2.4.1 The formulas
The Registrar will use an administrative formula to calculate the annual rate of child support payable under an administrative assessment, unless:
- the assessment is varied by a departure order by a court (2.8.2)
- the assessment is varied by a change of assessment decision (2.6), or
- the assessment is varied by the provisions of a child support agreement (2.7.4).
CSA Act section 5, Part 5 Division 2
What are the formulas?
The annual rate of child support payable is calculated using 1 of 6 formulas (section 35B). The 6 formulas are variations of 1 basic formula. To calculate a child support assessment, the formulas utilise:
- the parents' incomes (2.4.4)
- the percentage of care of the child, and the percentage of the costs met by this level of care (2.4.5)
- the costs of the child (2.4.6).
For information about the tables and values used in the calculation of the assessments, refer to 2.4.2.
The formulas adopt an 'income shares' approach, where the costs of the children are calculated based on the parents' combined income and shared between the parents in proportion to each parent's share of their combined income. Either parent may meet some or all of their share of the costs during care.
A child support case is defined as the assessment for child support for all children who are children of both the parents of the child (section 5). If somebody other than a parent is caring for a child, then there may be 3 (or more) parties to a case.
In the majority of cases, the rate of child support will be assessed using formula 1. The formulas are:
- Formula 1 - the basic formula, for a single child support case (section 35). See 2.4.7.
- Formula 2 - for a single child support case with a non-parent carer (section 36). See 2.4.8.
- Formula 3 - if 1 or both of the parents have multiple child support cases (section 37). See 2.4.9.
- Formula 4 - if a parent has multiple child support cases and there is a non-parent carer for 1 or more children (section 38). See 2.4.9.
- Formula 5 - for a child support case with a non-parent carer, where 1 parent is not assessed because they are not a resident of Australia or there are special circumstances (section 39). See 2.4.10.
- Formula 6 - for a child support case with a non-parent carer, where 1 parent is deceased (section 40). See 2.4.10.