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.M.40 Multi-case cap

Definition

The multi-case cap is calculated on a per child basis and ensures a paying parent (1.1.P.10) with multiple child support cases (1.1.C.80) does not pay more child support (1.1.C.60) for a child than they would if all the children lived in the same household. The cap recognises that the parent may be bearing some of the costs of a child directly through regular or shared care (1.1.R.50) (1.1.S.40) and is adjusted accordingly.

The multi-case cap for each child is the multi-case child costs (1.1.M.50) for the child, multiplied by the costs that the parent does not meet directly through care (1.1.C.10). The methodology to calculate the multi-case cap is below.

  • multi-case child costs x (100% − cost percentage) (1.1.C.200)

Example: Amari has 3 children and 2 child support cases. In case 1, child support needs to be assessed for Soraya aged 15, and Estelle aged 12. In case 2, child support needs to be assessed for Leigh aged 6. Amari has ATI (1.1.A.20) of $80,000. The multi case child costs for Amari are $5,468 for Soraya and $4,609 each for Estelle and Leigh.

StepAmari’s multi-case cap
Case 1 – multi-case cap
  • Soraya = Amari’s cost percentage is 0% multi-case cap
    = $5,468 x (100%-0%)
    = $5,468
  • Estelle = Amari’s cost percentage is 0% multi-case cap
    = $4,609 x (100%-0%)
    = $4,609
Case 2 – multi-case cap
  • Leigh = Amari’s cost percentage is 0% multi-case cap
    = $4,609 x (100%-0%) 
    = $4,609

Act reference: CSA Act section 5(1)-‘multi-case cap’, section 55E Working out the multi-case cap

Policy reference: CS Guide 2.4.9 Formulas when a parent has multiple child support cases (Formulas 3 & 4), 1.1.P.40 Payer, 1.1.C.80 Child support case, 1.1.C.60 Child support

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