Expert Child Support Lawyers: Get the Help You Need

Part 5 of the Child Support (Assessment) Act 1989 provides the method for calculating child support. The calculation takes into account the incomes of both parents, the expenses associated with raising children of different ages, and the level of care provided by each parent.

In some cases, you may request a child support departure order from the Court if the formula does not accurately reflect the children’s needs, or a parent’s income does not accurately reflect their actual earnings. The Lyons Law Family Law team can offer guidance on all matters related to child support based on your specific circumstances.

To determine child support, there are two primary methods available initially:

• Child Support Assessment by Services Australia, which calculates the amount owed based on various factors.
• Negotiating and agreeing to a Child Support Agreement, which can be either limited or binding and requires mutual consent from both parents.

In specific situations, however, it may be possible to seek a court order for child support instead. These orders could include a Departure Order, Court-Ordered Child Maintenance, or Court Orders for Adult Child Maintenance.

Parents who experience the breakdown of their marriage or relationship often prefer to make a confidential arrangement for the financial support of their children. The Child Support (Assessment) Act 1989 provides for two types of child support agreements: binding and limited.

A binding child support agreement must meet several conditions to be considered legally enforceable. These conditions include obtaining independent legal advice for both parties regarding the advantages and disadvantages of the agreement, and the impact on their rights. The lawyers involved must provide a certificate of advice, and the agreement can only be terminated by a new binding agreement (which also requires independent legal advice), by court order, or by ending the agreement.

The agreement can be for any amount, including less than the assessed amount, and does not require an existing child support assessment. Once executed, a copy of the agreement must be provided to each party, and it may be registered with Services Australia within 28 days.

Limited child support agreements have fewer requirements than binding agreements. They can be terminated after three years by either party or earlier in the case of a significant change in financial circumstances. To be valid, the limited agreement must already have an existing child support assessment, the annual amount payable must be equal to or greater than the assessed annual amount, and the agreement must be in writing and signed by both parties.

The parties must also agree on whether the agreement can be terminated after three years or can be continued. Independent legal advice is not required for limited agreements.

In addition, parents or guardians who owe child support can make payments directly or indirectly to the receiving party through several methods, including:

• Periodic payments, which are made directly to the receiving parent or guardian on a regular basis. These payments can be adjusted to reflect changes in living expenses or care arrangements. Services Australia may assess these payments, or they may be specified in a Limited or Binding Child Support Agreement.
• Non-periodic payments, which are made indirectly to third parties for specific expenses like school fees or extracurricular activities. These payments must be outlined in a Limited or Binding Child Support Agreement.
• Lump sum payments, which can be credited against the total amount of child support owed. The value of the lump sum payment must meet or exceed the assessed amount by Services Australia unless specified in a Limited or Binding Child Support Agreement.
• Non-agency payments, which can be made directly or indirectly to the receiving party or a third party for goods or services. These payments are not enforceable but can be credited up to 30% of the administrative assessment by Services Australia without agreement or up to 100% with agreement from both parents.

Child support payments received by the recipient parent are not considered taxable income, and therefore, are not taxable. However, if the paying parent deducts child support payments from their taxable income, they may be able to claim a tax deduction for those payments.

Child support payments generally continue until the child turns 18 years old, or until they finish their secondary education, whichever comes later. However, there are exceptions to this rule. For example, if the child is over 18 years old and still attending tertiary education, child support payments may continue until they finish their degree.

The child support calculator is a tool used by the Department of Human Services to estimate the amount of child support payable by the non-custodial parent. The calculator takes into account various factors such as the number of children, the income of both parents, and the number of nights the children spend with each parent. It’s important to note that the calculator is only an estimate, and the Department of Human Services has the final say on the amount of child support payable.

If you need to contact the Department of Human Service in Sydney regarding child support, you can call their national hotline on 131 272. Alternatively, you can visit the Department of Human Services website.

Our Lyons Law family lawyers are dedicated to providing fixed-fee divorce services in Sydney and will customise our services to suit the unique circumstances of each client. Contact us today.