Separated parents are often faced with the question of how to share the costs of raising children of the relationship.
In some instances, parents can reach agreement to share children’s costs. That agreement might provide for each parent to meet day-to-day expenses in their own care, and share larger expenses (such as medical or dentist appointments, private school fees or extra-curricular activities).
Parents can also agree to meet these costs in proportion to their respective incomes, for example a higher income earning parent may agree to meet a greater percentage of the children’s expenses.
Where you agree, you can have an informal agreement (which is less enforceable) or you can enter into a Binding Child Support Agreement or Limited Child Support Agreement to formalise that arrangement.
Generally if parents cannot reach agreement, one parent can apply for an ‘administrative child support assessment’, which is an amount determined by Australian law. An administrative assessment is based on a formula which includes each parent’s income, the relevant child’s care arrangements, the child’s age and any other child support assessment (i.e. if you have children from another relationship).
You can also apply to vary your child support assessment under special circumstances, for example some of the reasons include:
· if the costs of raising your child are impacted by high expenses to spend time with or communicate with your child, such as travel expenses;
if a child has special needs;
if a child is attending a private school and both parents intended that the child would attend a private school; and
if you have significant other expenses such as high medical needs which impact your ability to support your child.
The child support scheme in Australia is managed by Services Australia. Services Australia can enforce overdue child support payments, or management repayments if an assessment changes and a parent has overpaid.
Child support can be paid through ‘private collect’ or self management, which does not involve Services Australia in the payment process. Alternatively, child support can be collected through Services Australia via a number of different payment methods including through debit or credit card, employer deductions, through your bank or otherwise.
A number of significant reforms to the child support scheme were announced in the 2026-27 Federal Budget, with a view to addressing non-compliance and protecting parents from financial abuse. It was announced that $183 million would be invested in the child support system.
Some of those reforms include as follows:
Online support and guidance for parents entering the child support system, including assistance about best ‘collection’ method;
Improved ways to change your collection method;
Expanding the use of ‘employer withholding’ as a default payment method;
Greater international travel restrictions on parents who owe significant child support debts (by way of Departure Prohibition Orders), involving a need to agree to payment arrangements prior to travelling overseas;
Stronger powers for Services Australia to collect unpaid child support from private collection arrangements where those parents shift to the Agency Collect system;
Income data sharing between Services Australia and the ATO to increase the accuracy of income estimates upon lodgment of tax returns; and
Additional funding to support the Australian Taxation Office to prosecute parents who repeatedly fail to submit their tax returns (thereby impacting the amount of child support they pay).
It is expected that the first legislative amendments will be introduced to parliament in 2026.
Child support is an important but technical area of law. If you are seeking further information or advice about the costs of your child and how these can be shared, or if you are seeking to challenge a child support assessment due to special circumstances, or you would like to enter into a child support agreement, we recommend that you obtain legal advice from a specialist family lawyer.
Contact R+M LAW today to arrange an appointment by email at info@rmfamilylaw.com.au or 02 6225 7040 or get started now online with one of our experienced family lawyers.
