The new Child Support Scheme and changes to Family Assistance
What are the changes?
Here's an overview of the changes to child support from 1 July 2008.
A new way of working out child support
All assessments will be based on a new formula, which is based on the costs of raising children, treats both parents' incomes in a similar way and better acknowledges shared parenting.
Both parents' incomes taken into account
Each parent's income will be considered in exactly the same way and combined to work out the costs of the children. Each parent's share of the total income will show how much of the children's costs they should meet.
The costs of raising children will be better accounted for
The new formula is based on the costs of raising children according to independent research. It recognises that the cost of children is different in households with different income levels, numbers of children and children of different ages.
An amount for self-support will be excluded from both parent's incomes
Before child support is worked out, a self-support amount—the same amount for each parent—that accounts for costs of supporting yourself after separation will be deducted from each parent's income.
Important
information for people receiving family assistance
Better recognition of shared care
Child support payments will better reflect each parent's level of care and how much it costs to care for the children. There will also be changes to the way family assistance payments are worked out for parents who share the care of their children.
Children from first and second families treated in a similar way
Under the new formula, parents with natural or adopted children living with them in a second or subsequent family will now have these children treated in the same way as their child support children.
Important
information for people receiving family assistance
Changes to the income used to work out payments
The income used for child support and family assistance assessments will be similar, and more types of income will be included such as foreign income, fringe benefits and additional tax-free pensions and benefits.
Families will receive a minimum child support payment
Parents who have a minimum child support assessment and pay child support to more than one family will pay a minimum amount for each family.
Help with re-establishing yourself after you separate
You will be able to ask that additional income earned after separation be excluded from your child support assessment for three years after separation.
Important
information for people receiving family assistance
More flexible agreements for child support
There will be better options for parents who make private agreements between themselves for ongoing child support or lump sum payments. These changes will also affect how your family assistance is calculated.
Other changes
- In special circumstances, parents can apply to change their assessment to take into account care of step-children.
- Support for parents who decide to get back together.
- Improved collection and compliance activities.
Because the changes to the Scheme are so significant, the Australian Government is introducing the changes in three stages over two years. For more information about the changes introduced in 2006 (stage one changes) and 2007 (stage two changes), go to the Child Support Scheme Reforms section of the Child Support Agency (CSA) website.