Child support in Australia is governed by the Child Support (Assessment) Act 1989, the Child Support (Registration and Collection) Act 1988 and the Family Law Act 1975 (Cth).
These Acts establish a system of administrative assessment and collection of child support payments, based on a formula that considers various factors, such as the income and care arrangements of both parents, the number and age of the children, and the costs of raising them.
The Child Support Agency is responsible for administering these Acts and providing services to parents, such as calculating, registering, and enforcing child support liabilities. However, parents are not limited to the administrative processes of the Child Support Agency. By using child support agreements, parents can tailor solutions that suit their needs and preferences, as long as they meet certain requirements.
Binding child support agreement
A binding child support agreement is a legally enforceable contract that parents or carers can make to determine the amount and method of child support payments for their children. Unlike a limited child support agreement, a binding child support agreement requires both parties to obtain independent legal advice before signing it, and it can be made with or without a child support assessment in place.
A binding child support agreement can specify any amount of child support, as long as both parties agree to it, and it can include both cash and non-cash payments, such as payment for school fees and health insurance.
A binding child support agreement can only be terminated by a party if the parties make a new agreement, apply to a Court for an Order, or in certain limited circumstances, such as the death of a child or a party. A binding child support agreement is intended to provide certainty and finality to the parties and to reduce the involvement of the Child Support Agency in their child support matters.
Limited child support agreement
A limited child support agreement is a type of formal agreement that parents or carers can make about the amount and method of child support payments for their children. Unlike a binding child support agreement, a limited child support agreement does not require the parties to obtain independent legal advice before entering it. However, there must be a child support assessment in place and the annual rate payable under the agreement must be equal to or more than the annual rate of child support payable under the assessment. A limited child support agreement can include both cash and non-cash payments, such as the payment of school fees and health insurance. A limited child support agreement can be terminated by either party if there is a significant change in circumstances, or by making a new agreement or applying to a Court for an Order.
Ready to take control?
Take the first step towards securing your financial future by scheduling a consultation with our experienced family lawyer. Gain personalised advice tailored to your unique situation by contacting us via email at hello@powellfamilylaw.com.au or by phone on 07 3188 1791. Don’t wait—empower yourself with the knowledge and guidance you need today.
