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.

1.2.3 Types of child support arrangements

Administrative assessment (including Change of Assessment)

Administrative assessments

In Australia, most child support assessments are calculated according to an administrative formula (child support formula) (2.4). The child support formula determines how the costs of each child in a child support assessment are to be shared by each parent (either by care and/or the payment of child support).

The child support formula identifies the costs of the children based on the parents’ combined child support income as well as the number and age of the children in the assessment. The child support formula is based on extensive research into how much parents spend on children, which found that expenditure on children is different in households with different income levels, numbers of children and children of different ages.

Change of Assessment & orders varying assessments

If parents believe that a formula-based assessment does not reflect the special circumstances of their case, they may apply to Services Australia for a change of assessment (2.6). The change of assessment process allows Services Australia to examine the broader financial circumstances of both parents and make a decision to depart from the formula assessment.

In some circumstances a parent may apply to a court for departure from the formula assessment. A parent who has an assessment may also apply to a court for other orders, including for an order for child support to be provided in a form other than periodic amounts or for an order for a lump sum amount.

Policy reference: CS Guide 2.4 Formula assessment, 2.6 Change of assessment in special circumstances, 4.3.2 Applications & orders about decisions under the CSA Act

Child support agreements (binding or limited)

Parents may choose to negotiate their own child support arrangements through a child support agreement (2.7.1). A child support agreement is a written agreement between parents (and/or a non-parent carer) on the amount of child support to be paid, and how it will be paid.

Agreements can specify the amount, frequency and method of payments but must meet the requirements of the legislation in order to be accepted by Services Australia.

Act reference: CSA Act Part 6—Consent arrangements

Policy reference: CS Guide 2.7 Agreements

Maintenance under family law

A person can only apply for a court order for child maintenance under Australian family law if they are not eligible to apply for a child support assessment for that child under the CSA Act.

A financial agreement under the FL Act can also be a binding child support agreement for child support purposes if it complies with the necessary requirements in the CSA Act ('Child support agreements’).

Act reference: FL Act Part VII Division 7—Child maintenance orders, Part VIIIA—Financial agreements

Self-managed

Parents are able to make private arrangements for the financial support of their children, and are not required to formalise a financial arrangement through the child support scheme or family law.

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