The Australian Government, through the Child Support Agency, makes an assessment of child support.

The Child Support Agency will also collect the child support.

It is possible to agree that child support will be collected privately.

Child Support Agreements can be made and filed in the Child Support Agency so you can have a private agreement in place which overrides the child support assessment, in certain circumstances. Limited Agreements are formal Agreements in writing and signed by both parties. Pre-conditions of a Limited Agreement are that a Child Support Formula Assessment is already in place and the amount payable under the Limited Agreement must be equal to or more than the amount assessed by the formula. A Limited Agreement can be ended if both parents agree to end the Agreement, more than three years has passed and written notice is provided by the parent who wants to end the Agreement, there is a Court Order that sets aside the Agreement, the Agreement varies by more than 15% from the previous assessment in circumstances not included in the Agreement and one of the parents wants to end it or a new Agreement replaces the existing Agreement.

Parents can also enter into Binding Agreements which are different to limited Agreements in these respects: -

• The parties must have independent legal advice before they enter into or end the Agreement
• The lawyer for each party must provide a statement that they provided the party with independent legal advice and the Agreement must also include an acknowledgement that the advice has been given
• The Agreement may be made for any amount agreed, even if it is less than the formula assessment
• The Agreement can only be ended by a new Binding Agreement or by a Court Order setting aside the Binding Agreement

A Child Support Formula Assessment does not need to be in place.

Binding Agreements can include lump sum payments which can be by way of transfer of property, to be credited as child support. If that Agreement is made, there must be a formula assessment in place and the lump sum must be equal to or greater than the annual child support rate under that assessment.

If the spouse who receives child support is in receipt of an income tested pension or benefit, then the amount of child support agreed in the Child Support Agreement must not be less than the assessment.

The Child Support Assessment Act provides a mathematical formula for the calculation and assessment of child support. There is an online calculator – www.csa.gov.au.

After separation, no assessment is made until an application is lodged.

The Family Court of Australia/Federal Magistrates Court cannot assist with the assessment or collection of child support unless an application has been made to the court and it is convenient for the child support matter to be heard by the court.

The Child Support Assessment and Collection Acts are complex pieces of legislation.

We can assist you if you have queries.