Making direct payments

Even if we collect and transfer payments for you, sometimes you may want or need to make payments that can be recognised as child support. These types of payments are often referred to as non-agency payments.

If both parents agree a payment was made in lieu of child support

Direct payments are payments made by the paying parent to the receiving parent.

Third party payments are payments made by the paying parent to a third party on behalf of the receiving parent.

Examples of third party payments include:

  • food, clothing and household goods
  • rent, mortgage payments
  • payments not in money, such as free accommodation or household repairs
  • health insurance or payments for medical or dental treatment
  • school fees, tuition or child care expenses
  • loan, credit card and store account repayments
  • travel or holiday expenses
  • bills such as gas, electricity, telephone or council rates
  • motor vehicle expenses
  • sports club and coaching fees or other sporting expenses.

We can only credit both these types of payments if both parents agree these payments were made in lieu of child support.

If parents don’t agree about a payment

Prescribed payments are certain payments that can be credited as child support even if the parent receiving child support doesn’t agree the payment was in lieu of child support. As long as the paying parent pays 70 per cent of their normal monthly child support payment on time, a maximum of 30 per cent of the monthly payment can be credited in this way.

Prescribed payments can be for child care costs, school fees, school uniform and book fees, essential medical and dental items, the other parent’s share of rent, mortgage, utilities and rates, or some motor vehicle costs.

We only credit prescribed payments if the paying parent has less than 14 per cent (regular) care for all the chidren of the assessment. This is because if you have more than 14 per cent care of any of the children, the direct costs you incur when you care for the children are recognised in the child support formula.

If both parents agree the prescribed payment was made for the purpose of child support, then the payment can be credited as a direct or third party payment regardless of your percentage of care.

If you have made a direct, third party or prescribed payment call us on 131 272. For more information go to our website www.csa.gov.au

Example

Jodie and Phillip

Jodie and Phillip have two children, Steven and Gemma. Jodie, the paying parent, pays $200 a month in child support to Phillip, the receiving parent. Jodie pays $600 in school fees to the children’s primary school, and asks us to credit the payment as child support. Phillip says he did not agree that payment of the school fees was in lieu of child support. However, because payment of school fees is a prescribed payment, Phillip’s agreement is not required. Jodie also has less than 14 per cent care of the children. In this situation, we can credit the school fees payment as long as Jodie pays 70 per cent of her normal child support payment every month. Over the next few months, Jodie pays $140 a month by the due date (70 per cent of the monthly child support payment). The reminder of her monthly payment, $60, is credited until the whole credit for the school fees ($600) has been used.

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