Child Support is a legally implemented system that ensures financial care is provided to children until the age of 18. It is a payment from one parent to the other parent in the primary caregiver role. The Child Support Agency (CSA) uses a mathematical formula to determine the expenses of each child and the realistic contribution each parent can make.
Although it is the responsibility of both parents to support their children, the share provided by each may not be the same due to several reasons.
What does the formula consider?
The formula used by the CSA uses multiple factors to determine the figure necessary to support each child. This may include:
- The number of children shared by the parents
- Other dependent children of each individual parent
- The age of the children
- The income of each parent
- The amount of money each parent needs to support themselves
- The amount of time each parent spends caring for each child
What does child support cover?
Child support covers a variety of necessary expenses required to support the happy and healthy development of the child, as assessed by the Department of Human Services (DHS). It is typically a regular lump sum payment made from one parent to the primary caregiving parent. On occasions, the payment may also be made directly to a third-party if approved by the DHS.
Prescribed expenses apply when the paying parents provides less than 14% of the total childcare and may be claimed up to 30% of the total cost. These may include:
- Childcare expenses
- Essential healthcare, including dental
- Public school fees
- Uniforms and textbooks
- Housing, which may take the form of mortgage repayments or rent
- Transportation, including public transport fees or vehicle maintenance
What about additional expenses, such as private health care or private school fees?
Two types of private agreements are allowed by the Child Support Assessment Act, known as the Binding Child Support Agreement and the Limited Child Support Agreement. Both come with strict legal terms and conditions, however they differ in timeframes and flexibility to suit a certain situation or unique need outside of the prescribed expenses. These may include:
- Private health insurance premiums
- Private school fees (for more information on paying private school fees after a divorce, read out blog here)
- Additional charges to meet any special needs or circumstances, such as specific medical costs (for example, braces)
- Extracurricular activities of the children
Does the primary caregiving parent need to be the biological parent?
No, not necessarily. The primary caregiver could be any legal carer or guardian that looks after the children for at least 35% of the year.
How is child support paid and received?
Although an arrangement may be made with the DHS to pay directly to a third-party provider, child support is typically transferred via bank transfer, or the Child Support Agency can collect the money. It is advised that cash is not used as it is not traceable.
Want a free, non-obligational consultation to get information specific to you?
Of course, every situation is unique, and no two families are the same. That’s why the expertise of Waters Lawyers will help ensure you are receiving or providing the amount of child support necessary for your set of circumstances. To arrange a free non-obligational consultation with a family lawyer, call our friendly team on (03) 5996 1600 or book an appointme
