In Australia, child support is a payment made by one or both parents to the other after divorce, used to help cover the costs of caring for the children. Child support generally needs to be paid until the child turns 18.
What is child support?
Child Support refers to the reasonable and necessary financial support every child is entitled to receive from their parents, until the child reaches the legal age, marries, enlists in military service, or becomes self-supporting. If the parents separate or divorce, both parents still have an obligation to support their children.
There are two main ways to arrange child support:
- The parents can reach an agreement on child support
- Apply to the Department of Human Services (Child Support) (hereafter DHS) for a child support assessment
In a previous article, How Do You Sign a Child Support Agreement in Australia?, we covered the first option — the child support agreement. This article focuses on the second option: the child support assessment.
Key terminology for child support
- Child Support Period: the child support assessment period. One period runs from the most recent tax return to the next year’s tax return. Because there is a 3-month buffer at the end of the financial year to lodge a tax return, a child support period can be up to 15 months long. The child support period ensures that the parent with a support obligation pays an amount calculated based on accurate financial-year income.
- Self-support Amount: the amount of income the parent with a support obligation keeps to support themselves. This figure is linked to the Australian Bureau of Statistics’ Male Total Average Weekly Earnings. ‣Child Support Income Amount: the portion of the supporting parent’s income available for child support after deducting the self-support amount.
How child support is calculated
Calculating child support is fairly complex. DHS uses a relatively objective method — a formula to calculate how much each party should pay. Factors considered in the child support formula include:
- The number of children
- The age of the children
- How much you need to support yourself
- The income of both parents
- The proportion of care each parent provides to the children, etc.
The basic eight-step child support formula
The basic child support formula applies when: there are no other carers besides the two parents, and neither parent has any other child support obligations to pay.
Step 1: Calculate each parent’s child support income
Your child support income = your adjusted taxable income – your self-support amount – the amount needed to support any relevant dependent child* (dependent allowance)
*A relevant dependent child is any other child in your care, for example your biological children or stepchildren you have a legal duty to support.
Step 2: Calculate both parents’ combined income
In this step, you add the child support income of both parents together.
Step 3: Calculate each parent’s share of income
Income share = one party’s income / the combined income of both parties
Step 4: Calculate each party’s care percentage
The care percentage reflects the amount of time each parent provides care for the child.
Both parents can agree on the care percentage. If they cannot reach agreement, DHS will use its own calculation method
and determine the care percentages for both parties as a percentage.
Evidence DHS may ask for includes:
- A diary or calendar showing when you care for the children
- Court orders or parenting plans, with proof that you are acting in accordance with them
- Documents showing the children’s attendance at daycare, school or other regular activities
- Records of medical appointments or other services
- Flight bookings or passports showing travel dates
- Statements from other people, etc.
Step 5: Calculate each carer’s cost percentage
In this step, the care percentage from the previous step is converted into a cost percentage using the table below.
| Care percentage | Cost percentage |
|---|---|
| 0-13% | 0% |
| 14-34% | 24% |
| 35-47% | 25% + for each 1% increase in care percentage above 35%, add 2% to the cost percentage |
| 48-52% | 50% |
| 53-65% | 51% + for each 1% increase in care percentage above 35%, add 2% to the cost percentage |
| 66-86% | 76% |
| 87-100% | 100% |
Step 6: Calculate each party’s child support percentage
Child support percentage = income share (Step 3) – cost percentage (Step 5)
If the result is a negative number, that party is the one receiving child support.
If the result is a positive number, that party is the one paying child support.
The positive result is used in Steps 7 and 8.
Step 7: Calculate the costs of children
The costs of children are determined by the parents’ income, the number of children, and the age of the children. The costs are calculated using the following tables:
Children aged 12 and under
|
Parents’ combined income (Step 2) |
Cost for 1 child |
Cost for 2 children |
Cost for 3 children |
|---|---|---|---|
|
$0-$41,262 |
17c for each $1 |
24c for each $1 |
27c for each $1 |
|
$41,262-$82,524 |
$7,015 plus 15c for each $1 over $41,262 |
$9,909 plus 23c for each $1 over $41,262 |
$11,141 plus 26c for each $1 over $41,262 |
|
$82,525-$123,786 |
$13,204 plus 12c for each $1 over $82,524 |
$19,393 plus 20c for each $1 over $82,524 |
$21,869 plus 25c for each $1 over $82,524 |
|
$123,787-$165,048 |
$18,155 plus 10c for each $1 over $123,786 |
$27,645 plus 18c for each $1 over $123,786 |
$32,185 plus 24c for each $1 over $123,786 |
|
$165,049-$206,310 |
$22,281 plus 7c for each $1 over $165,048 |
$35,072 plus 10c for each $1 over $165,048 |
$42,088 plus 18c for each $1 over $165,048 |
|
Income over $206,310 Costs don’t go up past this cap |
$25,169 |
$39,198 |
$49,515 |
Children aged 13 and over
|
Parents’ combined income (Step 2) |
Cost for 1 child |
Cost for 2 children |
Cost for 3 children |
|---|---|---|---|
|
$0 to $41,262 |
23c for each $1 |
29c for each $1 |
32cfor each $1 |
|
$41,263 to $82,524 |
$9,490 plus 22c for each $1 over $41,262 |
$11,966 plus 28c for each $1 over $41,262 |
$13,204 plus 31c for each $1 over $41,262 |
|
$82,525 to $123,786 |
$18,568 plus 12c for each $1 over $82,524 |
$23,519 plus 20c for each $1 over $82,524 |
$25,995 plus 30c for each $1 over $82,524 |
|
$123,787 to $165,048 |
$23,519 plus 10c for each $1 over $123,786 |
$33,835 plus 20c for each $1 over $123,786 |
$38,374 plus 29c for each $1 over $123,786 |
|
$165,049 to $206,310 |
$27,645 plus 9c for each $1 over $165,048 |
$42,087 plus 13c for each $1 over $165,048 |
$50,340 plus 20c for each $1 over $165,048 |
|
Income over $206,310 Costs don’t go up past this cap |
$31,359 |
$47,451 |
$58,592 |
2 or more children across different age groups
|
Parents’ combined income (Step 2) |
Cost for 2 children |
Cost for 3 children |
|---|---|---|
|
$0 to $41,262 |
26.5c for each $1 |
29.5c for each $1 |
|
$41,263 to $82,524 |
$10,934 plus 25.5c for each $1 over $41,262 |
$12,172 plus 28.5c for each $1 over $41,262 |
|
$82,525 to $123,786 |
$21,456 plus 22.5c for each $1 over $82,524 |
$23,932 plus 27.5c for each $1 over $82,524 |
|
$123,787 to $165,048 |
$30,740 plus 19c for each $1 over $123,786 |
$35,279 plus 26.5c for each $1 over $123,786 |
|
$165,049 to $206,310 |
$38,580 plus 19c for each $1 over $165,048 |
$46,213 plus 19c for each $1 over $165,048 |
|
Income over $206,310 Costs don’t go up past this cap |
$43,325 |
$54,053 |
Step 8: Calculate the child support amount
Child support = the positive child support percentage (Step 6) x costs of children (Step 7)
The amount calculated in this step is what one party should pay the other as child support.
Final thoughts
The formula above is the basic formula and applies when there are no other carers besides the two parents, and neither parent has other child support obligations to pay. If there are other carers besides the two parents, or if the parents have other marriages or relationships that have been assessed for child
support, a different formula will need to be used. If you have questions, please get in touch with our specialist lawyers.
We have a series of articles explaining child support in Australia. You are welcome to read them:
A Guide to Child Support Agreements in Australia
After divorce, do step-parents still have a duty to care for the child?
