Many clients think family lawyers and the Family Law Act 1975 (Cth) determine child support, but in Australia it’s handled by Services Australia under the Child Support (Assessment) Act 1989 (Cth).
Child support provides financial aid for children under 18, while child maintenance is for adult children over 18.
Child support can be arranged through a private financial agreement or a child support assessment.
Child support assessment: Services Australia conducts an administrative assessment based on an application from either parent or the child’s carer. Factors considered include the parent’s taxable income, fringe benefits, foreign income, investment loss, tax-free pensions and superannuation contributions. Assessments may be revised due to errors or changes in the care percentage of the child. Private financial agreements enable parents to arrange financial support privately.
Limited agreements: These are formal arrangements specifying payment amounts and expenses, lasting up to three years, and can be extended by mutual consent or terminated due to circumstances such as unemployment.
Binding agreements: These are harder to terminate and offer a more definitive resolution on child support. Seek legal advice to fully understand each of these alternatives and how they may impact you and your children.
Shelly Brown, Paralegal, Catton & Tondelstrand Lawyers, Kon-Tiki Business Centre Tower 1, Level 3, Suite 315, 55 Plaza Parade, Maroochydore, 5609 4933, ctlawyers.com.au.
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