When dealing with divorce or separation cases, child support is an important topic. Under this topic, the question of what child support covers in Australia is crucial. The aim of this blog post is to answer the question of what child support covers in Australia by examining firstly what child support means, and analysing the various things that child support covers.
Child support is the financial support payments that one party makes to the other party following a separation or divorce. The purpose of child support payments is for looking after all financial aspects involved in raising the child.
Importantly, this applies to all parents, regardless of whether or not they were parties to a marriage. For instance, child support is applicable in cases involving de facto separations, as well as same-sex couples who have separated.
The burden of maintaining a child must not fall on one party alone. Depending on the unique circumstances of each family, both parents could be liable to make financial contributions in the form of child support payments. The Child Support (Assessment) Act 1989 states that each parent has the legal obligation to financially maintain their child in the form of these payments.
Generally, the non-residential parent – the parent who the child does not live with – needs to pay child support to the residential parent. The Department of Human Services (DHS) is the governmental body which assess child support payments. Parties can make applications for child support on the DHS portal.
People know the DHS more commonly as Services Australia today. Before we explore what child support covers in Australia, let’s understand some other noteworthy points in relation to child support payments.
Child Support: How To Calculate It?
DHS uses a formula to calculate the amount of child support which a parent has to pay. Under this formula, there are a few things that they take into account, such as:
- The number of children involved;
- How old these children are;
- The amount of money earned by each parent;
- The amount of time each parent takes in caring for the children.
There are online DHS estimators that can help estimate the payment amount that you may need to make for your child/ren after your divorce or separation.
What Child Support Covers In Australia?
The most straightforward answer to the question what child support covers in Australia is that it includes general expenses for the child/ren such as housing, clothing, food, and educational expenses. Sometimes, parties can make expenses related to extra-curricular activities on a situational basis.
There are some additional payments that can also go towards the overall child support payment. These additional payments under what child support covers in Australia include “prescribed payments” and “non-agency payments.”
Prescribed payments:
Parties can make these payments to third parties for the benefit of the child. They can be a part of the child support payments. Some examples of prescribed payments include:
- school fees, or pre-school fees;
- child care payments;
- medical expenses including dental expenses;
- motor vehicle costs;
- school uniforms and purchasing any additional textbooks;
- additional housing expenses such as bond payments, mortgage payments;
Non-agency payments:
Non-agency payments are payments which can be made directly to the receiving party. This can also be in the form of non-monetary payments such as transfer of property. These payments can also be counted towards overall child support. This can be done if both parties mutually agree for these payments to be credited towards child support.
How Could Child Support Payments Be Made?
Generally, child support payments are paid periodically. Payments can be made directly by the payer to the payee, or alternatively payments can be made to a third party.
- Periodic payments:
The payers directly make periodic payments to the payee. These can include specific amounts based on Service Australia’s calculations.
- Lump sum payments:
If both parties agree to lump sum payments, the payer can make lump sum payments which must be equal to the amount the payee must receive based on Service Australia’s calculations.
- Non-agency payments:
Non-agency payments can include payments by the payer which pay off the debts that the payee has. These can also be in the form of paying for other services or goods. These payments can be credited towards child support payments as assessed by Services Australia.
The percentage of payments which can be credited towards overall child support payment depends on the kinds of arrangements that both parties make. For example, both parties agree that these non-agency payments can be credited up to 100 percent of overall child support payments.
What Child Support Covers In Australia: When Do The Payments Stop?
People often ask this question after the question of what child support covers in Australia. There are some situations when child support payments can stop. These include:
- If the child is able to financially support themselves;
- If the child turns 18 years of age. In this case, if he/she still requires financial support, he/she will be need to apply for Adult Child Maintenance.
- If another person adopts the child;
- If the child has married someone or has entered into a de facto relationship with someone; or
- If the child passes away.
Importance Of Seeking Legal Advice
This article has given a brief overview of what child support covers in Australia. To summarise, it covers housing, food and clothing expenses primarily. Secondly, it can also cover certain additional expenses such as school fees, uniform fees etc in the form of prescribed payments.
Divorce and separation bring with it a whole slew of legal matters that parties need to finalise. To address all legal concerns, it is important to seek legal advice.
JB Solicitors’ family lawyers can help out with making applications for child support. Our lawyers will assess each situation and provide tailored feedback to ensure that clients reach their desired results.
If you have questions similar to what child support covers in Australia, or other matters related to divorce and separation, you can visit our family law blog.
Contact JB Solicitors today.