The Legal Practitioner's Guide
4.4.3(g) Varying the cost percentage
The formula in effect from 1 July 2008 works out the share of the child's costs that each
parent is meeting directly, according to their share of the care, as set out in the table in
section 55C. In some circumstances, the share of the cost that each parent meets directly
may be significantly different from the figures in this table.
For example, parents may have shared care, and be assessed as each meeting 50% of the child's
costs directly, but one parent may be paying all of the school fees or medical costs. It may
be appropriate to vary the cost percentages in such a situation. This kind of variation
would often be used in conjunction with a variation to the cost of the child (see 4.4.3(f)).
Parents may also choose to agree that they each meet 50% of the child's costs, for example,
although their care is not exactly equal.
Departure order
-
That pursuant to section 117 of the Child Support (Assessment) Act 1989 there be
a departure from the administrative assessment(s) of child support payable for the child
[child's name] for the period from [start date] to
[end date] as follows:
-
The cost percentage of [Parent A] is to be increased by x
percentage points (but not above 100%) and the cost percentage of [Parent B]
is to be decreased by x percentage points (but not below 0%).
OR
-
The cost percentage of [Parent A] is to be set at 50% and the cost
percentage of [Parent B] is to be set at 50%.
Agreement
- [Parent A's name] and [Parent B's name] agree that
when calculating child support payable for the child(ren)for the child [child's name]
for the period from [start date] to [end date]:
-
The cost percentage of [Parent A] is to be increased by x
percentage points (but not above 100%) and the cost percentage of [Parent B]
is to be decreased by x percentage points (but not below 0%).
OR
-
The cost percentage of [Parent A] is to be set at 50% and
the cost percentage of [Parent B] is to be set at 50%.
Tips and problems
In order to avoid anomalous results, if one parent's cost percentage is adjusted or set, then
the other parent's cost percentage should be adjusted or set such that the two figures will
continue to add up to 100%.
If the variation to the cost percentages is relevant for only one child, the court order or
agreement should specify this.
It is advisable to use percentage point variations, rather than varying the percentage by x%.
Decreasing 50% by 10% could be interpreted as resulting in either 40% (reduction of 10
percentage points) or 45% (reduction of 10% of 50%).