.
If there is child support owing and there is a belief that the payer intends to leave Australia, the other parent can apply to the Court for Departure Prohibition Orders. But to do so there needs to be a child support assessment in place and there is a particular criteria that you need to satisfy before the Court would make such an order.
If you have not completed either the Child Support Assessment or sought legal advice and formalised your agreement by way of a Binding Child Support Agreement, then recovering owed funds can be far more challenging and costly to recoup (and resume).
When Does Child Support End?
Generally speaking, child support ends at 18 years of age. However, if your child turns 18 in their last year of high school, you can apply to request for an extension.
If a child turning 18 continues to be a dependent due to medical conditions for example, an application will need to be made before they turn 18 for Adult Child Maintenance.
Child support payments can also end if a child passes away or becomes self-sufficient or is in a de facto relationship or marriage.
Where To Next?
If you are parents who are yet to determine your child support arrangements, start by getting an estimate of what a parent is to pay the other using these Services Australia tools:
While child support obligations are to be dealt with directly by Services Australia, if you wish to include the calculation to include additional expenses for children that are beyond the basic expenses, seek family law advice to strategically plan your child support arrangements to ensure the best possible arrangement. And, if one parent lives outside of Australia, or there are additional or unique needs that need to be considered, a specialist with experience in matters like these, is essential.
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