Every parent has a duty to maintain their children financially. Child support can
be assessed and collected by the Child Support Agency (CSA).
Usually the parent with whom the child lives applies to the Child Support Agency
for an assessment of the amount of child support payable by the other parent. The
Child Support Agency makes as assessment of child support by applying a formula
to both parents’ gross annual income, considering the age of the child and the costs
of caring for the child; the amount of time the child spends with each parent and
whether the payer has an obligation to maintain a child from another relationship.
The child support website can be found at www.csa.gov.au. On the website parents
can use the child support calculator to estimate the amount of child support they
ought to pay or receive. The website also provides a calculator for parents to estimate
any Family Assistance Office payments they might receive.
Departing from Child Support Assessments
It is possible for either party to apply to “depart from the child support assessment
in special circumstances”. For example, the parent liable to pay child support may
have substantial or unusual expenses in spending time with the child because they
live a considerable distance away from the other parent. In such a case, an application
to change the child support assessment can be made to take these costs into account.
Another example is where the parent liable to pay child support has the ability
to arrange their affairs so that their income remains below the minimum self support
threshold but they have substantial assets or access to funds which they are not
obliged under tax laws to declare as income. Here the child support assessment can
be departed from to ensure that the child’s support is more fairly shared between
both parents.
Once an assessment has been made, payments can be made to the Child Support Agency
and then forwarded to the other parent on a monthly basis or paid directly to the
parent. Inevitably there is some delay between the time of the application being
made and the date of the first payment.
Except in limited circumstances, parents are not obliged to use the Child Support
Agency and are perfectly entitled to reach their own arrangements regarding child
support.
Child Support Agreements
If the parents agree, a Child Support Agreement can be entered into on a private
basis. This agreement can be registered with the Child Support Agency or the parties
can elect to comply with the agreement privately. Once registered, the Child Support
Agency can collect money due under the Agreement. If there is an existing Child
Support Assessment by Child Support Agency, a later Child Support Agreement will
replace that assessment.
People entering into a Child Support Agreement often include provision for regular
review of the Agreement, although that is not compulsory.
As and from 1 July 2008, there are two types of Child Support Agreements that can
be entered into:
1. Limited Child Support Agreements; and
2. Binding Child Support Agreements.
Limited Child Support Agreements operate for 3 years. A Limited Child Support Agreement
requires a Child Support Assessment to be in place. After three years, the parties
can renegotiate another agreement if they wish.
A Binding Child Support Agreement is an opting out of the Child Support Act and
can only be altered by another agreement, terminating the agreement, or by being
set aside by the Court in circumstances where there has been an event such as fraud,
duress or lack of disclosure. Binding Child Support Agreements can only be entered
into where both parents are legally represented and their respective lawyers sign
a certificate certifying, amongst other things, that they have given advice to their
client on the advantages and disadvantages of entering into the Agreement.
Adult Child Maintenance
A parent or child may make an application to the Court for adult child maintenance
in specific circumstances where they can show that despite the child being over
18, and maintenance is required to enable the child to complete their education,
or because of a mental or physical disability.
The maintenance paid by the parents will depend on the child’s necessary expenses
and the financial situation of each parent as well as the child.
The Court will take into account the income, the earning capacity, the property
and financial resources of each parent together with their necessary commitments.
A child’s necessary expenses include things such as food/household supplies, utility
expenses, transport and accommodation costs and expenses associated with education.
Any special expenses that a child may have such as medical expenses will usually
be considered as necessary. The Court will determine an appropriate amount to be
provided for clothing, hairdressing, vehicle and telephone expenses. Entertainment
and social expenses may be excluded.
It will be necessary for the child to show that they are attempting to contribute
to their own support, taking into account their course commitment and skills and
the availability of part time work.
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