Child support is a critical consideration for separated or divorced parents in Australia. It ensures that children continue to have their needs met, regardless of changes in family circumstances. But exactly what does child support cover in Australia?
At Hickman Family Lawyers, led by owner and principal Ella Hickman, we understand that navigating the complexities of child support can be challenging. Let’s explore what child support covers in Australia, how it is calculated, and what to do if your payments are underpaid or unpaid completely.
What Does Child Support Cover in Australia?
Child support is designed to contribute to the financial support of children under 18 years of age. It generally covers:
– Basic living expenses: This includes food, clothing, and housing costs for the child.
– Education costs: School fees, books, uniforms, and extracurricular activities such as sports or music lessons.
– Health care: Medical expenses such as doctor visits, dental care, prescriptions, and health insurance.
– Transportation: Costs related to travel, such as commuting to school or other activities.
What Child Support Does Not Cover
While child support covers many essential expenses, there are some costs it does not typically include, such as:
– Private school fees: Unless specifically agreed upon, child support does not automatically cover private school tuition.
– Extravagant or luxury items: Costs for expensive hobbies, holidays, or gifts usually fall outside the scope of child support.
– Non-child-related expenses: Bills or debts incurred by the parents themselves are not covered by child support payments.
How Is Child Support Calculated in Australia?
Child support payments in Australia are calculated using a formula set by Services Australia. This formula considers:
– Parental income: The combined taxable income of both parents.
– Care arrangements: The percentage of care each parent provides to the child.
– Costs of raising children: A standardised table based on the child’s age and the number of children.
– Self-support: A portion of each parent’s income is reserved for their own basic living expenses before calculating their financial capacity to support their child.
Non-Agency and Prescribed Payments
In some cases, parents can make child support payments directly to each other or cover specific expenses, such as school fees or medical bills, instead of paying through Services Australia. These are referred to as:
– Non-agency payments: Payments made directly to the other parent.
– Prescribed payments: Payments made for agreed-upon expenses, such as educational or medical costs.
These payments must be agreed upon by both parents and appropriately documented to avoid disputes.
When Do Child Support Payments Stop?
Child support obligations generally cease when the child:
– Turns 18 (or completes secondary school, whichever occurs later).
– Marries or enters a de facto relationship.
– Moves overseas.
– Becomes financially independent.
Parents can also apply for adult child maintenance in specific circumstances, such as when the child has a disability or is pursuing tertiary education.
Limited Child Support Agreements vs Binding Child Support Agreements
Parents can formalise child support arrangements through:
– Limited child support agreements: Flexible agreements that must align with the formula-assessed amount and can be changed or terminated by either party.
– Binding child support agreements: Legally binding agreements that can include amounts different from the formula assessment. These agreements require legal advice for both parties and are harder to alter or terminate.
What Happens If Child Support Is Underpaid?
If a parent underpays child support, the unpaid amount becomes a debt. Services Australia can take action to recover the debt, including:
– Garnishing wages or tax refunds.
– Seizing property or funds from bank accounts.
– Restricting overseas travel.
Parents should act promptly to address any underpayment issues and seek legal advice if needed.
What Happens If Child Support Payments Are Not Made at All?
If a parent fails to make child support payments, the receiving parent can:
– Report the non-payment to Services Australia.
– Request enforcement measures, such as wage garnishment or legal proceedings.
Persistent non-payment may result in penalties or additional enforcement actions. Seeking advice from a family lawyer can help you understand your options.
Child support plays a vital role in ensuring that children are supported financially after a family separation. Understanding what it covers, how it is calculated, and your rights and responsibilities is essential for both parents.
If you have questions about your child support arrangements or need assistance with a dispute around child support payments to or from your ex, contact Hickman Family Lawyers.
With extensive experience in child support matters, Ella Hickman and her team of child support lawyers in Perth are here to help you.
Call us today to schedule your free 15-minute information call and take the first step towards resolving your family law concerns.
