How is Child Support calculated?

One of the most important matters following separation is to ensure that an appropriate level of child support is being paid. In the vast majority of cases, the amount of child support to be paid is calculated under the Child Support (Assessment) Act which is administered by the Child Support Agency.

Can we agree the amount of Child Support?

There are two options.

1. Parties can agree between themselves what the amount to be paid is, taking into account the income of the payer and the payee, the amount of time each cares for the children and the expenses for the children.
2. If the parties cannot agree, then the child support legislation provides a formula that is used to calculate the amount to be paid. That basic formula applies a percentage depending on the number of children, being 18% for one child, 27% for two children, 32% for three children and continuing to a maximum of 36%.

The formula provides a cap for how much of the payer's income is taken into account. The payee can earn up to the cap amount, before his or her income affects the amount of child support the other parent must pay.

How can I calculate the likely Administrative Assessment of Child Support?

By logging onto the Child Support Agency website, www.csa.gov.au  you can enter details online that enable you to calculate the amount of child support likely to be assessed in your case. You will need to enter the age of each child, the annual income of the payer and the payee, and whether the payer has any other children they have to financially support.

Can I challenge a Child Support Assessment?

Yes. Quite often the child support formula provides an unjust result for a party, because it does not take into account the real income of each parent or the needs of children. For example, where children attend private schools and have significant extra-curricular activities, the administrative assessment of child support will not cover the real costs of raising those children. Or, if the payer's income is substantially over the income cap, then restricting the application of the formula to the cap amount may create an unjust result.

In most cases, the first step in challenging an administrative decision is to lodge with the Child Support Agency an Application for Departure from the Assessment. To succeed, you need to establish that in the special circumstances of your case, it is otherwise proper to increase or decrease the amount of child support payable, because one of the grounds for departure exist, such as:

• The assessment does not take into account the true income, assets or resources of a party;
• The child is being educated at a private school;
• The child has special needs that require financial assistance;
• The payer has legal obligations to support other persons that must be taken into account.

The Application for Departure will be assessed by a Review Officer from the Child Support Agency, who will publish written reasons for their decision. If you are aggrieved by that decision, an objection against the determination can again be lodged with the Child Support Agency, but an objection will only be upheld where an error of law is established or there has been a significant factual error made by the Review Officer.

If, following the determination of the objection, either party is dissatisfied, there is then a right to apply to the Family Court for determination of the matter.

How can Barkus Doolan Kelly help you

Our accredited specialists can help in child support matters by:

• Advising on the amount of child support payable;
• Helping to draft Departure Applications;
• Drafting Child Support Agreements to give effect to a settlement;
• Appearing for you in Court on contested child support or child maintenance claims.

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