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Limited agreements
Limited agreements are formal agreements that are in writing and signed by both parents.
Parents don't need to seek legal advice before entering into a limited agreement. There are two conditions, which are:
- there must be a child support formula assessment already in place
- amounts payable under the agreement must be equal to or more than the child support assessed by the formula.
The formula assessment is updated every three years, or if the amount of child support payable under the agreement changes by more than 15 per cent, or whenever either parent asks for an updated assessment. This ensures parents know how much child support would have been payable if the agreement was not in place, and helps Centrelink to calculate Family Tax Benefit.
If the formula assessment changes by more than 15 per cent, in circumstances not considered in the agreement, either parent may be able to end a limited agreement by writing to us. This means parents can end agreements if their circumstances change in ways that weren't covered by the agreement.
How to make a limited agreement
A child support agreement form and detailed information are available online. You can use this form as a guide to help you draw up an agreement, or ask for help from a solicitor or Legal Aid. You can also call the Family Relationship Advice Line on 1800 050 321 for help and information. You can also get help from a family dispute resolution service, which can help parents sort out issues about children, money and property. To find a service near you, go to the Community Services Directory.
To lodge an agreement call us on 131 272.
How to end a limited agreement
Parents can end a limited agreement if:
- both parents agree to end the agreement
- more than three years has passed with the existing agreement in place, and written notice is provided by the parent who wants to end it
- there is a court order that sets aside the agreement
- the formula assessment varies by more than 15 per cent from the previous assessment, in circumstances not included in the agreement, and one of the parents wants to end it, or
- a new agreement replaces the existing agreement.
