Calculation and Payment of Child Support
Calculation and Payment of Child Support
In this issue, Lawyer Ren will discuss matters relating to child support.
First, we must understand that child support and spousal maintenance are not the same. The former covers the costs for parents to raise their children, while the latter covers support between spouses—legally, they are entirely separate issues.
In Australia, the calculation, collection, and enforcement of child support are governed by the federal government under legislation first enacted in 1988. The purpose of child support is to ensure that when parents separate, their minor children receive financial assistance from one parent, and that the parent who cares for the children after separation does not bear the full financial burden alone.
The child support system is quite complex. In simple terms, the government uses a specially designed formula that takes into account all relevant factors when calculating child support, determining which parent must pay and how much. Applications for child support can now be made entirely online.
Before applying, the applicant, the person assessed, and the children must all meet certain criteria. Notably, in some special circumstances, not only the biological parents but also individuals who are caring for the children (even if not the biological parent) may apply for support.
Generally, as long as the parents and the children all reside in Australia, either parent can lodge a child support application.
This may sound obvious, but before accepting an application the government must verify that the children named are indeed the biological children of the parents. This requirement has tripped up many applicants whose children were born overseas or in countries whose documentation is not directly recognised by the Australian government (for example, many Asian countries). When the government or the other parent does not recognise the child as biological, the application is rejected, and the applicant must prove parentage in family court before proceeding. In one case handled by Lawyer Ren, a child’s father, in order to avoid paying support, refused to sign any document confirming paternity or submit to government verification. Ultimately, they ended up in costly court proceedings to prove a parent–child relationship that should never have been in doubt.
Once the prerequisites are met, the child support formula is applied. Over the past 30 years the system has been refined but has grown increasingly intricate. Factors included in the formula can include:
1. The parents’ taxable incomes as recorded by the Australian Taxation Office;
2. The government’s published average weekly earnings for men (annualised);
3. The age and number of children;
4. The number of children each parent has with other partners;
5. The government’s annual child support guidelines;
6. The percentage of care each parent provides;
…and so on.
Because of the system’s uniformity, the formula does not account for high private school fees or other significant educational expenses, nor does it specify who should directly pay such costs. Simply because one parent has the means does not mean the government will require them to pay all expenses directly.
After the calculation is complete, the applicant may request that the government collect the payable support from the other parent. If the other parent refuses or unreasonably evades payment, the government can enforce collection through measures such as wage garnishment, intercepting tax refunds, and, in extreme cases, travel restrictions.
While proofreading this issue, Lawyer Ren noted that this topic is indeed somewhat arcane. We hope that after reading this article, you have gained a deeper understanding of this complex child support system.
Because of the system’s complexity and unpredictability, more and more parents now choose to use a private child support agreement—which we will discuss in the next issue—to set their own terms for calculation and payment.
See you next issue.
Editor’s Note:
Mr Ren is originally from Guangzhou, China and has practised for many years. He is now the Principal Lawyer at LJR Legal.
Embracing modern technology, speaking the languages of our Chinese community, and serving as your dedicated legal advisor has been Mr Ren’s mission throughout his career.
As a full-service practitioner, in addition to his deep expertise in Family Law, Mr Ren also specialises in:
- Contract Law
- Intellectual Property Law & Trademark Registration
- Commercial Litigation
- Corporations Law & Corporate Governance/Compliance
- Debt Collection
- Creditor’s Bankruptcy Petition & Corporate Liquidation
- Employment Law
- Immigration Law & representation in the Administrative Appeals Tribunal and Federal Circuit Court of Australia
- Criminal Law
- Wills & Estate Planning
- Business & Property Conveyancing
- …and many more.
Address: LJR Legal, Suite 46/328 Albany Hwy, Victoria Park WA 6100
Phone: 08 6163 3699
Emergency (24 hr): 0430 023 464
Email: info@ljrlegal.com.au
WeChat: Ljrlegal_au
WhatsApp: +61 430 023 464
Line: +61 430 023 464 (Leo Ren Lawyer)
Languages: Cantonese, Mandarin, English
Disclaimer: This column provides general legal discussion only. The text, images, and any content herein do not constitute legal advice, nor does Mr Ren intend by this column to advise its readers. If you require advice tailored to your circumstances, please arrange a confidential one-on-one consultation with Mr Ren. Neither this column, the magazine, nor Mr Ren accepts liability for any loss arising from anyone’s use of its content.