When parents separate, ensuring children receive appropriate financial support becomes a legal responsibility that continues until the child turns 18 (or longer in some circumstances).

Child support can feel complicated, especially when emotions run high, and parents struggle to agree on fair contributions. Understanding how child support works, your options for managing payments, and your rights when assessments don’t seem fair helps you navigate this essential aspect of separation.

Whether you’re newly separated and establishing child support arrangements, considering a child support agreement, or disputing an assessment that doesn’t reflect your circumstances, Resolve Conflict provides expert guidance through family law and mediation to help you reach fair, workable solutions.

While we provide extensive information and guidance on child support matters, we always recommend consulting experienced family lawyers before making any rash or uninformed decisions about child support or any other matters related to separation and divorce.  The Resolve Conflict team is qualified in all matters related to separation, divorce, mediation, child access and agreements, and child support.

Understanding Child Support: The Basics

What Is Child Support?

Child support is the ongoing legal responsibility of separated parents to provide appropriate financial support for their children. The Child Support Scheme, administered by Services Australia (formerly the Department of Human Services – Child Support), operates under the Child Support (Assessment) Act 1989 to ensure children receive financial support until they turn 18.

Unlike property settlement, which deals with dividing assets accumulated during the relationship, child support focuses on meeting children’s ongoing day-to-day expenses after separation. It’s designed to ensure both parents contribute financially to raising their children, in proportion to their ability to pay.

What Does Child Support Cover?

Child support is intended to contribute towards the costs of raising children. These costs can include everyday living expenses as well as education, healthcare, and other expenses associated with a child’s upbringing, including:

• food and groceries, including meals, snacks and school lunches;
• housing costs, including accommodation, utilities and household expenses;
• clothing, including school uniforms, everyday clothing and shoes;
• education costs, including school fees, textbooks, stationery and excursions;
• medical and health expenses, including medical and dental treatment, glasses, medications and health insurance;
• extracurricular activities, such as sport, music lessons, clubs and other activities;
• transportation, including travel to school, activities and medical appointments; and
• personal expenses, including toiletries, haircuts and other basic personal items.

However, an administrative child support assessment does not allocate responsibility for each individual expense. Rather, Services Australia applies a statutory formula to determine an annual rate of child support having regard to matters including each parent’s income, their percentage of care, and the costs of the children.

This distinction can become particularly important where children have significant expenses, such as private school fees, substantial medical or orthodontic treatment, or expensive extracurricular activities. Depending on the circumstances, these expenses may be addressed through a child support agreement, the change of assessment process, or, in appropriate cases, a Court order.

Periodic and Non-Periodic Child Support

Child support can be structured through periodic payments, non-periodic payments, or a combination of both.

Periodic child support consists of regular payments, usually weekly, fortnightly, or monthly, towards the ongoing costs of raising a child. An administrative assessment issued by Services Australia ordinarily establishes an annual rate of child support, which is then paid in installments.

Non-periodic child support involves payment of particular expenses or the provision of financial support in another form. For example, arrangements may provide for payment of:

• private school fees and associated educational expenses;
• health insurance premiums;
• medical, dental, psychological or orthodontic expenses;
• extracurricular activities;
• agreed travel expenses; or
• amounts directly to a school, healthcare provider, or other third party.

A child support agreement can provide for these expenses to be paid instead of, credited against, or in addition to periodic child support. Section 84 of the Child Support (Assessment) Act 1989 (Cth) recognises various forms of child support agreement provisions, including periodic payments, non-periodic payments and lump-sum payments.

Importantly, simply paying a particular expense directly does not necessarily reduce a parent’s periodic child support liability. If the parties intend a non-periodic payment to reduce the annual rate otherwise payable under an administrative assessment, the agreement needs to clearly specify how that reduction is to operate.

For example, an agreement might require one parent to pay private school fees directly to the school and provide for those payments to reduce the assessed annual rate by a specified amount or percentage. Alternatively, the agreement might provide that private school fees are to be paid in addition to periodic child support. Clear drafting is therefore important.

A Court can also make orders requiring child support to be provided in ways other than regular periodic payments. For example, in appropriate circumstances, a parent may be required to contribute towards private school fees or significant medical expenses. This can be particularly relevant where the child’s education or care reflects what the parents had intended or expected during their relationship.

Where parents are agreeing to the payment of particular expenses, the agreement should clearly address matters such as:

• which expenses are covered;
• whether payments are additional to, or credited against, periodic child support;
• each parent’s contribution;
• who is responsible for choosing the school, practitioner or activity;
• whether prior written agreement is required before an expense is incurred;
• how and when invoices are to be provided and paid;
• how rebates, refunds, insurance payments, and government benefits are treated;
• whether any annual limits or increases apply; and
• what happens if an expense changes or is no longer incurred?

Who Pays Child Support?

Generally, the parent with less care time (the “payer”) pays child support to the parent with more care time (the “payee”). However, when parents share care relatively equally, child support calculations become more complex and may result in reduced or no payments, depending on both parents’ incomes.

Alyson Gale, Director and Family Lawyer, Resolve Conflict says: “The Child Support Scheme affects a significant proportion of Australian families, supporting approximately 1.1 million children nationwide. The amount of child support payable varies significantly depending on factors including the parents’ incomes, the number and ages of the children, and the care arrangements.”

How Child Support Is Calculated

Services Australia uses a formula-based assessment that considers multiple factors to determine a fair child support amount. Understanding this formula helps you anticipate your obligations or entitlements and identify when assessments might not accurately reflect your circumstances.

The Child Support Formula

The assessment formula considers:

1. Each parent’s income: Including salary, wages, business income, investment returns, and certain government benefits;
2. Number of children: children of the parties’ relationship and relevant dependent children from other relationships;
3. Children’s ages: Older children have higher costs, affecting the formula;
4. Care arrangements: The percentage of nights each parent has the children impacts calculations;
5. Self-support amount: Before child support is calculated, each parent is allowed to retain a set amount of their income to meet their own basic living expenses. This is known as the self-support amount. Only income above this amount is generally taken into account when calculating a parent’s child support income.

Income Assessment

Child support is generally calculated using each parent’s adjusted taxable income (ATI). This is broader than just a parent’s salary or wages and can include other sources of income, such as investment income, certain superannuation contributions, and some government or employment benefits.

Services Australia will generally use the income information available to it when making an assessment. If a parent’s financial circumstances change significantly, for example, because they lose their job or their income substantially decreases, they may be able to ask Services Australia to use a more current estimate of their income.

Important note: Child support isn’t tax-deductible for payers, and recipients don’t pay tax on child support received.

How care arrangements affect child support

The amount of time a child spends in each parent’s care can affect the amount of child support payable. Generally, as a parent provides more day-to-day care for a child, the child support formula recognises that they are meeting more of the child’s costs directly.

Services Australia considers each parent’s percentage of care, together with factors such as each parent’s income and the costs of raising the child, when calculating the amount of child support payable.

This means that changes to parenting arrangements can sometimes result in a change to a child support assessment.

Managing Child Support: Your Three Options

There are different ways parents can manage child support depending on their circumstances. Services Australia can assess the amount payable, with parents then choosing whether to manage payments privately or have Services Australia collect them.

Alternatively, parents may formalise their own arrangements through a child support agreement.

Option 1: Private Collect

Under a Private Collect arrangement, Services Australia calculates the amount of child support payable, but the parents manage the payments directly between themselves.

This may suit parents who are comfortable communicating about financial matters and are confident that payments will be made reliably.

Parents using Private Collect should keep clear records of all child support payments and any other agreed expenses paid for the children.

If circumstances change, Services Australia can reassess the amount of child support payable in accordance with the usual child support assessment process.

Option 2: Child Support Collect

With Child Support Collect, Services Australia calculates the child support assessment and also collects the payments from one parent before transferring them to the other.

This option can provide greater oversight and may be particularly useful where parents prefer not to manage payments directly or where there have been concerns about payments being late or missed.

Services Australia maintains records of payments and has various powers available to recover unpaid child support where necessary.

Option 3: Child Support Agreements

Parents who can agree on how child support should be paid may choose to formalise their arrangements through a child support agreement.

A child support agreement can provide greater flexibility and certainty than relying solely on the standard child support formula. For example, parents may wish to make specific arrangements for expenses such as private school fees or other significant costs associated with their children.

There are two main types of child support agreements:

Limited Child Support Agreements

A limited child support agreement requires a child support assessment to already be in place. The amount payable under the agreement must generally be at least the amount that would otherwise be payable under the assessment.

Independent legal advice is not compulsory, although obtaining legal advice before entering into an agreement is recommended. Limited agreements can also generally be brought to an end more readily than binding agreements.

Binding Child Support Agreements

A binding child support agreement provides significantly greater flexibility. Parents can agree on the amount and manner in which child support will be provided, including arrangements that may differ from a Services Australia assessment.

For example, a binding agreement may provide for regular child support payments, payment of particular expenses such as private school fees, or a combination of different forms of financial support.

Importantly, each parent must obtain independent legal advice before entering into a binding child support agreement, and strict legal requirements must be satisfied for the agreement to be binding.

Binding child support agreements can provide greater certainty for families, particularly where parents want to establish longer-term financial arrangements rather than having their arrangements change whenever income or care arrangements fluctuate.

However, they should be entered carefully. Once a binding child support agreement is in place, it can be difficult to change or bring to an end. Depending on the circumstances, this may require the parents to enter into a further agreement or, in some cases, an application to the Court.

Given the potentially significant and long-term financial consequences of a binding child support agreement, it is important to obtain specialist family law advice before entering into one.

When Child Support Assessments Don’t Seem Fair

What happens when the formula-based assessment doesn’t accurately reflect your family’s circumstances? Services Australia and the courts provide mechanisms for challenging assessments you believe are unfair.

What if you disagree with a child support assessment?

If you believe a child support assessment does not accurately reflect your circumstances, there may be options available to have it reviewed or changed.

For example, you may need to take action if:

• the income information used by Services Australia is incorrect or no longer reflects your circumstances;
• the percentage of care recorded for the children is incorrect;
• your parenting arrangements have changed;
• there are significant costs associated with the children, such as special medical, educational, or other needs;
• you incur substantial costs in spending time with the children, including significant travel expenses; or
• there are other special circumstances that mean the usual child support formula does not produce an appropriate outcome.

The appropriate process will depend on the reason you are challenging the assessment. This may involve updating information with Services Australia, lodging an objection, or applying for a change of assessment in special circumstances.

Child support disputes can become complex, particularly when there is disagreement about income, care arrangements, or a child’s financial needs. Obtaining legal advice can help you understand which process applies and what information or evidence may be required.

Formal Objection Process

If you believe a child support decision is incorrect, you may be able to lodge a formal objection with Services Australia.

Strict time limits apply. For many child support decisions, an objection must generally be lodged within 28 days of receiving notice of the decision if you are in Australia, or 90 days if you are overseas.

Different rules and time limits may apply to some decisions, including decisions about the percentage of care of a child. It is therefore important to act promptly if you disagree with a decision rather than waiting to see whether the issue resolves itself.

An objection generally needs to identify the decision being challenged, explain why you believe it is incorrect, and provide relevant information or evidence supporting your position.

The appropriate evidence will depend on the issue in dispute and may include financial information, evidence about parenting and care arrangements, or documents relating to particular expenses or circumstances.

Child support objections can involve strict procedural requirements and time limits. We recommend obtaining legal advice as soon as possible after receiving a decision you disagree with, particularly where the issues involve disputed income, care arrangements, complex financial circumstances, or a significant amount of child support.

Services Australia’s processes, forms and requirements can change over time. You should check the current requirements directly with Services Australia or obtain legal advice before taking action.

Change of Assessment Applications

The standard child support formula does not always produce an appropriate outcome for every family. In certain special circumstances, a parent may be able to apply to Services Australia for a change to their child support assessment.

There are specific grounds on which a change of assessment can be sought. These may include circumstances where:

• a child has significant or unusual medical, educational, or other needs;
• there are substantial costs associated with a parent spending time or communicating with a child;
• the costs of educating or caring for a child are significantly higher because of arrangements intended by the parents;
• a parent’s income, earning capacity, property, or financial resources are not adequately reflected in the ordinary assessment; or
• other particular financial circumstances mean the standard formula does not produce an appropriate result.

A change of assessment is not automatic simply because one parent considers the assessed amount unfair. Services Australia must consider whether the relevant legal requirements are satisfied and, if so, whether a change to the assessment is appropriate.

Applications can involve detailed financial information and supporting evidence. The circumstances of each family are different, and the outcome will depend on the particular facts of the case.

If you believe the standard child support assessment does not properly reflect your circumstances, we recommend obtaining legal advice about whether a change of assessment application may be appropriate and the evidence required to support your position.

Administrative Review Tribunal (ART)

If you remain dissatisfied after Services Australia has considered an objection or certain other child support decisions, you may have further review rights through the Administrative Review Tribunal (ART).

In some circumstances, further review or an appeal to a court may also be available. Different processes and strict time limits apply depending on the decision being challenged.

If you are considering challenging a child support decision, we recommend obtaining legal advice promptly about your review rights, applicable time limits, and the most appropriate course of action.

Matters That May Require a Different Process

Not every child support dispute can be dealt with through the usual objection or review process. Some issues may require a different legal pathway.

For example, disputes about parentage, certain decisions about the collection or recovery of child support, and matters involving a Departure Prohibition Order may need to be dealt with through a different process or, in some circumstances, by a court.

If you are unsure which process applies to your situation, obtaining legal advice early can help identify the appropriate steps and any relevant time limits.

Consequences of Non-Payment

Refusing to pay child support because you disagree with the assessment isn’t a legal option.

While you pursue objections or appeals, child support obligations continue to accrue.

If you don’t pay child support, Services Australia can:

1. Employer deductions: Automatically deduct child support from your wages (most common method)
2. Bank account deductions: Take lump sums directly from your bank accounts without warning
3. Tax refund interception: Withhold and redirect tax refunds to cover arrears
4. Income support deductions: Deduct arrears from Centrelink payments or Department of Veterans’ Affairs benefits
5. Credit reporting: Report child support debt to credit agencies, affecting your credit rating
6. Legal action:
   1. Court proceedings to recover debt
   2. Penalties and enforcement costs added to your debt
7. Departure Prohibition Order (DPO): Prevents you from leaving Australia until the debt is addressed
8. Suspend or cancel a driver’s license: In some jurisdictions

According to Services Australia data, approximately $1.6 billion in child support debt accumulates annually, though aggressive collection methods have improved payment rates to around 65% of assessed amounts actually collected.

Important: If you genuinely cannot afford assessed child support due to changed circumstances, apply for a change of assessment or objection immediately rather than simply not paying. Services Australia has discretion to adjust assessments prospectively, but they rarely backdate reductions unless there are exceptional circumstances.

Practical Tips for Managing Child Support

Communication Strategies

Even when Services Australia manages assessments and collections, effective communication between parents reduces conflict and confusion:

• Keep it business-like: Discuss child support in neutral, factual terms
• Document everything: Keep records of all agreements, payments, and communications
• Use written communication: Email or text messages create records and reduce emotional escalation
• Focus on children’s needs: Frame discussions around what children require, not what feels “fair” to each parent
• Seek family dispute resolution when stuck: A family dispute resolution practitioner can facilitate conversations about child support disputes

When Child Support and Care Time Are Linked

Changes to parenting arrangements can affect the amount of child support payable because the child support formula takes into account the percentage of care provided by each parent.

However, decisions about parenting arrangements should focus on the best interests of the child, rather than the financial consequences for either parent.

If parenting arrangements change, it is important to consider whether the change may also affect an existing child support assessment and whether Services Australia needs to be notified.

A family lawyer can advise you about the interaction between parenting arrangements and child support, particularly where care arrangements or the appropriate percentage of care are disputed.

Shared Care and Self-Sufficiency

Where both parents provide substantial care for a child, this is taken into account when calculating child support. The child support formula recognises that each parent meets some of the costs of raising the child directly while the child is in their care.

However, shared or even equal care does not necessarily mean that no child support will be payable. The calculation also takes into account each parent’s income and other relevant factors.

As a result, one parent may still be required to pay child support even where the children spend approximately equal time with each parent.

Child Support and Property Settlement

Child support and property settlement are separate legal issues, but it can be important to consider them together when negotiating the financial arrangements following separation.

For example, parents may be discussing the division of property at the same time as arrangements for ongoing child support, private school fees or other expenses for the children.

In some circumstances, parents may also consider a binding child support agreement as part of their broader financial negotiations. However, specific legal requirements apply to these agreements and they should be carefully considered alongside any property settlement.

Obtaining advice about both issues can help ensure that your overall financial arrangements are practical, appropriate and properly documented.

Special Situations

High-Income Earners

When a parent’s income exceeds the “cap” (currently around $164,000 annually), different rules apply:

• Child support is calculated on income up to the cap using the standard formula
• Income above the cap may or may not result in additional child support, depending on circumstances
• Parents can make binding agreements about support for high incomes
• Either parent can apply for a change of assessment, arguing that children need more support based on the family’s lifestyle before separation

Overseas Child Support

When one parent lives overseas:

• Australia has reciprocal arrangements with several countries for child support enforcement
• The Hague Child Support Convention facilitates international child support collection
• Country-specific agreements exist with New Zealand, USA, and several others
• Services Australia can help pursue child support from overseas parents

When the receiving parent lives overseas:

• Assessment and collection can continue
• Payment methods may be more complex
• Exchange rate considerations apply

Starting or Changing Child Support

How to begin a child support assessment:

1. Apply online through MyGov
2. Provide details of both parents, children, and care arrangements
3. Services Australia contacts the other parent
4. Assessment is made within 28-90 days
5. Parents choose the collection method

Updating assessments when circumstances change:

• Income changes significantly (more than 15% increase/decrease)
• Care arrangements change
• Children turn 18 or leave school
• New children are born to either parent
• Parent starts receiving Centrelink benefits

Either parent can request reassessment when these changes occur. Services Australia reassesses automatically once annually based on tax returns.

How Resolve Conflict Can Help

Navigating child support- whether establishing initial assessments, negotiating agreements, or disputing unfair calculations requires both legal expertise and practical understanding of family dynamics.

Resolve Conflict family law and mediation services include:

• Initial consultations to understand your child support rights and obligations
• Binding and limited child support agreement preparation, including Certificates of Independent Legal Advice
• Objection and appeal preparation for disputed assessments
• Change of assessment applications based on special circumstances
• Representation at Administrative Review Tribunal hearings
• Integration of child support with broader property settlement negotiations
• Family dispute resolution when parents cannot agree on child support arrangements

Why Work With Experienced Family Lawyers

Child support law is complex and nuanced. Child custody lawyers who regularly work in this area understand:

• How care arrangements affect financial outcomes
• Strategic timing of applications and objections
• Evidence requirements for successful special circumstances claims
• How to structure binding agreements that protect your interests while meeting children’s needs
• When to negotiate and when to pursue formal processes

Take Your Next Step

Whether you’re establishing child support for the first time, reviewing an assessment that doesn’t reflect your circumstances, or negotiating an agreement with your child’s other parent, early advice makes a significant difference.

Your first interview is charged at a flat rate of $450 plus GST for up to one hour. During this appointment, we’ll:

• Explain your child support obligations or entitlements
• Assess whether your current assessment accurately reflects your circumstances
• Discuss options for agreements, objections, or appeals
• Provide a free customised resource pack of family law information
• Offer a free follow-up letter and telephone discussion summarising our advice
• Give estimates of likely costs for your matter

We also offer a complimentary 15-minute phone consultation to discuss your situation and how we can help.

Contact Resolve Conflict

Phone: (03) 9620 0088
Email: info@resolveconflict.com.au
Location: Level 24, 459 Collins Street, Melbourne, VIC 3000