Child Support Guide for Australian Parents
The Child Support Guide for Australian Parents is an adapted version of the Australian Government’s Child Support Guide. It takes a different approach to the government edition, which was “designed to assist decision makers administering social policy law.”
Our Parents’ Guide is written for the benefit of parents. Sections contained in the government version have been skipped, minimised or expanded according to relevance to clients of the system. Some new sections have also been introduced.
Assessment
A child support assessment is the formal determination of how much child support is payable between parents. It is usually calculated using the standard formula, though it can also reflect agreed arrangements.
The assessment is the legal basis of a child support liability and determines what is owed. Services Australia issues an assessment notice for each child support period with all the essential details.
Child Support Formula
The child support formula, also known as the basic formula or formula 1, calculates how much child support is payable using an income shares approach.
The formula combines parent incomes and care levels to determine each parent’s share of the cost of children. The payment reflects the difference between income contribution and the care each parent provides.
Income
Child support income is based on a parent’s adjusted taxable income, with a self-support amount deducted and, where relevant, other recognised adjustments.
Income is used to determine each parent’s share of financial responsibility in the assessment. Parent incomes are also combined when calculating the cost of children.
Care Percentage
Care percentage is the share of time a parent looks after a child, usually based on the number of nights the child stays with each parent over a year.
Care percentage is used in the formula to recognise the level of care provided. High care percentages are associated with receiving child support.
Change of Assessment
A Change of Assessment, often called a COA, is a review process used when the child support formula does not properly reflect the circumstances of a case.
Common reasons for a COA include income that does not reflect true financial capacity, earning capacity issues, and significant child-related costs such as education or medical needs.
Objections and Reviews
Objections and reviews are the processes used to challenge a child support decision, starting with an objection that triggers an internal review by Services Australia.
An objection involves a reassessment by a different decision maker. Further review is available if the outcome remains disputed.
Debt and Enforcement
Child support debt and enforcement deals with unpaid child support, where missed payments first form arrears and may then become debts owed to the Commonwealth when the case is collected by Services Australia.
Registered debt can be recovered through enforcement action such as employer deductions, tax refund intercepts, and other collection powers.