The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.C.200 Cost percentage

Definition

The cost percentage is used by the child support formula (1.1.C.110) to determine how much of the costs of a child, a parent (1.1.P.10) or non-parent carer is meeting through care.

A cost percentage is calculated for each child in an assessment (because the care arrangement for each child must be recognised). The cost percentage is used to calculate the child support percentage (1.1.C.140).

The cost percentage is determined according to the person's percentage of care (1.1.P.70) for a child, using the cost percentage table.

Percentage of careCost percentage
0 to less than 14%Nil
14% to less than 35%24%
35% to less than 48%25% plus 2% for each percentage point over 35%
48% to 52%50%
More than 52% to 65%51% plus 2% for each percentage point over 53%
More than 65% to 86%76%
More than 86% to 100%100%

Example:

  • A percentage of care of 11% equates to a cost percentage of 0%.
  • A percentage of care of 19% equates to a cost percentage of 24%.
  • A percentage of care of 40% equates to a cost percentage of 35%.
  • A percentage of care of 50% equates to a cost percentage of 50%.
  • A percentage of care of 60% equates to a cost percentage of 65%.
  • A percentage of care of 81% equates to a cost percentage of 76%.
  • A percentage of care of 88% equates to a cost percentage of 100%.

Act reference: CSA Act section 5(1)-'cost percentage', section 55C Working out cost percentages

Policy reference: CS Guide 2.4.7 Formula 1 - the basic formula - a single case assessment, 1.1.E.10 Eligible carer, 1.1.C.210 Costs of the child

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