The Legal Practitioner's Guide
4.4.2 (a) Setting or adjusting the annual rate
This is often not the preferred option for agreements and court orders, due to the lack of
flexibility that results from setting a fixed rate. Alternative options for modifying the
formula can be found later in this chapter, with examples of circumstances that may make
such modifications appropriate. However, in some circumstances setting the annual rate may be
appropriate (see above). Varying the annual rate may also be appropriate in some circumstances,
for example, increasing it by $1000 due to school fees where the paying parent has agreed to
meet all the additional cost. The annual rate could also be increased by the paying parent's
share of an additional cost that should be borne by both parents, but which is directly met by
the payee. The payer's share can be found by multiplying the additional cost by the payer's
income percentage (see Step 3 in 1.3(b)).
Departure 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. This amount is to be apportioned
equally between the children.
Note: if you use this clause instead of the alternate clause two (following), the annual
amount will not be adjusted where a terminating event occurs for any of the children. That is,
$3,000 for three children will remain $3,000 for two children if the eldest child turned 18.
OR
-
For the period from [start date] to [end date] the
annual rate of child support be set at $x per child.
OR
-
For the period from [start date] to [end date] the
annual rate of child support payable under the formula assessment be increased by
$x per child.
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].
OR
[Parent A's name] and [Parent B's name] agree that
[Parent A's name] will pay child support, in addition to the formula
assessment, 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].
Tips and problems
When there is a change in the level of care
When an agreement or court
departure order sets the annual rate payable, changes in the level of care of a child cannot
be reflected in the assessment, unless there is a clause that terminates or varies the
agreement when there is a specified change in the level of care.
For example, a child who was in a parent's sole care may go into the shared care of each
parent. If the agreement did not make provision for this possibility, then the previously set
annual rate would remain payable. This could be difficult for the paying parent who is now
incurring additional costs.
Amount per child
An order or agreement should set an amount for each
child or indicate how the amount is apportioned between children. This will ensure that if a
terminating event (section 12) happens in relation to one or more of the children only the
amount per child will remain payable rather than the full annual rate set by the order.
Payment frequency and rate
The periodic amount of child support can be
expressed as an amount per week, fortnight, month, or any recurring period. However, when CSA
collects the child support, it will convert the periodic amount to an annual rate and collect
and disburse the payments in accordance with the Child Support (Registration and Collection)
Act 1988 (see section 28B).