Relationship breakdowns are always tough — made harder when parents need to make decisions for their children in the midst of emotional turmoil. Duffy & Simon can help you navigate this stressful, complicated process to ensure you receive a fair and equitable result for you and your children. It’s reasonable to have many questions about child support, like “How is child support calculated?”, and this is where Duffy & Simon can provide much-needed clarity.
The Family Law Act of 1975 empowers the Family Court of Australia to make orders for the care and welfare of children, which is particularly relevant for child custody arrangements. In regard to child support payments, the former Child Support Agency (CSA) has been superseded by the Child Support program of Services Australia. The family lawyers at Duffy & Simon have extensive experience with both, giving you peace of mind when you need it most. In this article, we’ll walk you through the calculations and obligations involved in child support payments.
The Basis for Child Support Calculations
In Australia, the best interest of the child is always the primary concern of the courts and services. For this reason, when you separate from your child’s parent, you may be obligated to pay child support in order to provide for your child/children. Whether you will pay or receive child support will be assessed based on each parent’s income, how much time each parent cares for the child, and the child’s age.
How Does My Child’s Age Affect Child Support?
The older your child is, the more child support you may be obligated to pay. Under Australian law, children are considered more expensive to care for as they get older. With this in mind, child support is broken down into two categories: children aged 12 and under, and children aged 13 and over.
How Does Income Affect Child Support?
How much you earn, how much the other parent earns, and how much your combined income is, all affect child support. Child Support services input both your incomes into a basic formula:
- First, they’ll calculate each parent’s ‘child support income’.
- Secondly, they’ll add both parents’ incomes to work out a combined child support income.
- Lastly, they’ll work out each parent’s income percentage by dividing each income by the combined total.
This income percentage will be used in later calculations to decide how much child support should be paid.
For example, if Ken earns $150,000 and Barbie earns $100,000, their combined child support income is $250,000. Ken’s income percentage is 60% and Barbie’s income percentage is 40%.
Income Types Considered in Calculations
Many parents wonder, “Are bonuses calculated in child support?” or “Is child support calculated on gross or net income?”. The answer is straightforward: all of your taxable (gross) income is considered in child support calculations, including your salary, bonuses, overtime, and commissions. It also includes business income, dividends and investments, bank interest, capital gains, and some scholarships. Lump sum payments are calculated, too, including death benefits, compensation and insurance payouts, and superannuation that is released early.
Can My Spouse’s Income Be Used to Calculate Child Support?
No, your spouse’s income cannot be used to calculate child support. Child support is only calculated based on the two parents’ incomes and does not include new spouses or partners.
How Care Is Considered in Calculations
The final consideration for child support calculation is the percentage of care each parent provides. Based on the number of nights per year you have care, you will be assigned a care percentage that is directly related to a cost percentage
The table below breaks down exactly how this works, showing the relationship between nights of care and the resulting cost obligations:
Number of nights a year | Number of nights a fortnight | Care percentage | Cost percentage |
---|---|---|---|
0-51 | 1 | 0-13% | 0% |
52-127 | 2-4 | 14-34% | 24% |
128-175 | 5-6 | 35-47% | 25% plus 2% for every percentage point over 35% of care |
176-189 | 7 | 48-52% | 50% |
190-237 | 8-9 | 53-65% | 51% plus 2% for every percentage point over 53% of care |
238-313 | 10-12 | 66-86% | 76% |
314-365 | 13-14 | 87-100% | 100% |
For example, as per custody arrangements, Ken cares for their child each Wednesday night and every second weekend; as he cares for his child 4 nights in a fortnight, his care percentage is 34% and therefore his cost percentage is 24%. Barbie cares for their child for the other 10 nights in a fortnight, meaning her care percentage is 66% and therefore her cost percentage is 76%.
How Child Support Is Calculated?
Once you have an income percentage and a cost percentage, Child Support services are able to complete the basic calculations. They will subtract the cost percentage from the income percentage for each parent. This becomes known as the ‘child support percentage’.
If your child support percentage is a negative number, it means your share of costs are above the amount of care you provide, and you have been assessed to re cceive child support.
If your child support percentage is a positive number, it means you are not meeting your share of costs directly through care, and have been assessed to pay child support.
For example, Ken’s income percentage is 60% and his cost percentage is 24%, meaning Ken’s child support percentage is 36%.
Barbie’s income percentage is 40% and her cost percentage is 76%, meaning her child support percentage is -36%. This means that Ken will pay child support and Barbie will receive child support.
Child Support services work out the total amount of child support payable by multiplying the positive child support percentage by the costs of the child.
The costs of the child are assessed as follows:
Parents combined child support income | Cost of one child aged 12 & under | Cost of one child aged 13 & older |
---|---|---|
$0 to $44,762 | 17c for each $1 | 23c for each $1 |
$44,763 to $89,523 | $7,610 plus 15c for each $1 over $44,762 | $10,295 plus 22c for each $1 over $44,762 |
$89,524 to $134,285 | $14,324 plus 12c for each $1 over $89,523 | $20,142 plus 12c for each $1 over $89,523 |
$134,286 to $179,046 | $19,695 plus 10c for each $1 over $134,285 | $25,513 plus 10c for each $1 over $134,285 |
$179,047 to $223,808 | $24,171 plus 7c for each $1 over $179,046 | $29,989 plus 9c for each $1 over $179,046 |
Income over $223,808 | $27,304 | $34,018 |
For example, Ken and Barbie’s combined child support income is $250,000 and they share a child under 12, meaning their child is assessed to cost $27,304. As Ken’s child support percentage is 34%, he is obligated to pay 34% of $27,304, which equals $9,283.
The full Costs of Children table can be found on the Services Australia website here.
Managing Child Support Obligations
Child support obligations in Australia require careful attention to payment schedules and ongoing compliance. Parents must promptly report any changes in circumstances — including modifications to contact details, care arrangements, or income — through the Child Support online account linked to myGov or the Express Plus Child Support mobile app. Services Australia’s Child Support program provides various payment options to ensure timely transfers between parents.
Where to Seek Professional Guidance
Navigating child support calculations and obligations can be complex, and seeking professional legal advice can help ensure your rights and responsibilities are properly understood and managed. Duffy & Simon has extensive experience in child support matters, from initial assessments to complex payment disputes.
We can help you understand your obligations, negotiate modifications when circumstances change, and ensure compliance with Australian family law requirements. The team at Duffy & Simon is committed to helping you achieve the best possible outcome for you and your children.