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.