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 assessment already in place
- amounts payable under the agreement must be equal to or more than the child support assessed by the assessment.
CSA will make a notional assessment of how much child support would be payable without the agreement. The notional 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 a new notional 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.
The amount of Family Tax Benefit Part A you receive will be based on the amount in the assessment using the agreement, until a notional assessment is in place.
Upon acceptance of the limited agreement, CSA will make a provisional notional assessment (PNA) and issue it to both parents to check that their circumstances are properly reflected. If the details are accurate, the PNA becomes a notional assessment after 23 days, or on the day the PNA is amended to correct any inaccurate details. Once the PNA becomes a notional assessment, Family Tax Benefit Part A will be based on the notional assessment, not the amount in the assessment using the agreement.
If the notional 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. Either parent can also end the agreement after three years.
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.
You can lodge a limited agreement online or 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 notional 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.