What Does Child Support Cover? Types of Its Agreements

The separation between a couple is an event of extreme stress, but the separation of a couple as parents is even more tragic. It may not only impact the couple but also their relationship with their children. Parents must feel responsible towards their kids to provide them with an excellent financial or emotional life.

“I don’t think it matters how many parents you’ve got as long as those who are around make their presence a good one.”

– Elizabeth Wurtzel, author of Prozac Nation –

One major factor to consider in the separation of parents is child support. From 2022 to 2023, the government of Australia transferred $4.015 billion from separated parents to aid almost 1.1 million children. The child support case graph has sped over the past few years. Therefore, it is essential to understand the legalities of child support. Let’s first understand what does child support mean?

Child support in Australia refers to the funds that a parent pays to the other parent to cover the costs of a child brought up after the separation or divorce of a couple. In most cases, non-custodial parents pay parents with custody of the children. The Child Support Agency calculates the amount of child support through a formula set by law. In this blog, I will guide you about all the legal aspects concerning child support.

What does Child Support Cover in Australia?

It is essential to understand child support rules before starting the legal proceedings. You must know that no set rules define the usage of child support payments in Australia.

The payment granted for child support is meant to be spent on food, housing, clothing, medical costs, and other activities that require money.

The Department of Human Services primarily assesses child support cases. When a case is forwarded to DHS, they send a letter that is a report of assessment of the case and determines the amount that the non-custodial parent has to give to the child’s primary caregiver. Upon receiving the decided amount, the primary caregiver is responsible for spending the money on the needs of the children as required.

However, any extra payments received by the paying parent within the designated time range may be credited against the total amount payable by the DHS. These payments are “prescribed” or “non-agency” payments. Child support is provided to the child until they reach the age of 18 years.

What are Types of Child Support Agreement?

There are two types of agreements offered to parents for child support cases.

1. Binding Child Support Agreements

2. Limited Child Support Agreements

These agreements define the responsibilities of both parents toward their kids and state the legal conditions that must be followed.

1. Binding Child Support Agreements

The binding child support agreement concerns the child support payment and other related conditions. Both parents seek advice from different legal advisors to make a mutual decision. Features of binding child support agreements include:

• A binding child support agreement lasts for the duration of time until there is child support liability for the relevant child.
• The amount that will be paid for the child support must be mentioned in the agreement, even if the amount is less than the required payable amount. Both parents must agree on the decided amount to proceed with the agreement.
• According to Section 80D, there are specific situations in which it can be ended, such as:
  
  • When a terminating event occurs as specified by the Child Support Assessment Act 1989.
  • When the parents agree and a termination agreement is signed.
  • When a court order is issued (refer to Section 136 of the Child Support (Assessment) Act 1989).

• Both parties must read and sign the agreement and fulfil other additional requirements mentioned in the Child Support Act of 1989.
• The legal advisors of both parties must sign a declaration stating that legal counselling is given to the parents. Parents must seek different legal advisors.
• Registering the agreement with the Child Support Agency is optional if you choose not to.

2. Limited Child Support Agreements

It is a formal agreement between the primary caregiver and non-custodial parent that doesn’t require separate legal advice or advisors. The main features of the Limited Child Support Agreement are as follows:

• Child support assessments calculate the amount of money a parent has to pay the other parent to fulfil the child’s financial requirements. Limited Child Support Agreements require a pre-existing Child Support Assessment to be in place.
• The payable amount for child support is decided upon in mutual agreement between both parents. The amount under the Limited Child Support Agreement must be greater than or equal to that paid under the Child Support Assessment.
• If the Limited Child Support Agreement has been in place for three years, it can be ended without both parties agreeing by providing notice. 
• Unlike Binding Child Support Agreements, parents can get legal advice from the same legal advisor in case of Limited Child Support Agreements.
• It is important to note that a Limited Child Support Agreement will only be considered valid once a child support agency registers it in Australia.
• If the notional assessment changes by 15% or more, either party may end a limited child support agreement with 60 days’ notice. Changes in either party’s taxable income, changes in the children’s ages, and changes in the care arrangements are all factors that impact national assessments.

Understanding the complexities of child support agreements might be difficult for you. You should seek out legal advice. Family lawyers at Aussie Legal Partners have extensive knowledge about handling cases of child support. You can also avail yourself of the opportunity to have a free initial consultation with our child custody lawyers to discuss the possibilities for the best future for your child.

10 Grounds to Review Child Assessment

Child assessment can be reviewed based on ten grounds, and if any of the reasons are established, the registrar can change the child assessment if it is just and equitable. The following are ten reasons:

Reason 1: The cost of maintaining a child is significantly impacted by the high expenses of enabling a parent to spend time with or communicate with the child.

Reason 2: The expenses of maintaining a child are crucially impacted by the costs related to the child’s particular requirements.

Reason 3: The cost of maintaining a child is significantly influenced by the high costs of caring for, training, or educating the child, as both guardians envisioned.

Reason 4: The child support assessment may be unfair because of the child’s earning capacity, property, or income.

Reason 5: The child support assessment might be unfair because the non-custodial parent has paid or transferred money, property, or goods to the child, the primary caregiver, or a third party for the child’s benefit.

Reason 6: The high childcare costs significantly impact the cost of maintaining a child, especially when the child is under 12.

Reason 7: The parent’s mandatory expenses mainly influence their capacity to support the child.

Reason 8: The child support assessment can be unfair because of one or both parents’ earning capacity, property, income, or financial resources.

Reason 9: The guardian’s capacity to support the child is influenced by their duty to maintain another child or person. 

Reason 10: The parent’s responsibility to maintain a resident child significantly lessens their capacity to help the child support the child.

Closing Insight

To sum it up, child support in Australia is a way to make sure that the child is getting what they need. The rule stated by the Government of Australia makes it fair for both parents to support the child based on what they earn and how much time they spend with their kids. The child support agencies are responsible for ensuring that the parents are doing their duties responsibly and the child is getting his rights properly. It’s about giving children a stable and secure life, no matter what.

I have covered almost all the significant aspects of child support in this blog. You must be aware of the essential legalities of child support by now. That is positive, primarily if you are proceeding with the child support case. Even if you are aware of the legal facts of child support, hiring a professional lawyer to lead you through the process of child support is still recommended. Aussie Legal Partners are renowned for their expert family lawyers with hands-on experience in child support cases. Book your free initial consultation today to get the best legal advice.

FAQs

Do fathers have to pay child support in Australia?

In Australia, as per the rule, both parents are responsible for paying the child support. Although the amount of child support is calculated depending on factors like income, property, and capacity to support the child.

Do you have to pay child support if you are unemployed?

Yes, it is important to pay child support even if you are unemployed. If you’re unable to pay child support because of any circumstances, you must discuss your problem with the child support agency, as the accumulation of unpaid funds will land you in legal trouble.

Who qualifies for child support legally in Australia?

You may be qualified to receive child support if you are a legal guardian, grandparent, or other relative of a child. If you provide care for the child for at least 128 nights a year and you are not in a relationship with the child’s parents, you are eligible to file for a child support assessment.