Child Support Advice & Agreements Melbourne
Following separation, one of the most crucial considerations for parents is ensuring the ongoing financial support and well-being of their children. At Kelly & McHale Family Lawyers, we provide clear, practical advice to help you understand your child support rights and obligations, whether you are a parent receiving or paying child support.
What is Child Support?
Child support is the financial contribution made by one or both parents towards the cost of raising their children after a separation. The primary aim of the child support scheme in Australia is to ensure that children receive a proper level of financial support from both parents, according to their respective capacities to provide.
How is Child Support Determined? The Role of Services Australia (Child Support)
In most cases, child support is administered by Services Australia (Child Support). Parents can apply to Services Australia for an administrative assessment of child support. This assessment is calculated using a legislative formula that takes into account several key factors:
- Each parent’s taxable income: Generally, the higher a parent’s income, the more child support they may be assessed to pay.
- The level of care each parent provides: The amount of time each parent spends caring for the children significantly influences the assessment.
- The number and ages of the children: The costs of raising children are recognised as varying with their age and the number of children in a family.
- The parents’ necessary living expenses: The formula includes a self-support amount for each parent.
Services Australia will issue a Child Support Assessment notice outlining the amount payable. This assessment can be collected privately between parents or Services Australia can collect and transfer payments.
Beyond the Formula: Child Support Agreements
While many families rely on the standard administrative assessment, parents also have the option to reach their own agreement regarding child support. This can offer greater flexibility, certainty, and can be tailored to your family’s specific circumstances, such as school fees, health insurance, or extracurricular activities.
There are two main types of Child Support Agreements:
- Limited Child Support Agreements:
These agreements allow parents to agree on an amount of child support that is equal to or greater than the amount that would otherwise be payable under an administrative assessment.
They do not require independent legal advice before being signed (though it is always recommended).
They can be ended by either parent after three years, or if the administratively assessed amount changes by more than 15% in circumstances not contemplated by the agreement.
- Binding Child Support Agreements:
These agreements offer a higher degree of certainty and can provide for amounts that are higher or lower than an administrative assessment.
Crucially, for a BSA to be binding, both parents must have received independent legal advice before signing the agreement and must have a certificate from their lawyer annexed to the agreement.
BSAs can only be ended by a new BSA or by a Court order in very limited circumstances (such as fraud or a significant change in circumstances making the agreement unjust).
All child support agreements should be registered with Services Australia (Child Support) to ensure they are enforceable and to manage any associated Family Tax Benefit implications.
Changing a Child Support Assessment or Agreement
- Administrative Assessments: If your circumstances change significantly (e.g., a change in income, care arrangements, or new dependent children), you should notify Services Australia, as this may lead to a new assessment. You can also apply to Services Australia for a “Change of Assessment in Special Circumstances” if the formula results in an unfair outcome due to specific situations not fully accounted for by the standard assessment. There are 10 specific reasons a change of assessment can be sought.
- Child Support Agreements:
- Limited Agreements: As mentioned, these have specific conditions under which they can be ended or varied.
- Binding Agreements: These are very difficult to change. Variation usually requires a new Binding Child Support Agreement or, in rare cases, a Court order.
When the Court Can Make Child Support Orders
The Court generally only becomes involved in child support matters in limited situations, such as:
Appeals against decisions made by Services Australia (after all internal review processes have been exhausted).
Applications to set aside a Child Support Agreement.
Applications for adult child maintenance (for children over 18 in specific circumstances, such as completing education or if they have a disability).
Applications for non-periodic child support, such as lump-sum payments for specific expenses like school fees or medical costs, often as part of broader property settlement orders.
Kelly & McHale Family Lawyers: Your Child Support Advisors
Navigating the complexities of child support can be challenging. Our experienced team can assist you by:
Advising on your likely child support obligations or entitlements based on an administrative assessment.
Explaining the implications of different care arrangements on child support.
Negotiating and drafting comprehensive Limited or Binding Child Support Agreements tailored to your family’s needs.
Providing the necessary independent legal advice for Binding Child Support Agreements.
Assisting with applications to Services Australia for a Change of Assessment in Special Circumstances.
Representing you in Court for child support matters where appropriate.
Advising on the relationship between child support, spousal maintenance, and property settlement.
We are committed to ensuring that arrangements for your children are fair, sustainable, and prioritise their well-being.
Frequently Asked Questions (FAQs) about Child Support
Here are some common questions parents ask about child support in Australia
What if the other parent isn’t paying the assessed child support?
If Services Australia is collecting your child support, they have various enforcement methods they can use, such as garnisheeing wages, intercepting tax refunds, or preventing overseas travel. If you have a private collection arrangement and payments are missed, you can ask Services Australia to start collecting on your behalf.
To help us advise you: Is your current child support arrangement a private collect or collected through Services Australia? Are there arrears owing?
Can child support cover private school fees or other special expenses?
The standard child support assessment is intended to cover general day-to-day living expenses for children. It may not specifically cover large expenses like private school fees, extensive extracurricular activities, or specialist medical treatment. These types of expenses are often best dealt with through a Child Support Agreement, where parents can agree on how these “non-periodic” costs will be shared. If an agreement cannot be reached, a “Change of Assessment in Special Circumstances” application can be made to Services Australia if these costs meet certain criteria.
To help us advise you: Are there significant additional expenses for your children, such as private school fees or ongoing medical costs, that you need to consider?
How long does child support have to be paid?
Generally, child support is payable until a child turns 18. It may cease earlier if the child marries or enters into a de facto relationship. In some circumstances, child support can be extended beyond 18 if the child is still completing secondary education or has a disability requiring ongoing financial support (this is known as adult child maintenance and usually requires a court order or specific agreement).
To help us advise you: What are the ages of your children? Are any approaching 18 and still in secondary education?
What if my income changes significantly?
You should notify Services Australia (Child Support) as soon as possible if your income changes significantly (usually by more than 15%). They can then update your details and potentially issue a new assessment. Failure to report significant income changes can result in underpayments or overpayments that may need to be rectified later.
To help us advise you: Has your income or the other parent’s income changed recently, or do you anticipate a significant change?
Can I refuse to let the other parent see the children if they don’t pay child support?
No. Parenting arrangements (time spent with children) and child support are separate legal issues. A parent’s obligation to pay child support is not dependent on them spending time with the children, and withholding contact because child support isn’t paid is generally not permissible and can be detrimental to the children. Conversely, a parent cannot stop paying child support because they are not seeing the children.
To help us advise you: Are there any current parenting orders or agreements in place?
What is a “Change of Assessment in Special Circumstances”?
If you believe the standard child support formula produces an unjust or inequitable result due to specific, uncommon circumstances, you can apply to Services Australia for a “Change of Assessment”. There are 10 recognised “special circumstances”, such as high costs of enabling a parent to spend time with a child (e.g., travel costs), or a child having special needs that increase their costs.
To help us advise you: Do you believe there are special circumstances in your situation that make the current child support assessment unfair?
Securing Your Children’s Future
Understanding your child support obligations and entitlements is vital for your children’s financial security. Contact Kelly & McHale Family Lawyers today for your free first consultation. We provide expert advice and support to help you navigate these important matters.