Child Support
Child support can be confusing for all involved, whether you’re a parent who doesn’t see your children much but pays child support, a parent with full time care of children or a non-parent carer.
Child support can be complex, and it is ok if you don’t understand why or how child support maintenance is calculated or why it may change over time.
What is child support in Australia?
Child support is governed by Services Australia (formerly known as the Department of Human Services, but commonly referred to as the Department or the Child Support Agency).
The child support scheme ensures that children of a marriage or de facto relationship (unless in Western Australia) are financially supported by their parents when parents are going through a separation or divorce.
Child support is for the financial benefit of the children of the marriage or de facto relationship, not for the benefit of either of the parents.
Each parent (whether a father, mother or non-parent carer) has a duty to maintain their child in the form of child support payments. This is set out in the Child Support (Assessment) Act 1989.
Services Australia is responsible for administering the child support legislation, not the Family Court of Australia or the Federal Circuit Court of Australia. The Court only has the power to make orders in certain circumstances, such as a Departure Order, a Child Maintenance Order or an Adult Child Maintenance Order (since Services Australia does not deal with these issues).
Agreements about child support can be made when deciding other family law matters, such as parenting matters, property settlement matters, or spousal maintenance matters.
Who is required to pay child support?
Any parent, whether biological or adoptive, is liable to pay child support.
If there is an issue about the paternity of the child, then a DNA test may be required to prove that the other party is the biological parent of the child you are seeking child support maintenance for.
Who can receive child support?
Any parent, guardian or carer, who cares for the child at least 35% of the time over a 12-month period can receive child support.
The amount you receive may be calculated by Services Australia or can be governed by a private Child Support Agreement as agreed between the parents or non-parent carer.
How are child support payments made?
Child support payments can be made directly or indirectly to the receiving parent or guardian by way of:
- Periodic payments
Here, child support is paid directly to the receiving parent or guardian on a regular basis. These payments can be changed to reflect the costs of living or any change in care arrangements. Payments can be either assessed by Services Australia or set out in either a Limited Child Support Agreement or a Binding Child Support Agreement.
- Non-Periodic payments
Child support payments are made indirectly to third parties to go towards, for example, school fees, uniforms, or sporting and extra-curricular activities. An agreement for non-periodic payments must be specific in either a Limited Child Support Agreement or a Binding Child Support Agreement.
- Lump Sum payments
Child support paid by a lump sum payment can be credited against the total amount payable under the assessment for child support. The value of the lump sum payment must be equal to, or exceed, the amount that the receiving parent is entitled to receive as assessed by Services Australia. That is unless you enter into either a Limited Child Support Agreement or a Binding Child Support Agreement (in which case if there is an agreement you may receive a lump sum payment plus additional periodic payments – but this must be agreed by the parents).
- Non-agency payments
Child support considered as a non-agency payment can be paid directly or indirectly to the receiving parent or guardian or to a third party (such as paying a debt owed by the other parent or paying for services or goods). Non-agency payments are not enforceable but can be credited up to 30% of any administrative assessment by Services Australia without agreement (or up to 100% if agreed by both parents).
What is Spousal Maintenance?
Maintenance of a spouse or a de facto partner may be considered by the Court as part of property settlement matters, in addition to child support assessment.
However, in some circumstances Spousal Maintenance Orders may be made when there is a substantial difference between the parties’ incomes at the date of separation.
The Family Court of Australia and the Federal Circuit Court of Australia hear two types of applications for spousal maintenance:
- De facto partner maintenance
This provides financial support to a former de facto partner where one party is unable to adequately financially support themselves.
- Spouse maintenance
This provides financial support to a party of a marriage that has broken down where one party is unable to adequately financially support themselves.
Spousal maintenance is usually paid only for a limited period of time until the applicant party is in a position where they can financially support themselves. However, in exceptional circumstances Maintenance Orders may be made that require payments to be made on a permanent basis.
We are here to help and guide you through your family law matters. For help with child support spousal maintenance, contact the family lawyers at Chase Murphy Lawyers on (03) 8609 3589.
