The Legal Practitioner's Guide

4.4.3(d) Setting a parent's child support income

An order or agreement can set or vary a parent's child support income. This is achieved in the same way as detailed previously in the adjusted taxable income clauses (4.4.3(b)) by substituting 'child support income' for 'adjusted taxable income'.

This type of clause may be appropriate if the formula assessment does not accurately reflect current income(s). Such clauses allow for care changes to be reflected.

A parent's child support income reflects the resources that they have available to support the child support children, after the self-support amount and any relevant dependant child amount has been deducted (note that this is different from the definition of 'child support income' prior to 1 July 2008). If a parent's resources are not accurately reflected in the assessment, it would normally be more appropriate to set or vary the parent's Adjusted Taxable Income (see above), unless there is a specific desire to adjust the calculation of the resources available to support the children, rather than of the parent's total resources.

Note: by setting the child support income, a parent cannot lodge estimates because this creates an income amount order (see above) and the parent's self-support amount or relevant dependant amount cannot be adjusted if their other circumstances or care responsibilities change.

4.4.3(e) Varying the child support percentage

An order or agreement can adjust the amount payable by increasing or decreasing a parent's child support percentage. However, due to the different formula in effect from 1 July 2008, varying the child support percentage after this time does not have a similar effect to varying the child support percentage before this date. After 1 July 2008, a parent's child support percentage is the share of the cost that the parent must transfer to the other parent (see Chapter 1.2).

It should also be noted that varying the child support percentage does not increase the overall cost of the children. Where, for example, the parents agree that the special needs of the child(ren) require that a parent contribute a higher level of child support than is normally payable under the formula, it would be easier and more transparent to adjust another formula component, such as changing the cost of the child to reflect this (see next page).

It should also be noted that varying one parent's child support percentage may have anomalous effects, depending on the circumstances of the other parent. It changes the share of the cost that one parent must transfer to the other, but in a somewhat artificial way. A parent's child support percentage is the result of subtracting the parent's cost percentage (share of costs that they bear directly, if any) from their income percentage (their share of the combined resources). It would normally be easier and more transparent to adjust the parents' income percentages and/or cost percentages, leaving the child support percentages to be calculated automatically from these new figures. You should contact CSA for further information if you are considering inserting such a clause.

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