2.4.6: Care shared or divided between parents
Context
If care of a child is shared or divided between parents, each parent is an eligible carer in relation to the other. CSA calculates and offsets each parent's liability to pay child support to the other. This can occur where a child resides with both parents or where each parent has a child living with them.
Legislative references
Subdivision E of Part 5, sections 47, 48 and 49 Child Support (Assessment) Act 1989
Explanation
The following modifications to the basic formula apply in shared care (including substantial and major contact) or divided care cases:
- The income cap for high-income payers operates if applicable (section 48(1)(a)).
- As each parent is an eligible carer the disregarded amount does not apply (section 48(1)(b)).
- To work out each parent's exempt income amount, allowance is made for a child in shared care, but not for a child with whom the parent has only substantial contact (section 48(1)(d) and (da).
- To work out the child support percentage in each assessment:
- a child in substantial care counts as 0.35 of a child,
- a child in shared care counts as 0.50 of a child, and
- a child in major care counts as 0.65 of a child.
| Total number of children a payer is liable to pay child support for |
Modified child support percentage |
|---|
| Less than 0.35 |
Not applicable |
| 0.35 |
8 |
| 0.50 |
12 |
| 0.65-0.70 |
14 |
| 0.85 |
16 |
| 1.00 |
18 |
| 1.05 |
19 |
| 1.15-1.20 |
20 |
| 1.25-1.35 |
22 |
| 1.40-1.45 |
23 |
| 1.50-1.55 |
24 |
| 1.60-1.70 |
25 |
| 1.75-1.90 |
26 |
| 1.95-2.05 |
27 |
| 2.10-2.20 |
28 |
| 2.25-2.40 |
29 |
| 2.45-2.60 |
30 |
| 2.65-2.85 |
31 |
| 2.90-3.20 |
32 |
| 3.25-3.70 |
33 |
| 3.75-4.20 |
34 |
| 4.25-4.70 |
35 |
| 4.75-5.0 or more |
36 |
Example
| M and F have 2 children under 10, A and B. A lives with M. M has major care of B. F has substantial care of B. M has a child support income of $40,000. F has a child support income of $30,000. The annual rate of child support (for a child support period commencing 1 January 2003) is calculated:
As a liable parent, M, has 2 relevant dependants and is liable to pay child support for 0.35 children. The child support percentage is 8%. The amount of child support payable is: |
| Rate of child support |
= ($40,000 - $25,027) ´ 8%
= $1,198 |
| As a liable parent, F has no relevant dependants and is liable to pay child support for 1.65 children. The child support percentage is 25%. The amount of child support payable is: |
| Rate of child support |
= ($30,000 - $12,315) ´ 25%
= $4,421 |
| F has to pay M |
$4,421 - $1,198
= $3,223 |
Example
| M and F have 2 children under 10, A and B. A lives with M. B lives with F. M has a child support income of $40,000. F has a child support income of $30,000. The calculations are:
As a liable parent, M has one relevant dependant and is liable to pay child support for one child. The child support percentage is 18%. The annual rate of child support (for a child support period commencing 1 January 2003) is calculated: |
| Rate of child support |
= ($40,000 - $22,792) ´ 18%
= $3,097 |
| As a liable parent, F has one relevant dependant and is liable to pay child support for one child. The child support percentage is 18%. The amount of child support payable is: |
| Rate of child support |
= ($30,000 - $22,792) ´ 18%
= $1,297 |
| M has to pay F: |
$3,097 - $1,297
= $1,800 |
Version 1.4
Issued 23 December 2003
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