The child support formula
Every family is unique, and the child support formula is flexible and takes into
account many different family circumstances. It ensures a balanced and flexible
way of working out child support payments.
The key components of the formula are that:
We follow eight steps to calculate child support.
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1 Work out your child support income
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If you have dependent children or more than two child support assessments, this
will be taken into account at this step.
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2 Work out the combined child support income
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3 Work out your income percentage
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4 Work out your care percentage
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5 Work out your cost percentage
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6 Work out your child support percentage
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7 Work out the cost of your child
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You will get either a positive or negative child support percentage.
If the percentage is positive, you need to pay child support
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8 Work out the child support amount
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The basic formula
The basic formula applies to parents with one child support assessment and no other
dependent children. This is the formula we use for most child support assessments.
Learn more about the basic formula.
Parents with other dependent children
The cost of a biological or adopted child living with a parent is calculated in the
same way as the cost of a child support child. To recognise the care a parent provides
for these children, called relevant dependent children, we deduct an amount from
the parent’s adjusted taxable income before applying the basic formula.
Learn more about the formula for
parents with other dependent children.
Parents with two or more child support assessments
The calculations for parents with two or more child support assessments are a little
more involved yet are still based on the basic formula.
If you pay or receive child support for two or more families, we deduct an amount—called
the multi–case allowance—after we deduct the self–support amount
and any relevant dependent child amount from your adjusted taxable income, to arrive
at your child support income. We then go on to apply the basic formula.
The multi–case allowance recognises your responsibility for supporting your
children in other child support cases. The multi–case allowance for each child
support child is the total of the multi–case cost for each child according
to the age of the child and how much it would cost if all the children were living
with you.
Older children have a higher multi–case cost than younger children of the same
parent.
Where a paying parent has multiple cases, the formula uses a multi–case cap
to determine the maximum amount of child support payable. The multi–case cap
ensures you don’t pay more in child support than it would cost you if you
had all your child support children living with you.
To work out the multi–case cap, we take the multi–case cost of the child
adjusted for any care you have of the child.
Learn more about the formula for parents
with two or more child support assessments.
You receive child support but are not the parent
If you provide care for a child and you are not the parent, you can receive child
support from both parents of the child if you apply for a child support assessment.
Child support is still worked out using both parents’ incomes, cost percentages
and child support percentages—similar to how child support is worked out for
parents. However, only your cost percentage, based on your level of care, is relevant
to working out how much child support is payable—your income is not taken
into account.
Learn more about the formula for non–parent
carers.