The new Child Support Scheme

The new Child Support Scheme and changes to Family Assistance

A minimum amount will be payable for each child support family, rather than split between families.

In this section:

• If you have regular care of your child
• If you have two or more child support assessments
• Returning to work
• If you report a very low income and don't receive income support

Currently, parents who pay child support, are on low incomes and have little or no care of the children, are required to pay around $6 a week. Under this system, many families receive a lot less than $6 a week because the amount is split between families.

From 1 July 2008, paying parents who receive income support payments and whose income is less than around $14,600* will pay the minimum payment of around $6 per week per family. The minimum rate of child support will be indexed annually, and parents will be advised in writing of the new amount.

* This amount is based on the maximum level of Parenting Payment–Single, and is indexed each year.

If you have an outstanding child support amount, the Child Support Agency can deduct from your income support payment three times the minimum payment amount. This can continue until all the child support you owe is recovered.

If you are on income support and have regular care of your child

If you have regular care of 14 and 34 per cent (between 52 and 127 nights a year), you won't need to pay the minimum to that family because you'll meet some of the child's costs directly through care.

If you are on income support and have two or more child support assessments

If you pay child support to more than one receiving family, you will pay the minimum amount of about $6 to each family. This ensures that children get the full amount of child support payable and won't miss out because of a parent's other child support cases.

If you pay child support to more than three families, the total amount you'll pay will be limited to three times the minimum amount, approximately $38 per fortnight, which will be divided equally between the families.

Returning to work

To help parents move from income support to work, the minimum payment of child support can continue for 28 days after you otherwise would need to start paying a higher amount. After 28 days, your child support will be reassessed to take into account your higher income.

If you report a very low income and don't receive income support

If a paying parent reports a low taxable income—below the maximum level of Parenting Payment–Single (currently about $14,600)—and are not receiving income support, they will be required to pay $20 (indexed annually) per child per week. Where there are more than three children, the amount will be capped at $60 a week. This is called a fixed assessment.

Fixed assessments are being introduced to cover parents who deliberately under report their income to avoid paying or to reduce the amount of child support payable.

This $20 per child amount will still be payable if the parent has regular care of the child (14 to 34 per cent). If a parent has a higher level of care, this amount will not be payable because the parent will be directly contributing to the child's support through care.

If your income is genuinely low
If you don't claim income support—for example, because your new partner supports you—and have genuinely low income, you can apply to pay the minimum amount of child support (currently about $6 a week) instead of the $20 fixed payment. You'll need to demonstrate to the Child Support Agency that your income is genuinely low.