When parents separate, their primary concern is often the wellbeing of their children. One of the most important responsibilities following separation is ensuring that both parents continue to provide for their children’s financial needs. Child support payments play a central role in this obligation.
In Australia, child support is governed by the Child Support (Assessment) Act 1989 and is administered by Services Australia (Child Support). Understanding how it works, how much you might pay or receive, and the options available to manage it, can make a significant difference to your post-separation arrangements.
What is Child Support?
Child support is the ongoing financial support one parent provides to the other to help cover the costs of raising children after separation or divorce. It is intended to contribute to:
- Housing and food
- Clothing and school-related costs
- Medical expenses
- Other general costs of raising a child
Both parents have a legal duty to support their children, regardless of who the child lives with or the nature of their relationship with each other.
Who Pays Child Support?
Generally, the parent with less day-to-day care of the children will pay child support to the parent with primary care. However, the amount payable depends on a number of factors and is not necessarily based solely on who has the children most of the time.
Child support can be arranged in two ways:
- Assessment by Services Australia (Child Support)
- Private agreement between the parents
1. Child Support Assessment
Services Australia uses a legislated formula to calculate child support. This formula considers:
- Each parent’s income
- The costs of raising children based on national data
- The amount of time each parent cares for the children
- The number and age of the children
This process produces a child support assessment, which states how much one parent is required to pay.
Parents can choose to have these payments:
- Privately transferred between them, or
- Collected and enforced by Services Australia
Assessments are regularly reviewed and can be varied if circumstances change, such as changes in income, care arrangements, or new children being born.
2. Private Child Support Agreements
Parents can agree to manage child support privately rather than relying on the assessment process. There are two main types of private agreements:
a. Limited Child Support Agreements
- Must be based on an existing Services Australia assessment
- Do not require legal advice
- Can include cash payments or non-cash contributions (e.g. paying school fees or health insurance)
- Can be terminated after three years or sooner in some circumstances
b. Binding Child Support Agreements
- Can be made for any amount, regardless of the assessment
- Require independent legal advice for both parties
- Are legally enforceable and difficult to set aside
- Can include both periodic and lump sum payments
These agreements allow parents to tailor child support arrangements to their specific family needs, including payment of private school fees, extracurricular activities, or lump sums in place of regular payments.
What Does Child Support Cover?
Basic child support payments are expected to contribute to general costs like:
- Food, clothing, and transport
- Education at public schools
- Health care not covered by Medicare
Where children attend private schools or have significant additional needs (e.g. disability, medical conditions, elite sport), parents often negotiate additional contributions as part of a private child support agreement or a broader financial settlement.
What If Child Support Isn’t Paid?
Services Australia can collect and enforce payments through a range of methods, including:
- Deductions from wages or Centrelink payments
- Garnishing tax refunds
- Seizing assets or placing departure prohibition orders
If a private agreement is in place and one party stops paying, the other may need to enforce the agreement through court.
How Does Child Support Interact With Property Settlement?
Child support is separate from property settlement under Australian law. However, you should always consider child support when negotiating a financial settlement, especially if:
- One party will cover school fees or medical expenses as part of child support
- Lump sum payments are made instead of regular payments
- You want to finalise all financial matters in one agreement
If you’re entering into a Binding Financial Agreement or applying for consent orders, it’s wise to ensure your arrangements for child support are clearly documented and legally enforceable.
Key Takeaways
- Child support is a legal obligation that applies after separation or divorce.
- Payments can be managed through Services Australia or a private agreement.
- The amount is based on income, care arrangements, and the costs of raising children.
- You can tailor child support to your circumstances, but some agreements require legal advice.
- It is essential to include child support discussions in broader financial negotiations.
Get Advice Before You Decide
At Swanwick Murray Roche, we help parents create clear, workable child support arrangements that suit their family circumstances and protect their legal rights. Whether you need help with a Services Australia assessment, preparing a private agreement, or enforcing an existing arrangement, our family law team can assist.
Talk to an Experienced Family Lawyer
At Swanwick Murray Roche, we guide clients through the legal and practical issues of separation every day. Our experienced family law team will help you understand:
- Whether you’re entitled to receive or may need to pay child support
- How to deal with child support in your property settlement
- Your best options for reaching a fair and binding outcome
Don’t leave it too late – contact us today for a confidential, no obligation appointment.
Let’s help you secure your financial future with clarity and confidence.
Disclaimer
This article provides general information only and does not constitute legal advice. For specific advice tailored to your circumstances, please contact one of our experienced family lawyers.
