What are the factors that affect the average child support payment? Child support is always a hot topic in family law matters. How much child support should each parent pay? Does changing work affect how parents pay child support? What about divorce and its effect on child support payments? All of these questions are evident when it comes to supporting your child financially.
Child support is an ongoing financial responsibility that parents must provide so their children can live a normal, stable life. This will always cover proper shelter, food, clothing, medical attention, school fees, and transportation. While this may sound a lot to other parents, it’s paramount under the Family Law Act that children receive this level of care.
Hence, parents should remember that having children is a big responsibility and the average child support payment is important.
The Basic Formula for Child Support
Services Australia provides a basic formula when they calculate child support. Services Australia is a government agency that introduced the Child Support Scheme in Australia. They are generally a neutral third party that ensures fairness in child support arrangements for separated and divorced couples. Below is their formula for calculating child support:
- Calculate each parent’s child support income: This is their income after basic living expenses and any other dependents.
- Add both parents’ income: Total it up. Sometimes both parents can still come up with their own average child support payment arrangements.
- Calculate income share: Divide each parent’s income by the total. This is what percentage of the child’s expenses each parent is responsible for based on their income.
- Calculate care percentage: This is how much time each parent spends with the child.
- Look up cost percentage: Use a table that has care time and number of children to find a cost percentage for each parent.
- Calculate each parent’s child support percentage: Subtract the cost percentage from the income percentage for each parent. A positive child support percentage means they owe, and negative means they receive.
- Find the child’s total costs: Use another table that has the parents’ combined child support income to find the total cost of the child.
- Calculate the child support: Multiply the child support percentage (from step 6) by the child’s total costs (from step 7). If both parents owe child support, subtract the smaller from the bigger to get the average child support payment or final amount of child support payable.
The Role of Services Australia
Services Australia usually assesses the income data from the Australian Taxation Office (ATO). They will base their calculations on the parent’s income for the financial year before their current child support periods. So, parents need to file their tax returns on time so Services Australia can make an accurate child support assessment.
Average Child Support Payment: Fixed Rate and Minimum Rate
Services Australia also offers fixed and minimum rates for child support calculation purposes. Here’s a table that compares both of the rates.
| Fixed Rate | Minimum Rate |
| The fixed rate for child support periods starting on or after 1 January 2024 is $1,720 per child per year.This rate only applies to parents who: Has low incomeDon’t have shared careDon’t get government income support | Minimum rates are the lowest amount a parent has to pay. In contrast, the current minimum rate as of the same date is $519 AUD per year. This rate applies if: The regular calculation results in a lower amount; andThe parent doesn’t have regular care of the child(ren). |
Are There Exceptions to These Rates?
To some parents, these rates may seem too much or non-affordable. Luckily, there are exceptions that Services Australia provides. If a parent cannot afford such rates because of how much they earn, they may apply to reduce the payment. Moreover, Tthere are limits on how much a parent can pay if they have multiple child support cases.
What about parents who receive government income support and owe child support? If this is the case, Services Australia may deduct up to three times the minimum rate from their payment.
How Should Parents Report Their Income Changes?
Parents must inform Services Australia of any income changes as soon as they happen since this will also affect their average child support payment. This includes changes in income support payments from Centrelink. If your current income is lower than the one used in your assessment, you may be able to provide an estimate of your current income. However, specific conditions apply:
- Your current income must be at least 15% lower than what they’re using now;
AND either:
- The ATO has already assessed your income for the relevant financial year; or
- the ATO hasn’t assessed it yet, but you’ve declared your income.
Are There Exceptions for Income Estimates?
Estimates are not accepted for child support arrangements based on the following:
- Limited agreements
- Binding agreements
- Change of assessment process decisions
- Court orders
- Assessments from other countries
Other Ways to Calculate Child Support
Indeed, every parent’s circumstances are different and unique. Some calculations may work for them and some may not. This may be one of the reasons why they ask themselves “What is the average child support payment that fits my situation?”. Most cases will almost always use the basic formula we have highlighted above. However, there are other formulas that parents can use.
Are you still confused about what formula to choose? Have you had any problems with your ex-partner about child support payments? Family lawyers are the experts here to answer all of these questions and more! Beyond their ability to handle family law matters, they can also help with financial matters like child support.
Read: What Age Do You Stop Paying Child Support? | JB Solicitors
Identify Your Average Child Support Payment With Us
Divorce is never easy and many separated and divorced parents think of how to settle their assets and finances. However, it’s paramount that they prioritise what’s best for their children. We at JB Solicitors value how parents should support their children through child support agreements.
This includes following the child’s best interests and proper child support payments regardless of the parent’s marital status. Our family lawyers can help you decide on proper child support arrangements and how to approach divorce proceedings. Disputed parties may also opt for our mediation services should they want out-of-court arrangements.
Contact us today if you want to know your average child support payment for your child.
