Backdating is zero days when first applying, or 3 months for unpaid assessments.
Child support in Australia can be backdated in certain circumstances but not others. It depends on the situation.
- Payments can only start after an application for child support is made, meaning there is no backdating (0 days) when you first apply.
- For private collect arrangements, backdating is normally only up to 3 months from when a payer fails to make payment.
- For payers, CSA rarely backdates payments to reduce liabilities but may do so to increase them.
Let’s explore the different backdating timeframes and policies. Our general advice is to put in claims as early as possible that may be to your financial benefit.
When a Parent Applies for Child Support
When a parent first applies for child support, payments cannot be backdated to any time before the application date. The effective start date for child support is the day the application is lodged with Services Australia. This rule is strict, with no exceptions for backdating payments before this date. Zero backdating is allowed in terms of the initial application.
According to Section 7A(2)(a) of the Child Support (Assessment) Act 1989 (the Act), the child support period begins on the day the application for an administrative assessment of child support is properly made. This means that child support can only be backdated to the date the application was submitted, and not any earlier.
Backdating in Private Collect Arrangements
In private collect arrangements, where parents manage the child support payments directly without government intervention, backdating is possible but limited. If the paying parent fails to make payments, the receiving parent can request the CSA to collect unpaid amounts.
In typical cases, the CSA can backdate these payments up to 3 months from when the request was made. However, in exceptional circumstances—such as illness, threats from the payer, or other significant events that prevented timely action—backdating can be extended to 9 months. Each case is evaluated on its merits to determine if these circumstances apply.
Significant Income Drops
Parents who experience a significant drop in income often seek to adjust their child support payments. However, backdating in these cases is typically not allowed. Adjustments due to income reductions usually apply from the date the application or notification is made, not retroactively. This means any reduction in payments will take effect going forward, not for previous months.
Errors and Change of Assessment Applications
If there is an error in the child support assessment or if a parent applies for a Change of Assessment (COA), the rules for backdating are more flexible. The CSA can backdate changes up to 18 months from the date the application for adjustment was made.
This backdating can work in favor of either parent, depending on whether the adjustment reflects a higher or lower income than originally reported. For example, if it’s found that a parent underreported their income, the CSA can adjust the child support payments retroactively to reflect the correct amount for up to 18 months.
Failure to Lodge Tax Returns
One notable exception to standard backdating rules involves cases where a parent fails to lodge tax returns, leading to underpayment of child support. In such scenarios, there may be no strict time limit on backdating.
Once accurate income information is provided, adjustments can be made for past periods, potentially extending well beyond the usual limits.
This approach ensures that child support reflects the payer’s true financial capacity, even if the correction comes much later. The CSA may require the paying parent to cover any shortfall in payments from earlier periods once the correct income information is available.
Court-Ordered Backdating
In certain cases, a court may allow child support to be backdated for up to 7 years (Section 112 of the Act), particularly if there were delays in proving paternity or other legal issues. This generally involves a section 106A declaration where the court orders that child support should have been paid from the date the initial application was made.
Such orders are typically used in complex cases where a significant amount of time has passed between the original application and the resolution of legal issues, such as establishing paternity.