Child Support Payments

The Child Support (Assessment) Act 1989 (Cth) imposes a duty on parents to maintain child support payments. Child support is also known as child maintenance and is an ongoing payment made by one parent, guardian, or carer to another to aid in caring for and supporting their child.

How is Child Support Calculated?

Child support payments are calculated using the Basic 8 Step Formula. Although it is called the ‘basic formula’, the calculation of child support payable by the parents of the child or children can be quite complex.

The calculations of child support payable by the parents of the child or children will be based on the following principles:

• Each parent is responsible for meeting the costs of children.
• Costs depend on the number and ages of children.
• Higher income parents are required to contribute more.
• A parent gets credit for covering expenses while caring for the child or children.
• A parent pay support when his or her percentage of income exceeds the percentage of his or her cost.

In the final calculation, child support is calculated as the costs of the children multiplied by the difference between the percentage of the parent’s income (share of combined income) and the percentage of his or her cost (credit for time with the child or children).

The parent is required to pay for child support if the result is positive or receive support if the result is negative. If you can prove that the care you provide for your child or children is 65% and above, it is highly like you will not require to pay child support.

However, as every individuals’ circumstances are different, it is in the best interest of the parties to seek advice before proceeding with any child support agreement.

If you would like to have a Child Support Agreement drafted or find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an online interview.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.