What is Child Support/Child Maintenance?

How is child support calculated?

Child support in Australia is calculated using a formula that considers both parents’ incomes, the number of children, and the time each parent spends with the children. Child support payments are deducted from your wages by Centrelink.

Can we create our own parenting agreement?

Yes, parents are encouraged to reach an amicable agreement on parenting arrangements and can create a parenting plan themselves or with a family lawyer. Once you have a formal Parenting Plan you can obtain Consent Orders to ensure the agreement is legally binding and enforceable.

How much does a single mother get for child support?

The amount paid to a parent for child support is not fixed; but is tailored to your circumstances.  Child Support is either agreed upon by the parties, as per a private agreement; or is determined by a Child Support Assessment by the Child Support Agency (CSA).

When the CSA makes their assessment, they consider:

• The number of children the payer and payee both have;
• How old the children are;
• The taxable income of each of the parents; and
• The amount of time each parent cares for the children.

If you have sole custody of the child/ren, this will be considered by the CSA in their assessment, as you have a significantly greater portion of care than the other parent.

How does child support work with 50/50 custody?

50/50 custody arrangements do not necessarily diminish parental obligations to pay child support.  While child support is partially determined by the amount of care each parent has of the child/ren, as a parent is considered to bear the cost of living while in care of the child, one parent may still be liable for child support payments.

If there is an earning disparity between the parents, the higher earning parent may have to contribute child support payments to ensure a consistent standard of living of the child/ren.

Earning disparities will be considered by the Child Support Agency (CSA) when making Child Support Assessments that establish child support obligations.

Further, if the parties make a private Binding Agreement, a parent with a minimum of 35% custody may be entitled to child support payments if both parties agree.

Every custody, and child support arrangement is different, there is no cookie cutter answer.  For advice streamlined to your family’s needs, speak to our experienced family law team today.

Is inheritance considered income for child support?

Inheritance has no direct impact upon child support obligations, as child support is assessed by taxable income – and inheritance is untaxed in Australia.

However, child support obligations may be impacted if:

• An inherited asset is sold, capital gains tax may apply, increasing taxable income
• Income tax applies to any dividends or rental income from shares or property that was inherited, increasing taxable income.

Can child support take my tax return?

If your child support payments are overdue and you have child support debt, Services Australia can intercept tax refunds to pay child support to the payee; and any penalties incurred for late payment, paid to the Australian Government.

However, if you are up to date with your child support payments, your tax return is not considered taxable income and will not be considered in the amount of child support you are obligated to pay.

Can child support take my superannuation?

No, child support obligations do not impact your superannuation.

Even if you have failed to make child support payments, Services Australia is unable to access your superannuation fund to retrieve unpaid money.

Can child support be backdated in Australia?

The Child Support period begins on the date the application for a Child Support Assessment was first received by the Department of Human Services.  Accordingly, child support payments may only be backdated to the date that the application was received.

Changes to child support may cause backdated changes to the amount received by the payee.  A payee may be required to repay a child support overpayment if the child support is reassessed.  Likewise, a payor may be liable to pay an underpayment if an assessment is revised and child support is raised.

These amendments to a child support assessment may also have ramifications on your Family Tax Benefit.  Please see https://www.servicesaustralia.gov.au/what-happens-if-we-update-your-child-support-assessment-while-you-get-ftb-part?context=22151 for more information.

Alternatively, you may contact our family lawyers who are able to provide tailored advice to your circumstances.

How does a new partner affect child support?

The income of a new partner of either the payor or payee is not relevant to child support.  Child support strictly considers the financial position of the parents of the child/ren and the income of non-parent carers is not considered.

Is child support means tested?

Child support is determined by reviewing several factors, including taxable income.  The following factors are also taken into consideration:

• the number of children the payer and payee both have;
• how old the children are;
• the amount of time each parent cares for the children

However, there are exceptional circumstances in which either parent may apply to deviate from the typical assessment criteria (as above).  One reason for doing so is the inequitable level of either parent’s income, property and financial resources.

Under this circumstance, the child Support Agency may consider a parent’s financial position beyond their taxable income.

Is child support tax deductible?

No, child support is not a tax-deductible expense for the payor.

However, child support payments (to the payee) are generally not considered to be taxable income.

Does my boyfriend have to pay child support?

Marital status has no impact on parental responsibilities.  Child support obligations do not depend on the relationship of the parents, but rather, the relationship of the parent and child.  Therefore, if your ex-partner is the parent of your child, they are liable to financially support their children.