Child Support
Which Children Are Covered?
Children
of all relationships that have broken up since October 1989 are covered
by the Child Support Scheme. Some other children are covered as well.
By the year 2007 all children in Australia will be covered by the
Scheme.
The Formula
The Scheme applies a formula for the
purposes of working out how much a liable parent needs to pay to the
carer for the support of children. Once a carer applies for child
support from the Child Support Agency an assessment is issued using the
formula. The
Child Support Agency web
site has further information regarding the formula and a basic child
support calculator. The formula will change on 1 July 2008.
Child Support Agreements
The Child Support Agency encourages people to reach their own
agreements. Agreements can include different forms of child support
(such as payment of school fees, health insurance, or mortgage
repayments) as well as cash payments. A child support assessment can be
changed by lodging an Agreement.
If an agreement is reached it can be registered with the Child Support Agency.
There are limitations on the extent to which a carer who is in
receipt of government benefits can enter into an agreement to receive
child support other than by assessed periodic payments. If you are
considering an agreement along those lines, and either you or your
former partner are in receipt of government benefits, it will be
important for you to take legal advice before entering into the
agreement.
It
is always best to check with a family lawyer before finalising a Child
Support Agreement particularly if it is being done as part of an
overall resolution of financial matters between you and your former
partner.
If couples agree, they can change the terms of a Child Support
Agreement at any time by making a further agreement. If they cannot
agree, then the terms of the Child Support Agreement remain binding
until a Court changes the terms of the agreement.
Changes to the law governing child support agreements are expected to come into effect on 1 January 2008.
Reviewing the Formula
The Child Support formula gives most parents an assessment that is
just and equitable. There are however circumstances where the
application of the Child Support formula may not produce an assessment
that is just and equitable.
In those cases an application can be made to a Senior Case Officer
(SCO) for an independent review of the assessment. The Senior Case
Officer will make a determination as to whether or not there are
special circumstances which would justify a change from the assessment.
While a lawyer cannot be present at the review hearing, a Lawyer can
assist in the preparation of material and submissions for that hearing.
If a party is not happy with the result received from a Senior Case
Officer then he or she may lodge an objection to the decision with the
Child Support Agency. If either party is not satisfied with the outcome
of the objection, they are entitled to a rehearing by the Court. A
Lawyer can assist at that rehearing.
If there are other matters already before the Court when the dispute
regarding child support arises, it may not be necessary to go to a
Senior Case Officer or to object to the decision before having the
matter heard by the Court. There are provisions which allow all
outstanding issues between two parties to be determined at the one time
by a Court to avoid delay and expense.
Changes to the Child Support Scheme
In February 2006 the Government announced its intention to
significantly reform the child support scheme in three stages
commencing from 1 July 2006 through to 1 July 2008.
Before entering into any agreement in relation to child support you
should ensure that you have up-to-date information and legal
advice.