How is Child Support calculated in Australia?

In Australia, the issue of financial support for children is generally handled administratively by Services Australia (Child Support), not the Family Court.¹

The amount payable is determined by a complex formula that attempts to balance the costs of raising children with the capacity of both parents to pay.

The 8-Step Formula

While the exact math is complex, the assessment relies on three main variables:

1. Both Parents’ Incomes: It uses your “Adjusted Taxable Income” (including fringe benefits and super contributions). A self-support amount is deducted first.
2. Care Percentage: The number of nights the child spends with each parent per year.
   • < 14% care (Regular Care): No impact on cost.
   • 14% - 34% care (Shared Care): Reduces payment.
3. Cost of Children: Based on Australian research into how much parents spend on kids at different income levels and ages.

You can use the Online Estimator on the Services Australia website to get a rough figure.

Private Agreements: Opting Out of the Formula

Parents often find the formula too rigid (e.g., it doesn’t cover private school fees or orthodontics). You can sign a private agreement instead:

1. Limited Child Support Agreement

• Lasts for up to 3 years.
• Requirements: The agreed amount must be equal to or higher than the formula assessment.
• Does not require legal advice.

2. Binding Child Support Agreement

• Can last until the child turns 18.
• Can be for any amount (even less than the formula).
• Mandatory Legal Advice: Both parents must have independent legal advice and a certificate signed by a lawyer.²
• Very difficult to change once signed.

Can I Pay School Fees Instead?

Yes, but only if agreed. Only specific “prescribed non-agency payments” (like school fees or medical costs) can be credited against your child support liability, usually up to a limit of 30%, unless a private agreement says otherwise.³

Related Family Law Topics

• Parenting orders explained
• De facto relationship rights
• Family Law Practice Area

Binding Agreements

If you want certainty regarding school fees and long-term support, a Binding Child Support Agreement is the gold standard. Bell & Senior can draft and certify these agreements for you.

Need a private agreement? Contact our team to discuss your options. Call (07) 5532 8777.