Child Support in Australia: How Much and How It Is Calculated

How Child Support Is Calculated

Child support is assessed by Services Australia using a formula in the Child Support (Assessment) Act 1989, based on both parents' incomes, the number of children, and the care each parent provides.

The Formula: Five Steps

1. Work out each parent's adjusted taxable income
2. Deduct a self-support amount (~$31,000/year) from each parent's income
3. Combine the remaining amounts to get the income pool
4. Apply the estimated cost of raising children for that income level
5. Adjust for each parent's percentage of overnight care

Care and Its Effect

Care level	Nights per year	Effect
Below regular	Under 52 nights (14%)	No cost offset for paying parent
Regular	52–127 nights	Partial offset
Shared care	128–175 nights	Reduced payment
Primary	176+ nights	Receiving parent may pay nothing

Private Child Support Agreements

• Limited agreement: Must be at or above the assessed amount
• Binding agreement: Any amount (including $0); both parties need independent legal advice

Changing an Assessment

Apply for a change of assessment if income changes significantly, care arrangements change, or there are high costs for the child (medical, education).

Collecting Payments

• Private collect: Parents arrange directly
• Services Australia collect: Government collects and transfers; can garnish wages or Centrelink if the payer defaults

Key Points

• Formula is based on both parents' incomes, number of children, and care percentage
• Private agreements can replace the formula assessment
• Services Australia can enforce non-payment by garnishing wages
• Child support generally ends when the child turns 18