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2.4.8 Assessment - single case with a non-parent carer (Formula 2)

Context

When somebody other than a parent is providing some care for a child and neither parent has another child support case, Formula 2 is used to calculate the amount of child support to be paid.

Act references

CSA Act section 25A, section 36, section 40A, section 40B

On this page

A person other than a parent may provide care for a child. One or both of the parents may also provide care of the child. In some circumstances, more than one non-parent carer may be providing care for a child. In calculating the amount of child support to be paid, the percentage of care provided by the non-parent carer/s is included in the calculations. A non-parent carer has no legal responsibility for the child; therefore their income is not used in the calculation of the assessment.

If one of the parents makes an application for a child support assessment when somebody other than the parents is providing care, then Formula 2 (section 36) is used to calculate the assessment. It is also used if the non-parent carer makes the application for the assessment. A non-parent carer must have at least 35% care of the child to be entitled to receive child support. Also, a non-parent carer is not entitled to receive child support unless the carer has made an application under section 25A for an assessment of the costs of the child (section 40B). See 2.1.1 for information about applications for child support.

Formula 2 calculations

The following steps explain how to work out the annual rate of child support payable if one or more non-parent carers have a percentage of care and neither parent has another child support case.

Steps 1 to 7 are the same as for the basic formula (Formula 1), with additional calculations at step 4 and step 5 where a percentage of care and a cost percentage are also worked out for the non-parent carer/s. Additional calculations may also be required at step 8.

Step 1: Work out each parent's child support income (2.4.7) (section 41).

Step 2: Work out the parents' combined child support income (2.4.7) (section 42).

Step 3: Work out each parent's income percentage (2.4.7) (section 55B).

Step 4: Work out each parent's and non-parent carer's percentage of care (2.4.5) for the child (section 49 or section 50).

Step 5: Work out each parent's and non-parent carer's cost percentage (2.4.5) for the child (section 55C).

Step 6: Work out each parent's child support percentage (2.4.5) for the child (section 55D).

Step 7: Work out the costs of the child (2.4.6) for the day under sections 55G and 55H.

Step 8: The annual rate of child support payable by the parent for the child is worked out using the formula:

Child support percentage × costs of the child

Child support may be payable by one or both of the parents, depending upon their child support percentage and care level.

When child support is payable by or to more than one person

If both parents have a positive child support percentage at step 6, then both parents pay child support to the non-parent carer/s (section 36(4)).

Example:

The first parent, Augustin, has a child support percentage of 83.47%.
The second parent, Zora, has a child support percentage of 16.53%.
The costs of the child are $1,000.

Both parents are required to pay child support to Maura who has full-time care of the child.
Augustin will pay $1,000 × 83.47% = $835.
Zora will pay $1,000 × 16.53% = $165.

If one parent, the first parent, has a positive child support percentage at step 6, and the other parent has a negative child support percentage and less than shared care, then the first parent pays child support to the non-parent carer/s (section 36(4)).

Example:

The first parent, Surya, has a child support percentage of 83.47%.
The second parent, Euclid, has regular care of the child and a child support percentage of −7.47% (16.53% − 24%).
The costs of the child are $1,000.

The first parent is required to pay child support to Sandra who has primary care of the child.
Surya will pay $1,000 × 83.47% = $835.

If one parent, the first parent, has a positive child support percentage at step 6 and the other parent has a negative child support percentage and at least shared care, then the first parent pays child support to the second parent and the non-parent carer (section 36(5)). The first parent will pay to the second parent an amount of child support calculated using the second parent's negative child support percentage as a positive. The balance of the child support amount payable by the first parent is paid to the non-parent carer.

Example:

The first parent, Randolph, has a child support percentage of 83.47%.
The second parent, Tori, has 37% care of the child (shared care), and a child support percentage of −12.47% (16.53% − 29%).
The costs of the child are $1,000.

The first parent is required to pay child support to Tori, using Tori's negative child support percentage as a positive.
Randolph will pay $1,000 × 12.47% = $125.
The first parent is required to pay Calum the balance of the child support they must pay. Calum also has shared care of the child.
Randolph will pay Calum $835 − $125 = $710.

When 2 non-parent carers are entitled to receive child support

If 2 non-parent carers are entitled to receive child support for a child, then the amount to be paid by the parent/s is shared in accordance with each carer's share of cost percentages of all people entitled to receive child support (section 40A). If only one child of the relationship is in the relevant shared care arrangement, then only the child support for that child is shared between the carers.

Example:

Adrianna and Kevin have one child Tullia.
Martin has a care percentage of 45%. Tatjana has a care percentage of 40% and Kevin has a care percentage of 15%.
Martin has a cost percentage of 45%. Tatjana has a cost percentage of 35% and Kevin has a cost percentage of 24%.
The parents both have an income percentage of 50%.
The costs of the child are $1,000.

Adrianna is required to pay $500 ($1,000 × (50% − 0%)).
Kevin is required to pay $260 ($1,000 × (50% − 24%)).
A total of $760 is payable.

The cost percentages of Martin (45%) and Tatjana (35%) total 80%.
Kevin is not entitled to receive child support as they have less than 35% care.

Martin is entitled to receive $760 × (45% ÷ 80%) = $428.
Tatjana is entitled to receive $760 × (35% ÷ 80%) = $333.

Paying the MAR for a case to more than one person

Different rules apply if the MAR of child support is payable to more than one person. See 2.4.12 for details of the rules that apply, which depend upon the level of care provided by the carers.

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