What Does Child Support Cover in Australia?

Child support is a cash transfer from one parent to the other, with no obligation on how the money is spent. The receiving parent can use it however they choose and is not required to spend it on the child.

The payments essentially put the parents on an equal income footing, allowing each parent to cover general expenses as part of their parenting duties.

Major costs, like private school fees or braces, might not be included in the regular payments. These significant expenses often require extra contributions.

There are no strict rules about who pays for what on a daily basis; parents need to work it out themselves. However, a good rule of thumb is that the percentage of expenses one parent covers should roughly match their percentage of care time.

Key Takeaways

Child support is flexible, and the receiving parent can spend it however they choose.
There is no requirement for the receiving parent to spend the money on the child.
Private school fees and braces are often not covered by regular child support.
Parents can agree on additional contributions for major expenses, or they may use the COA process if they cannot agree.
Parents need to work it out between themselves as to who pays for what.

Overview

Child support in Australia provides financial assistance from one parent to the other to help with the costs of raising a child. However, the receiving parent has full control over how the funds are used and is under no obligation to spend the money on specific items or even on the child.

Significant or non-standard expenses, such as private school fees or braces, are typically not covered by regular child support payments. In these cases, the paying parent may need to contribute additional funds through mutual agreement with the other parent. If they can't agree, either parent can apply for a Change of Assessment (COA) to determine a fair contribution.

Each parent needs to make daily spending decisions when with their child. Parents should also contribute to ongoing expenses such as clothing and sports fees. There are essentially no rules, so outcomes depend on how generous each parent is. You should be willing to pay your fair share towards giving your child a materially good life.

Common Expenses Covered by Child Support

Child support can be used for a variety of child-related expenses, including:

Food. Groceries and meals.
Clothing. Everyday wear, school uniforms, and seasonal needs.
Housing. Rent, mortgage payments, and utilities.
Education. General school fees, textbooks, and other necessary supplies.
Medical care. Routine healthcare, including doctor visits and medications.

The receiving parent is free to allocate the funds as they see fit, whether for these common expenses or any other uses.

Credits for Expenses Met by the Payer

Certain types of payments made directly by the paying parent can be credited towards their child support liability. These are known as non-agency payments and are only available to payers with less than 14% care. Types of payments that can be credited include:

Child care costs. Payments for childcare services for the child.
School and preschool fees. Tuition fees charged by a school or preschool.
Uniforms and books. Costs for school-required uniforms and textbooks.
Essential medical and dental services. Fees for necessary medical and dental care.
Housing costs. The payee’s share of mortgage or rent payments for the home.
Motor vehicle costs. Expenses related to obtaining and maintaining a vehicle.

Up to 30% of the child support liability can be covered by these non-agency payments. However, they must be documented and either agreed upon by both parents or approved by Child Support to be credited.

Does Child Support Cover School Fees?

Private school fees are typically not covered by regular child support payments. Parents often agree on how to share these costs directly. If they cannot agree, they may use the COA process through Child Support to determine how much each parent should contribute.

It matters whether the expense was necessary or agreed. For example, a parent cannot by themselves enroll their child in an expensive school and then require the other parent to contribute.

Does Child Support Cover Braces?

Braces, considered a non-standard medical expense, are generally not covered by regular child support payments. Parents often agree to share the costs, but if an agreement can't be reached, they can apply for a COA to ensure that the expense is fairly distributed.

The Child Support Agency (CSA) normally consider braces to be necessary. However, cosmetic treatment could result in CSA denying an application for a co-contribution.

What Is It Supposed to Cover?

In Australia, parents generally do not dictate how the other spends child support money. The receiving parent has complete discretion over how the funds are used, whether on the child or other household expenses. They are under no obligations.

However, the receiver should not get child support and then ask the other parent to go halves on all expenses. This would be asking the paying parent to contribute twice.

Conversely, the payer cannot expect their monthly payments to the receiver to cover the payer's own parenting expenses. A payer should cover daily expenses when their child visits. They should also contribute to items such as clothing as well as major expenses such as large medical costs.

So what should child support cover? While there are few rules, most parents settle on arrangements that could be considered fair. The general principle is that the cost split should roughly match the care split. For example, if a parent has the children 75% of the time, they should meet around 75% of the expenses like housing, food, and recreation. Child support is actually calculated with this assumption in mind.

Legal Framework and Agreements

The Child Support (Registration and Collection) Act 1988 provides the legal framework for handling expenses, including provisions for non-agency payments and adjustments in special circumstances.

While many parents reach mutual agreements on significant expenses, the COA process is available when needed to ensure fairness in financial responsibilities.

What Does It Cover in Each State?

Child support is a national scheme run by Services Australia (often called the Child Support Agency, CSA). It doesn't matter which state you're in; the rules and expectations are the same.

In QLD, Victoria, and NSW, child support is a payment to help the receiving parent achieve a higher standard of living for the child or children. It should cover most general expenses and can be spent however the recipient chooses.

The same is true in Western Australia, South Australia, and Tasmania. Payments can be put towards any type of expense, saved, or even given to charity. Child support does not cover certain large expenses such as therapy or private school fees. For such unusual costs, parents often pay half each, separately from child support.