The Legal Practitioner's Guide

4.4.2 (b) Indexing the amount payable

If an order or agreement that sets the annual rate of child support is expressed to last for a number of years, the value of that child support may decrease over time. It may be appropriate to index the amount payable, or increase the amount payable each year, so that the amount of child support retains its value. The clauses below can be used in any agreement or order that sets the periodic rate of child support.

(i) Consumer price index

The annual rate of child support payable by [Parent A's name] to [Parent B's name] will increase from [day and month] each year, in accordance with variations in the consumer price index for [specify the relevant quarter, the capital city or weighted average].

(ii) Index by a fixed percentage

The annual rate of child support payable by [Parent A's name] to [Parent B's name] will increase by x% from [day and month] each year.

(iii) Increase by a set dollar amount

The rate of child support payable by [Parent A's name] to [Parent B's name] will increase by [$x per period] from [day and month] each year.

Tips and problems

What if the cost of living decreases?
The suggested terms above provide only for an increase in the rate of child support. If the cost of living decreases, the rate of child support will remain the same. If it is intended that child support will reduce if the cost of living reduces, replace the word 'increase' in the suggested Consumer Price Index clause with the words 'be adjusted' or 'increase or decrease'.

Increasing by a set dollar amount
The amount of child support may be indexed by a set dollar amount, at specified intervals.

To avoid confusion, the increase should be expressed with reference to the period used to set the original rate of child support – for example, if the agreement sets a monthly rate, the amount could increase by $50/month from 1 January each year. See draft clause above.

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