2.5.4: Effect of a child support agreement

Context

The effect of a child support agreement depends on whether child support is already payable and the kind of provisions it contains.

Legislative references

Sections 34B, 93, 94 and 95 Child Support (Assessment) Act 1989

Explanation

Date of effect where child support is not already payable

When CSA accepts an agreement in a case where child support is not already payable, CSA will make an administrative assessment of child support (section 93(2)). The child support assessment will start from a day determined under section 93(1):

• if the application for acceptance was made to CSA within 28 days of making the agreement and the agreement says when child support starts to be payable, the child support assessment will start on the day specified in the agreement (but not before 1 October 1989)
• if the application for acceptance was made to CSA within 28 days of making the agreement and the agreement does not say when child support starts to be payable, the child support assessment will start on the day the agreement was made; or
• if the application for acceptance was made more than 28 days after the agreement, the child support assessment will start on the day the application was made.

Date of effect where child support is already payable

Where child support is already payable and the agreement does not affect the annual rate of child support CSA will take whatever action is necessary to give effect to the agreement (section 94).

Example

Where child support is already payable and the agreement affects the annual rate of child support, a new child support period commences and CSA will make a new administrative assessment to give effect to the agreement (section 34B).

The agreement has effect:

• on the date the agreement specifies (but not before 1 October 1989 or the start date of the liability), or
• if the agreement does not specify a date, the date the agreement was entered into (but not before the start date of the liability).

Effect of certain provisions

Once a child support agreement is accepted by CSA the provisions have effect as though they were court orders (section 95).

If an agreement includes:

• a provision for periodic payments to a parent,
• a provision varying a provision of that kind, or
• a provision agreeing on any other matter that a court can include in an order for a change to the assessment (See chapter 4.3 heading Application for a change to a child support assessment in special circumstances (section 123)),

the provision has the same effect on the child support assessment as a court order made by consent (section 95(2)) (See chapter 4.3). This means CSA's child support assessment must take into account those provisions in the agreement.

If an agreement includes a provision for one parent to provide child support to the other parent otherwise than in the form of periodic amounts paid to the other parent:

• the provision has effect, for the purposes of making an assessment under Part 5, as if it is a consent order under section 124, and
• if the agreement is registered in a court with jurisdiction under the Family Law Act, the court can enforce the provision as if it were an order made under the Family Law Act (section 95(3)).

If an agreement includes a provision stating:

• whether a non-periodic amount is to be credited against a parent's child support liability under an assessment, and
• stating the annual value or specifying a percentage by which the child support payable should be reduced,

those statements have effect as if they were in a consent order for child support to be in a form other than periodic amounts. This means that CSA must amend the child support assessment to give effect to those crediting provisions (section 127), and the 25% rule may apply if the payee is in receipt of an income tested pension, benefit or allowance (section 128).

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Version 1.1

Issued 18 February 2003

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