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Child Support and Adult Child Maintenance
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Areas of Expertise > Child Support and
Adult Child Maintenance |
Under the Child Support (Assessment) Act 1989 every parent has a primary duty to
maintain their children. Child support is assessed and collected by the Child Support
Agency (CSA) which is part of the Australian Government Department of Human Services.
Usually the parent with whom the child lives applies to the Child Support Agency
for an assessment of the amount of child support payable by the other parent. The
CSA makes as assessment of child support by applying a formula to both parents'
gross annual income, considering primarily the age of the child and the costs of
caring for the child; the amount of time the child spends with each parent and whether
the payer has an obligation to maintain a child from another relationship.
The child support website is at www.csa.gov.au.
On the website parents can use the estimator to see the amount of child support
they ought to pay or receive. The website also provides a calculator for parents
to estimate any Family Assistance Office payments they might receive.
Departing from Child Support assessments
It is possible for either party to apply to "depart from the child support assessment
in special circumstances". For example, the parent liable to pay child support may
encounter substantial or unusual expense in spending time with the child because
they live a considerable distance away from the other parent. In such a case, modification
to the child support assessment based on the usual formula can be made to take these
costs into account. Another example is where the parent liable to pay child support
has the ability to arrange their affairs so that their income remains below the
minimum self support threshold but they have substantial assets or access to funds
which they are not obliged under taxation law to declare as income. Here the child
support assessment based on the usual formula can be departed from to ensure that
the financial burden of supporting the child is more equitably shared between both
parents.
Once an assessment has been made, payments are made to the CSA and then forwarded
to the other parent on a monthly basis. Inevitably there is some delay between the
time of the application being made and the date of the first payment.
Except in limited circumstances, parents are not obliged to use the CSA and are
perfectly entitled to reach their own arrangements regarding child support.
Child Support Agreements
If the parents agree, a Child Support Agreement can be entered into on a private
basis between the parties. This agreement can be registered with the CSA or the
parties can elect to comply with the agreement privately. Once registered, the CSA
can be utilised to collect money due under the Agreement. If there is an existing
child support assessment by CSA, a later Child Support Agreement will replace that
assessment.
The level of child support payable is reviewed at the end of each financial year.
People entering into a Child Support Agreement often include provision for regular
review of the Agreement, although that is not compulsory.
As and from 1 July 2008, there are two types of child support agreements:
1. Limited Child Support Agreements; and
2. Binding Child Support Agreements.
Limited Child Support Agreements operate only for 3 years. A Limited Child Support
Agreement requires a child support assessment to have been issued. After the expiration
of three years, the parties can renegotiate another agreement if they wish.
A Binding Child Support Agreement is an opting out of the Child Support Act and
can only be altered by another agreement, terminating the agreement, or by being
set aside by the Court in circumstances where there has been an event such as fraud,
duress or lack of disclosure. Binding Child Support Agreements can only be entered
into where both parents are legally represented and their respective lawyers sign
a certificate certifying, amongst other things, that they had given advice to their
client on the advantages or disadvantages of entering into the Agreement.
Adult Child Maintenance
A parent or child may make an application to the Court for adult child maintenance
in specific circumstances where they can show that despite the child being over
19, maintenance is required to enable the child to complete their education, or
because of a mental or physical disability.
Family Lawyers Rockhampton
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