Child support
Child Support Scheme
The Child Support Scheme is mainly covered by the Child Support (Registration and Collection) Act 1988 (Cth) (‘Collection Act’) and the Assessment Act. There are also court rules and regulations. Parents in same-sex relationships can apply for child support.
Parents have the primary duty to maintain their children until a child reaches the age of 18 years, unless the child is able to support themself, marries or is adopted. In some circumstances, maintenance can be paid for children over the age of 18 years.
The presumptions of paternity are set out in section 29(2) of the Assessment Act. If there is disagreement about parentage and the parents are not willing to have parentage testing, then it may be necessary to go to court (see ‘Application to court’, below).
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For an assessment of child support, separated parents can apply to Services Australia (see ‘Contacts’ at the end of this chapter).
The assessment is based on a child support formula. This formula takes into account:
the combined incomes of both parents;
the care arrangements for the child; and
the age of the child.
The online estimator can be found at https://processing.csa.gov.au/estimator/About.aspx
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Parents must notify Services Australia about the actual care arrangements for the children and the same percentage of care will apply for both child support and Family Tax Benefits (FTB).
If parents disagree on the level of care, Services Australia can make:
a determination based on the actual level of care by considering evidence provided by each parent. You should keep a record of the evidence of the change in care arrangements (the record could include, for example, diary entries, visits to healthcare providers or other services, and third-party statements);
an interim care determination for a temporary period based on a written agreement, or court order about care.
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A woman who gives birth to a child following an artificial conception procedure is the child’s legal parent. If the child is born to a woman while she is married or in a de facto relationship (either a same-sex or opposite-sex relationship) and her partner consented to the artificial conception procedure, then the partner is also the child’s legal parent.
A known sperm donor may be regarded as a parent and have to pay child support.
For more information relating to parentage of children conceived through artificial conception procedures, see Chapter 4.3: Same-sex and de facto couples and families.
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If a parent is on a low income (e.g. Centrelink benefits), minimum child support of $9.98 per week (subject to indexation) to each family is payable (up to a maximum of three families).
The minimum rate does not apply if there is a departure determination, court order or agreement in place (Assessment Act s 66(8)) or if a parent has at least regular care of one or more of the children (Assessment Act s 66(1)).
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A parent who declares a low income but is not on an income support payment may be assessed to pay a fixed rate of $33.07 per child per week (subject to indexation) up to a maximum of three children. This is called a ‘fixed assessment’ and may apply to parents who minimise income to avoid child support.
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The maximum child support payable is also known as the ‘cap’. The maximum child support is applied to the combined income of both parents up to 2.5 times the annual equivalent of all Male Total Average Weekly Earnings (MTAWE) and calculated using the Costs of Children Table.
The MTAWE (subject to indexation) is $85 389. The combined income of both parents is capped at $213 473 per year. For example, on the maximum income of $213 473 per year, the child support payable for three children over 13 years of age is capped at $60 626 per year.
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Parents can make agreements about the way in which child support is paid:
periodic cash payments;
non-cash payments (see ‘Collecting child support’, below); or
a lump sum payment (including by way of property settlement).
There are two types of agreements:
binding child support agreements (BCSA); and
limited child support agreements (LCSA).
The main difference between them is that:
parents are not required to obtain legal advice before entering into an LCSA; and
the amount of child support payable in an LCSA must not be less than the amount calculated in the Services Australia assessment.
Agreements must be in writing and signed by the parties (Assessment Act ss 80C, 80E).
If a parent is in receipt of FTB, the amount of Centrelink benefits the parent will receive is based on the child support formula amount as though the child support agreement was not in place. This is called a ‘notional’ assessment and is worked out by Services Australia.
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A BCSA can only be terminated:
if both parents agree to do so after getting independent legal advice;
by a court order; or
if a parent who is entitled to receive child support ceases to spend at least 128 nights per year with the child (Assessment Act s 80D).
An LCSA can be terminated:
if both parties agree to do so;
by either party after three years;
by either party if the notional assessment changes by more than 15 per cent; or
by a court order; or
if a parent who is entitled to receive child support ceases to spend at least 128 nights per year with the child (Assessment Act s 80G).
How to change child support
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Services Australia may use a default income if a parent has not lodged a tax return or provided income information. Services Australia may only in limited circumstances backdate the income used in an assessment if the parent provides information about their income or if they lodge a tax return outside the prescribed time (Assessment Act ss 56, 58).
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A parent may give Services Australia an estimate of their current income if their income is expected to or has reduced by at least 15 per cent (Assessment Act s 60). If the estimate is accepted, Services Australia may change the rate of child support. A penalty may be imposed if a parent underestimates their income (Assessment Act s 64AF).
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Notify Services Australia if there are any mistakes in the assessment (whether or not made by Services Australia or due to false or incorrect information provided to Services Australia), so that the assessment may be changed (Assessment Act s 75).
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An assessment of child support may be affected by a parent’s change of circumstances (e.g. the birth of another dependent child, unemployment, or change to the arrangements for spending time with a child). Let Services Australia know as soon as changes occur as time limits may apply and some changes may not be backdated.
If separated parents reconcile, Services Australia will suspend child support liability under an assessment (Assessment Act s 150E) for six months. Services Australia will amend the administrative assessment depending on when they are notified/become aware of the change in care arrangements.
Post-separation costs
Following separation and in some circumstances, either parent may apply to Services Australia to exclude additional income earned to meet post-separation costs. To apply, the requirements in section 44 of the Assessment Act must be met.
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Either parent may apply to Services Australia for an assessment to be changed (Assessment Act s 98B). Services Australia may also initiate a change of assessment (COA) in special circumstances (Assessment Act s 98K). You cannot apply for a COA if your case has ended.
A COA may not go back in time (more than 18 months and less than seven years from the date of lodgement), except with the court’s permission (see ‘Application to court’, below).
To apply for a COA, you must show that one of the reasons below apply, that there are special circumstances, and that it is just, equitable and proper to change the assessment (Assessment Act s 117(1)).
The reasons to apply for a change include:
the costs of helping the parent spend time or communicate with the child;
the special needs of the child;
costs of the child being cared for, educated or trained in the manner the parents intended;
income, earning capacity, property or financial resources of the child;
money, goods or property received by the child, payee or other person for the benefit of the child;
high childcare costs;
either parent’s necessary expenses for supporting themselves;
income, earning capacity, property or financial resources of either parent;
legal duty to maintain another person or other child; and
additional income earned for the benefit of a resident child (for the definition of ‘resident child’ see Assessment Act s 117(10)).
To apply for a COA, fill in the CS1970 form at www.servicesaustralia.gov.au/individuals/forms/cs1970.
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A paying parent can apply for an administrative review under regulation 11 of the Child Support (Assessment) Regulations 2018 (Cth) if, due to exceptional circumstances, they were unable to provide information about their adjusted taxable income at the correct time but did so within a reasonable time frame in light of the exceptional circumstances.
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An objection may only be lodged against some decisions made by Services Australia (see Collection Act s 80). An objection must be made within 28 days of receiving the notice from Services Australia or longer by seeking an extension of time (Assessment Act ss 81, 82). The other parent is provided with a copy of the objection together with any attached documents to respond.
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The Administrative Review Tribunal (ART) (the Social Services and Child Support Division) can review certain objection decisions made by Services Australia (Collection Act s 89). An application may be made to the ART within 28 days of receiving the letter or notice of objection decision (or longer, by seeking an extension of time).
For the ART’s contact details, see ‘Contacts’ at the end of this chapter. Get a lawyer’s advice with your application to the ART.
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An application to court can be made in the following circumstances:
Paternity disputes – the court will decide the parentage dispute and declare if a person should or should not be assessed in respect of the costs of a child (Assessment Act ss 106A, 107).
Repayment of child support if person found not to be the father – the court will decide if an order should be made for repayment of the child support wrongly paid (Assessment Act s 143). The amount ordered to be repaid is able to be registered for collection by Services Australia (Collection Act s 17A).
Lump sum or other non-periodic amount (Assessment Act s 123).
Terminating a child support agreement where parents cannot agree to change or end a child support agreement (Assessment Act s 136).
Departing from a child support assessment if Services Australia or the ART says the case is too complex or both parents have another application in court and the court is satisfied that it would be in their interest to consider both matters together, and there are special circumstances (Assessment Act s 116(1)).
Obtaining permission of court to extend the time to change an assessment beyond 18 months and up to seven years (Assessment Act s 111).
Appealing an ART decision on a question of law (Administrative Review Tribunal Act 2024 (Cth) (‘ART Act’) s 172(1)).
Appealing to the FCFCOA against a departure prohibition order (DPO) (Collection Act s 72Q) (see ‘Departure prohibition order’, below).
Enforcing unpaid child support (see ‘Enforcement order’, below).
Temporarily stopping an assessment, collection or payment of child support (also known as a ‘stay order’). This can happen where there is an application to Services Australia, the ART, or the court, which has not yet been decided. The court is able to make a stay order if it considers that it should do so, taking into account the interests of those who may be affected (Collection Act s 111C; ART Act s 32(2)).
Get legal advice to make sure you have correctly applied to the court, within the time allowed. If your application is incorrect, it may be dismissed and the court may order you to pay the legal costs of the other party.
Collecting child support
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Parents can arrange private collection where payments are paid by one parent directly to the other parent. Keep receipts or a record of payments as proof of payment.
If private collection arrangements are not working, contact Services Australia to take over the collection of child support payments (see ‘Collection by Services Australia (Agency Collect)’, below).
Risk of private collect
To avoid overpayment of FTB:
ask Centrelink to pay your FTB by the disbursement method; and
ask Services Australia to collect your child support.
If not, Centrelink will re-calculate your FTB for past years if the payer’s tax returns show income higher than the assessment as it is assumed that you are entitled to receive more child support.
You can personally take court action to recover any child support that has not been paid (Collection Act s 113A) (see ‘Enforcement order’, below). However, note that you are responsible for your own legal costs.
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Services Australia can collect child support in accordance with the assessment and collection may be backdated for three months or up to nine months in exceptional circumstances.
Methods of Services Australia collection include:
deduction from salary, wages; or
deduction from Centrelink pensions and benefits;
collection from another person who holds money on behalf of a parent; or
interception of tax refunds; and
restraining from overseas travel – see ‘Departure prohibition order’, below.
Services Australia can impose a penalty for late payments (Collection Act s 67). See ‘Late payment penalties’, below.
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A parent can apply to Services Australia to credit direct payments made to the other parent or to a third party for the benefit of the child. These are called ‘non-agency payments’ (NAP). Keep proof of payment to send to Services Australia (e.g. bank deposit stubs, receipts or a bank statement). If Services Australia is not notified, these payments may not be taken into account:
if both parents agree;
if both parents agree that the payment was meant as child support, Services Australia will credit the NAP amount towards child support (Collection Act ss 71, 71A);
if no agreement;
if both parents do not agree that the payment was meant as child support, Services Australia can only credit the amount if it falls under a special type of NAP specified in regulation 5D (known as a prescribed payment) of the Child Support (Registration and Collection) Regulations 1988 (Cth) (‘Collection Regulations’) and at the time the payment was made the payer has less than 14 per cent care of the relevant children.
Services Australia will credit specified payments at the rate of 30 per cent of the assessed child support each payment period, if the balance of child support is paid on time. See for more information on prescribed payments: https://guides.dss.gov.au/child-support-guide/7/5/2
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Get legal advice as soon as you get behind in making child support payments as time limits may apply to certain applications to reduce the debt. You are still required to pay off your child support debt after the assessment has ended or after the child has turned 18.
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A parent may not be able to pay child support at the rate assessed by Services Australia, causing a child support debt. A parent may be able to apply to pay less. (See ‘How to change child support’, above.)
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Where Services Australia has imposed late payment penalties, you may request that they waive the penalties. This is called ‘remission of penalty’ (Collection Act s 68).
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If a parent has not made satisfactory arrangements to pay a large child support debt, Services Australia may prevent them from leaving Australia by making a DPO (Collection Act s 72D).
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Either Services Australia or a parent can apply to the court for an order for payment of the child support debt where there are outstanding child support payments. The court can make an enforcement order, such as for seizure and sale of property and attachment of earnings (chapter 20 of the Family Law Rules 2004 (Cth)). See also ‘Private collection’, above.
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Parents who do not apply for child support within 13 weeks of the birth may be paid at the minimum rate of FTB Part A.
The amount of child support payments that a person receives may affect the FTB paid to that person.
Centrelink accepts that there may be reasons for a person not to apply for child support i.e. the other parent is unknown or cannot be located or the applicant parent fears violence or threats from the other parent.
You usually cannot claim backdated child support payments for any period in which Centrelink grants an exemption from pursuing the other parent for child support. Discuss these matters with a Centrelink officer.
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Financial abuse or economic abuse is recognised as a form of family violence in the Family Violence Protection Act 2008 (Vic). Financial abuse may be perpetuated through the child support system by avoiding paying child support, and by misusing child support procedures and legal processes. For more information about family violence, see Chapter 4.4: Family violence.
Child support
Chapter: 4.2: Parental responsibilities and child support
Contributor: Kamalini Jayasena, Deputy Managing Lawyer, Child Support Legal Service, Victoria Legal Aid, and Simon MacDonald, Professional Support Lawyer, Victoria Legal Aid
Current as of: 1 September 2024
Law Handbook Page: 234
Next Section: More Information and Contacts