Child support can be a complex and sensitive topic for separated parents, especially considering payments continue until a child turns 18 or finishes high school (whichever is later).
Let’s break down the key aspects to help you understand it better.
What is Child Support?
Child support is a financial contribution from one parent to the other (or carer) for the child’s benefit. It’s separate from care/custody arrangements and property settlements, though care arrangements can influence the amount paid/received. Parents can also choose to incorporate child support negotiations into their property settlement discussions.
In Australia, Services Australia (formerly known as Department of Human Services – Child Support Agency) calculates child support through a Child Support Assessment. It’s important to note that Centrelink’s Family Tax Benefits can be impacted by child support arrangements.
How is it Calculated?
A formula applied by Services Australia determines the child support amount. This formula considers factors such as:
- Number and ages of children
- Each parent’s overnight care arrangements for the children
- Taxable income of each parent
- The presence of other dependents (excluding stepchildren)
The assessment is updated when circumstances change, such as income variations reflected in tax returns or adjustments to care arrangements. Parents must keep Services Australia informed of significant changes to ensure accurate assessments. An online calculator is available on their website to estimate child support amounts.
What Does it Cover?
Child support is intended to help cover the cost of raising a child. Unless agreed upon by the parents, the receiving parent decides how the funds are used. There can be concerns about spending, but generally, the paying parent has no control over how the money is allocated. Remember, raising a child involves various expenses beyond just school fees and medical bills. It includes living expenses, utilities, and car costs. It’s important to remember that the paying parent also contributes to these expenses during their care periods.
What if I’m Unhappy?
If you’re dissatisfied with your current arrangements, an experienced family lawyer can help explore options. This might involve a private child support agreement, a formal Binding Child Support Agreement, or even working with Services Australia to ensure a more accurate assessment.
At Clarity Lawyers Newcastle, we are committed to helping you navigate the complexities of family law with confidence and peace of mind. Contact us today to schedule a consultation and learn how we can assist you in resolving your family law matters.
