*The information contained in this page, and throughout this website, is general in nature. It is current at 30 June 2019 but may have been subject to change since that time. It is not intended to be, and should not be construed as, legal advice. Every case is different and there may be factors which affect the outcome or advice in your particular case. We recommend that you contact us before taking any steps regarding the issues raised in this website.

 

Child Support / Child Maintenance

Periodic Child Support

Periodic child support is managed by the child support agency.  An eligible carer or payer can seek a child support assessment at any time after parties’ separate.

How do I seek a child support assessment?

To seek a child support assessment, you should contact the Department of Humans Services either here or on 131 272.

How much child support will I have to pay / receive?

After seeking a child support assessment, the Agency will use the information provided in the assessment, and the information from your most recent taxation return, to calculate the amount of child support payable / receivable.

The amount of child support payable / receivable is calculated in accordance with a formula that takes into account:

  • The parties respective incomes;

  • The age of the children (and consequently, their cost of care); and

  • The amount of nights the children spend with each parent.

For an estimate of the child support you might have to pay or receive, click on the child support estimator here.

Changing the child support assessment

There are a number of factors which might affect a party’s ability to support their child or children, which are not taken into account by the child support formula. To reflect this, there are a number of grounds upon which a party could apply for a change in their child support assessment. The most common of these grounds are:

  • Reason 1 - There are high costs of enabling a parent to spend time with, or communicate with, the child;

  • Reason 2 - There are high costs associated with the child's special needs;

  • Reason 3 - The costs of maintaining a child are significantly affected by high costs of caring for, educating or training the child in the way both parents intended;

  • Reason 5 - The child support assessment is unfair because the payer has paid or transferred money or property for the benefit of the child;

  • Reason 8 - The child support assessment is unfair because of the income, earning capacity, property or financial resources of one or both parents

  • Reason 9 - The parent's capacity to support the child is significantly affected by costs associated with maintaining, spending time with or communicating with another child.

 

What if a party understates their income?

It is not uncommon for parties to manipulate their income using a company or some other corporate structure.  In these circumstances, you can apply to the agency for a change in assessment on the basis of reason 8 above. 

Upon an application by a payee, the agency will typically carry out a review of the assessment.  That review often involves seeking more information about the parties’ financial position, including any interests in companies or trusts, and requiring them to submit a statement of their financial position.  The agency then makes a decision about the matter after hearing from both parties.

If there is a case already before the Family Court in relation to other issues, such as parenting, property or spousal maintenance proceedings, in some circumstances the Court can deal with the child support issues as well.  When before the Court, parties usually have access to more extensive information about the other’s financial position via among other things, the duty of disclosure, sworn documents, and the ability to issue subpoenas to third parties. 

If there is no other proceedings before the Family Court, the only other way to bring a child support matter before the Court is to go through the appeals process.

Can I offset payments I make for or on behalf of the child against my child support liability?

The child support agency can permit one party to offset payments they make on behalf of the children against a child support assessment.  Subject to any change of assessment as mentioned above, these are typically limited to up to 30% of the child support assessment.  

Common examples of these ‘non-agency payments’ include medical costs, school fees, books, uniforms, cost of a mortgage or other costs associated with the payee’s home, and costs of running the payee’s vehicle.

For more information about this issue, click the link here to the child support guide

 

Can one parent force the other to pay school fees?

Whether or not a parent should be forced to contribute to the costs of private school fees, and in what proportions, is not clear cut.  In deciding this issue, the Court will have regard to a number of different factors set out in the legislation, but often the most important issues are:

  • Whether there was an intention or agreement, or a reasonable expectation, that the child would attend the particular school, or a similar school.  An example of this might be a pre-separation enrolment in the relevant school.

  • Whether there is some reason relating to the child’s welfare, such as some specific need to attend that school, or that type of school. 

  • Whether the party being asked to contribute to the school fees can reasonably afford to do so.  It would generally (but not always) need to be shown that they can meet that expense from their income.

If the Court Orders a parent to contribute to school fees, another issue is whether those payments or some part of them should be offset against any periodic child support that parent is assessed to pay.  This issue would usually be dealt with at the same time, and largely depend upon the financial circumstances of the parties and the costs of the particular children.

Can one parent force the other to pay for ‘elective’ medical procedures, such as orthodontics?

When deciding whether to order one parent to pay for, or contribute to, medical expenses for a child, the Court must take into account a number of different factors.  As with the issue of school fees however, there are several factors that often assume importance, namely:

  • Whether there was an intention or agreement, or a reasonable expectation, that the child would undergo the particular procedure.

  • The consequences of the child not undergoing the relevant procedure.

  • Whether the party being asked to contribute to the costs of the procedure can reasonably afford to contribute to the costs of the procedure.

As with the issue of school fees, the fact that a party is very wealthy will not, in and of itself, necessarily lead to a finding that they should contribute to medical costs such as orthodontics.  That will however, be a relevant matter when looking at whether there was a reasonable expectation that the child have the relevant medical procedure. 

Children over 18 years old

The child support regime generally does not apply to children over the age of 18 years, save for the remainder of their final year in secondary school.  

There are some circumstances however where the Court can order ongoing ‘maintenance’ for children over the age of 18.  These are where maintenance is necessary:

  • To enable a child to complete their education; or

  • Because of a mental or physical disability of the child.

When deciding what maintenance, if any, is proper, the legislation provides for a two-stage approach as follows:

  • The first is to assess what financial support is necessary for the particular child. Here the Court looks at a number of factors including the age of the child, the manner in which the child is, or is expected to be, educated or trained, an special needs of the child, and the income, earning capacity, property and financial resources of the child.

  • The second step is to determine what contribution, if any, should be made by each parent to the necessary financial support identified in the preceding paragraph. At this point, the Court looks at (among other things) the income earning capacity, property and financial resources of each parent, their other necessary commitments, and the costs they incur while the child is living with them.

The overarching principles the Court has regard to when deciding what order, if any, to make for adult child maintenance is to ensure that children have their proper needs met, and that the parents share equitably (fairly) in those costs.

 

Child Support Agreements

Parties can bypass the standard child support formula that CSA normally applies to regulate child support obligations by entering into a private contract known as a child support agreement.  There are broadly two (2) types of child support agreements, being:

  • Limited child support agreement

  • Binding child support agreement

Limited Child Support Agreements

Limited Child Support Agreements provide a degree of flexibility to make child support arrangements without the need to commit to a long term agreement.

In order to enter into a Limited Child Support Agreement:

  • There must be an existing child support assessment in place; and

  • The amount payable pursuant to the agreement must not be less than the child support assessment;

Limited Child Support Agreements can be unilaterally terminated by one party in the following circumstances:

  • after three years, a party may give a written notice to the Registrar of the Child Support Agency terminating the agreement; or

  • if the notional child support assessment changes by more than 15% in circumstances not contemplated by the agreement, a party may give written notice terminating the agreement within 60 days.

It is not necessary for parties to obtain independent legal advice before they enter into a Limited Child Support Agreement.

Binding Child Support Agreements

This type of agreement provides a higher level of certainty and finality in relation to child support than a Limited Child Support Agreement.

Unlike a Limited Child Support Agreement, there is no need for an existing child support assessment to be in place before you can enter into a Binding Child Support Agreement. The amount payable pursuant to the terms of the agreement can be for less than the child support assessment.

A Binding Child Support Agreement will not be valid unless each party to the agreement receives independent legal advice, before signing the agreement, regarding the effect of the agreement on the rights of that party as well as the advantages and disadvantages, at the time that the advice was provided, to the party of making the agreement. 

A party to a Binding Child Support Agreement cannot unilaterally vary or terminate the agreement save with the consent of the other party.

Setting aside agreements

Child support agreements, whether limited or binding, can be set aside in certain circumstances including circumstances wherein:

  • the agreement was obtained by fraud or a failure to disclose material information;

  • undue influence or duress;

  • unconscionable conduct; or

  • in the case of a limited child support agreement:

    • changed circumstances rendering the agreement unjust; or

    • the agreement provides for child support that is not proper or adequate in all the circumstances.

  • in the case of a binding child support agreement, exceptional circumstances.

 

If you have any questions regarding the issues mentioned above, or family law in general, we’re here to help. Please feel free to contact us to discuss your case and make an appointment to meet with us.

 

Telephone
(08) 6117 0460

Email
info@fmdlegal.com.au

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Perth,  WA 6000

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St Georges Tce
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