Child Maintenance
Financial support for children whose parents have separated is covered by the Child Support laws, which are administered by the Child Support Agency.
The support a parent is liable to pay is determined by a formula which takes into account how many children are involved (including children by another relationship), the taxable incomes of both parents, the ages of the children and the time spent with the children. The Child Support Agency website (www.csa.gov.au) has an on-line calculator, as well as other useful tools such as a household budget checklist.
Child Support continues until a child reaches eighteen, marries or is in de facto relationship or is subject to child welfare laws. It continues until the last day of schooling if a child turns eighteen whilst still at full-time school. If a parent approaches Centrelink for assistance after a separation, Centrelink normally requires a Child Support Application to be initiated, or a parent can lodge an application themselves.
If parents have reached an agreement, they can enter into a Child Support Agreement, which once registered with the Agency takes the place of an Agency assessment based on the formula. These agreements are common where a parent has agreed to private schooling, to provide private health insurance or to contribute to medical costs.
Using a formula means that there will be cases where an inappropriate result is produced, so there are opportunities to have an assessment "Departed from". The most common grounds for departure are:-
- That the real financial position of a party is not reflected in the assessment. This can deal with the case of an earner in a cash industry, or a person whose taxable income does not reflect their lifestyle or financial resources.
- Special needs and demands of a child. Having the care of a child with pronounced medical problems, or a child with special needs, such as autism, can not only be expensive, but can reduce the carer's earning capacity.
- High costs of contact. If for example interstate travel is necessary for contact, costs of travel, accommodation, extra food costs and the like are looked at, and if those costs exceed 5% of the Child Support Income Amount an allowance can be made.
- High child care costs for a child under twelve years old.
- That a parent's income earning potential is not recognized. Although the formula is based on taxable income, a parent who has chosen to earn less than their potential income may find their liability increased to recognise their potential to earn more.
If the assessment is one which might be able to be varied by a departure, the first step is a review by the Agency, which has Review Officers appointed for this purpose. The Review findings will be reflected in a new assessment, but there can be an appeal to a court if a party is still dissatisfied.
The Child Support Agency will register and enforce child maintenance orders made in many overseas countries in respect of a child of an Australian resident, and will assist in the enforcement overseas of Australian child support liabilities, again subject to reciprocal arrangements with the country concerned. Only a parent can be liable to pay Child Support, but a carer such as a relative can seek child support for a child in their care.
The Child Support system assumes that on turning eighteen, a child miraculously ceases to be a financial drain. Most parents will recognize the fallacy in this, and the potential exists to seek maintenance for a child over eighteen through the court system. The law requires proof of a need (usually the easy part) and an ability to pay. In practice a potential payer usually needs to have a well above average income to be at risk of an over-eighteen maintenance order.
As you can see, the field of Child Support can be a minefield. If you need help or advise, the Quinn & Scattini Family Law team has the knowledge and experience to help you, and you can talk to a Family Lawyer at any of our offices.
If you would like to find out how Quinn & Scattini can help you, please call us on 1800 999 529, or email us at mail@quinnscattini.com.au
