The Legal Practitioner's Guide

5.2 (d) Payments to third parties plus a fixed periodic amount

An order or agreement can provide for the payment of child support in the form of payments to third parties, combined with a fixed periodic amount.

Court order

• That pursuant to section 117 of the Child Support (Assessment) Act 1989 there be a departure from the administrative assessment of child support payable by [Parent A's name] to [Parent B's name] for the child(ren) [child(ren)'s names] as follows:

• For the period from [start date] to [end date] the annual rate of child support be set at $x per child.

• That pursuant to section 124 of the Child Support (Assessment) Act 1989 [Parent A's name] provide child support to [Parent B's name] for the child(ren) [children's names] by way of payment of all [school fees] for [child(ren)'s names] while the said children continue to attend [name of school]. Payment is to commence with the 20XX school year.

• The child support ordered to be paid by way of [school fees] is to reduce the amount payable under the administrative assessment of child support. For the period from [start date] to [end date] the [school fees] are to reduce the annual rate of child support by [x% (100% or some other specified percentage)].

OR

• The child support ordered to be paid by way of [school fees] is to reduce the amount payable under the administrative assessment of child support. For the period from [start date] to [end date], the [school fees] are to have an annual value of $x and the annual rate of child support for the days in that period is to be reduced by that amount ($x).

OR

• The child support ordered to be paid by way of [school fees] is to reduce the amount payable under the administrative assessment of child support. For the 20XX calendar year the [school fees] are to have an annual value of $y and the annual rate of child support for the days in that year is to be reduced by that amount ($y).

Child support agreement

• [Parent A's name] and [Parent B's name] agree that [Parent A's name] will pay child support to [Parent B's name] of $x per month for [child 1's name] and $y per month for [child 2's name] for the period from [start date] to [end date].

• [Parent A's name] will provide child support to [Parent B's name] for the child(ren) [child(ren)'s names] by paying [school fees] for [child(ren)'s names] while they continue to attend [name of school]. Payment is to commence with the 20XX school year.

• The child support that [Parent A's name] will pay by way of [school fees] is to reduce the amount payable under the administrative assessment of child support. For the period from [start date] to [end date] the [school fees] are to reduce the annual rate of child support for that period by [x% (100% or some other specified percentage)].

OR

• The child support that [Parent A's name] will pay by way of [school fees] is to reduce the amount payable under the administrative assessment of child support. For the 20XX calendar year the [school fees] are to have an annual value of $y and the annual rate of child support for the days in that year is to be reduced by that amount ($y).

Tips and problems

Reduction of child support payable clauses
Orders and agreements for child support payments to be made to third parties must specify whether those payments are to reduce the administrative assessment and, if so, at what rate, in either dollar or percentage terms (sections 84(1)(d) and 125(3). If the order or agreement does not specify this, it will be assumed that the payments are in addition to the administrative assessment. Note also that CSA cannot enforce payments to third parties.

When the payee receives Family Tax Benefit
Generally, where the payee receives Family Tax Benefit (Part A) (FTB) at more than the base rate, and the parents make an agreement about the child support to be paid, then the payee's FTB will be assessed on the notional amount of child support that would have been paid if the agreement had not been made (see chapter 2.3).

The court must consider social security implications before it makes the order (section 123A). The Family Assistance Office can advise the payee how a child support agreement will affect his or her Family Tax Benefit entitlement. More information is available from or 136 150 or www.familyassist.gov.au.

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