2.4.8: Payer liable to pay 2 or more payees

Context

The amount of child support payable is modified if a payer is assessed to pay child support to 2 or more payees (section 53).

Legislative references

Subdivision G of Division 2 of Part 5, sections 53 and 54 Child Support (Assessment) Act 1989

Explanation

If a payer is liable to pay child support to 2 or more payees the liability to each is calculated according to the basic formula and any modifications that are applicable.

The child support percentage is modified by multiplying the percentage that would otherwise apply by the number of relevant children in that carer's care and then dividing that product by the total number of children for whom the parent is liable to pay child support (section 54).

Example

M and F1 have 2 children, A and B. Both children live with F1. M and F2 have one child C, who lives with F2. M has a child support income of $40,000. F1 and F2 have incomes below the disregarded amount. The child support periods for both cases start on 1 February 2003. M is a liable parent for a total of 3 children. The child support percentage for 3 children is 32%. The calculations are:
Child support percentage for F1	= 32% ´ 2/3 = 21.35%
Child support percentage for F2	= 32% ´ 1/3 = 10.65%
Those percentages are applied to the assessment formula. The child support percentage is rounded to 2 decimal places, to the nearest 0.05% (section 54(2)).
Child support payable to F1	= ($40,000 - $12,315) ´ 21.35% = $5,911
Child support payable to F2	= ($40,000 - $12,315) ´ 10.65% = $2,948

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Version 1.4

Issued 23 December 2003

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