What you need to know about Child Support
If you’ve recently separated from your partner, and you have children together, it’s likely you will need to work out a child support arrangement. But what type of child support arrangements are there, who pays, and how much? Here’s a handy guide to the basics of child support.
Firstly, the type of child support arrangement you enter will depend mainly on your financial circumstances, but also on how well both of you are able to get along – it’s vital for your children that you’re able to at least be civil to each other.
What is a Child Support Assessment?
A Child Support Assessment is the most common type of child support arrangement and involves DHS (Child Support Agency) assessing the contributions to be made by both parents according to a set formula. The formula considers both people’s income and the amount of time each parent cares for the child and then calculates the amount each party owes to each other. DHS will then collect and distribute payments to the parties. Assessments are automatically reviewed and assessed by DHS after a set period, not usually more than 15 months.
If parties can mutually agree, they can use the online calculator to get the assessment and make payments privately. But legal advice should be sought first.
Who is liable for child support?
Both biological and adoptive parents of a child may have to pay child support. If you are seeking a child support assessment through DHS, you will need to prove that the other party is the parent of your child. If you’re unable to do this, or there is some dispute about paternity, DNA testing may be required.
Who can receive child support?
Any parent who cares for their child at least 35 per cent of the time may apply for a child support assessment. The amount you receive will depend on the formula. As a parent, you are not eligible to apply for child support if you continue to live with the other parent of your child.
Any person (a non-parent carer) who has the care of a child can claim payment from one or both parents of a child, if they care for the child for a minimum 35 per cent of the time and are the legal guardian of the child.
What is a child support agreement?
This is where both parties can agree on how much child support is to be paid and sign a written agreement to that effect. The agreement is then registered with the Department of Human Services (child support) DHS – also known as the Child Support Agency (CSA), who can collect and distribute the payments.
There are two types of child support agreement:
- Binding agreement – this type of agreement allows you to determine the amount of support to be paid without an assessment from DHS first. Payments may be less than the amount DHS would have assessed and can be paid directly from one party to another. The payments are also permitted to be paid as a lump sum. You must obtain independent legal advice before signing a binding agreement.
- Limited agreement – this type of agreement requires you to have your child support contributions assessed by DHS first. The payment amount must not be less than the amount assessed but can be more. You are not required to obtain legal advice, and the agreement can be ended if either party wishes to do so at the end of three years.
What if the other parent fails to make payment?
If the paying parent fails to make child support payments as per the agreement, or DHS assessment, the Child Support Registrar has the power to obtain the payments by:
- Compelling the payer’s employer to make payment directly to DHS
- Recovering the payments from social security benefits and Family Tax Benefits
- Intercepting the payer’s tax refund
Both the registrar and the person owed the payments are entitled to apply for a court order to enforce the debt.
If you need advice about child support, custody arrangements, or any other aspect of family law, the experts at Michael Lynch Family Lawyers are here to help you. Contact our office on: (07) 3221 4300 or email: [email protected]
