Child Support
When parents separate, both remain financially responsible for supporting their children.
The Australian child support system is designed to ensure that children continue to receive appropriate financial support from both parents, based on their respective incomes and care arrangements.
At Baird & McGregor Lawyers, we provide clear advice about child support, including assessments, agreements and disputes, to help you navigate what can be a complex system.
What is Child Support?
Child support is the financial support provided by one parent to the other (or a carer) to contribute to the costs of raising a child after separation.
Child support is governed by:
the Child Support (Assessment) Act 1989 (Cth); and
the Child Support (Registration and Collection) Act 1988 (Cth).
The system is administered by Services Australia (Child Support).
The child support scheme is based on the principle that both parents are responsible for contributing to the financial costs of their children
Child support is not intended to punish or reward either parent — it is designed to ensure that children are properly supported.
Child Support Assessments
In most cases, child support is determined by a formula assessment carried out by Services Australia.
Either parent can apply for an assessment.
Child support is calculated using a statutory formula set out in the legislation. The formula takes into account:
each parent’s income
the combined income of both parents
the percentage of care each parent provides
the age and number of children
the estimated costs of raising children in Australia
Although the formula is detailed, the key steps include:
Working out each parent’s child support income
Calculating each parent’s share of the combined income
Determining each parent’s percentage of care
Assigning a cost percentage based on care
Comparing income percentage to care percentage
Applying the costs of children table
Determining whether one parent pays or receives support
In simple terms:
parents with higher income generally contribute more;
parents who provide more day‑to‑day care are credited for that support; and
payments are made to balance the difference
Percentage of Care
The amount of time a child spends with each parent (often measured by nights per year) significantly affects child support. A parent with more care is recognised as directly meeting more of the child’s costs. A parent with less care will usually pay child support. Changes in care arrangements can lead to changes in child support assessments.
Private Child Support Agreements
Parents are not limited to relying on a formula assessment — they can enter into private child support agreements.
Private agreements can deal with:
periodic payments
lump sum payments
payment of school fees
medical or extracurricular expenses
There are two main types:
A. Limited child support agreements
These agreements must be based on an existing child support assessment and be equal to or greater than the assessed amount. They do not require independent legal advice and are more flexible and easier to change or terminate.
B. Binding child support agreements
These agreements do not require a prior assessment and can set higher or lower amounts than the formula. They require each party to obtain independent legal advice and are more difficult to change or terminate.
Where parents want flexibility
The statutory formula is designed to apply broadly across families, but it does not always reflect how parents want to structure financial support. Private agreements allow parents to:
agree on payments that are higher or lower than the assessed amount;
include non‑cash contributions, such as school fees or medical costs; and
structure payments in a way that suits their lifestyle
For example, parents may agree that:
one parent pays private school fees instead of weekly payments; or
specific expenses (e.g. sporting activities or healthcare) are paid directly.
Collection of Child Support
Child support can be managed in different ways:
Private collection — parents manage payments directly
Child Support collection — Services Australia collects and transfers payments
Where child support is not paid:
Services Australia can enforce collection;
debts may be recovered through legal action or enforcement processes
Changing Child Support Assessment
A parent can apply to change a child support assessment where the formula result is unfair or inappropriate.
Common reasons include:
high costs of raising a child (e.g. private schooling, medical needs)
a parent having a higher or lower capacity to earn income
significant financial resources not reflected in taxable income
unusual care arrangements
Who pays for school fees and medical expenses?
The way medical expenses, school fees and other major costs are handled depends on how child support is structured — particularly whether parents rely on a standard assessment or enter into a private agreement.
Under a standard child support assessment by Services Australia, the calculated amount is intended to cover the ordinary costs of raising a child, including:
housing
food and clothing
general education expenses
everyday healthcare costs
These costs are built into the statutory formula and are shared between parents based on their incomes and their respective levels of care. Therefore, higher or unusual expenses may not be fully captured by the standard formula, including:
significant extracurricular activities
ongoing medical or therapy expenses
In these cases, there is often no automatic rule that one parent must pay these costs separately.
Instead, parents may reach their own agreement or apply to change the assessment. A parent can apply to Services Australia for a change of assessment if the formula amount is not appropriate. This may include situations where a child attends private school, a child has significant medical or special needs or the costs of raising the child are higher than average. If successful, the assessment may be increased or adjusted to reflect those additional costs.
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