Your questions answered
Below are answers to some of the common questions our customers have been asking about the new Child Support Scheme.
Updated: 17 February 2008
Q: Why do you need my care details?
A: This is because the new Child Support formula starting on 1 July 2008 uses new percentages of care based on the number of nights your child/children are in your care.
The changes to the way care is assessed in the new Child Support formula also apply to any other biological or adopted children in your care, so CSA also needs information about these children.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: How is the way CSA deals with care levels changing?
A: The Child Support Agency is implementing a new Child Support Scheme to better meet the needs of separated parents and their children. The new Scheme:
- better reflects community values around shared parenting
- better balances the interests of parents and children
- treats both parents' incomes and living costs in a similar way, and
- treats children from first and second families in a similar way.
The change to how child support is calculated means shared parenting is recognised to a much greater degree. Parents with regular or shared care will be acknowledged as directly meeting some of the costs of the children through care.
Child support payments calculated under the new formula will reflect each parent's level of care and how much it costs parents to care for their children.
The new Scheme starts on 1 July 2008. Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Why do you need care information from both parents?
A: From 1 July 2008, income and care for both parents will be treated in the same way, therefore, CSA has the responsibility of confirming, with both parents, the care arrangements for their children. If you don't provide us with up-to-date information about your care arrangements for your children, we may have to rely only on the information we get from the other parent.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: My situation hasn't changed - do I still need to contact you?
A: You only need to contact CSA if your details or circumstances, for instance your incomes, have changed.
We sent you a letter in late 2007 to confirm the total number of nights you have care of your child/ren. If any of the information in this letter is incorrect, or you did not receive this letter, you should contact CSA on 1300 885 437.
You will be sent your new child support assessment between March and May 2008. Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Why have you used an estimated number of nights?
A: We haven't always recorded the specific number of nights because the current formula hasn't required us to keep this information. Under the new Child Support formula, we will need to use the specific number of nights to calculate your percentage of care.
Where we don't have the exact number of nights recorded we have used an estimated number of nights based on the current level of care recorded. If you disagree with this number, you should contact CSA on 1300 885 437.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: How have you estimated the number of nights?
A: The number of nights has been worked out based on your care levels currently recorded for your children on our system.
Under the current Scheme there are five identified care levels: nil, substantial, shared, major and sole care. Each of these care levels has been assigned an estimated number of nights.
The number provided in the letter sent to you in late 2007 is CSA's estimated number of nights for your particular care level based on the current information we have about your percentage of care. If you disagree with this number, you should contact CSA on 1300 885 437.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Why do you need the number of nights if I have already provided them?
A: If you have already provided CSA with care information in number of nights, and the information you have provided is correct, it should be reflected in the letter you received in late 2007 and you do not need to do anything further.
The new Child Support formula requires the specific number of nights each parent has care of the children, so we can calculate the percentage of care.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What if the number of nights you are using is wrong?
A: CSA is preparing for the new Child Support Scheme by confirming the number of nights you have care of your children. If the number of nights is wrong, you could end up paying or receiving the incorrect amount of child support.
We sent you a letter in late 2007 to confirm the total number of nights you have care of your child/ren. If any of the information in this letter is incorrect, or you did not receive this letter, you should contact CSA on 1300 885 437.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What if I don't agree with CSA's decision?
A: If you disagree with the information that we have sent you about your care, or if your circumstances change at any time, just call and let us know and we can take that information over the phone and confirm it with the other party.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What will happen if the other parent disputes the level of care I've provided?
A: If there is a difference in the information provided by either party, CSA will work with both parties to resolve the discrepancies.
To make sure we have a fair process we will treat both parents in a similar manner and give both parents the same opportunity to respond.
CSA may ask you to provide further evidence regarding the claims. Further evidence may be in the form of a letter, or diary or calendar notes about the time you have had care of your child/ren. Other evidence could include a parenting plan or statutory declaration from a third party stating that the information you have provided to CSA regarding the level of care is correct. You may also wish to provide letters from your children's school showing that you are the contact for the school for some or all of the time.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: When working out the amount of care I have, can I include daytime care?
A: Before 1 July 2008, where the care of your children is relatively equal, between 40-60 per cent of the time per week, we can take into account the amount of time both during the day and night that you care for your children. However, if the amount of time that your children spend with you and the other parent is not relatively equal, we will not consider daytime care.
From 1 July 2008, daytime care outside of the shared care category, between 35 - 65 per cent of the time, may be considered in certain situations. Daytime care will still need to be significant and regular to be recognised in your Child Support assessment. If you want to have daytime care recognised after 1 July 2008, you should make a parenting plan or agreement with the other parent and provide it to CSA. More information about developing a parenting plan or agreement is available at Family Relationships Online www.familyrelationships.gov.au
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What if my care changes between now and July 2008?
A: To ensure your child support assessment is accurate, you need to tell CSA about any changes to your care arrangements as soon as they happen.
If any of your details and/or circumstances have changed, let us know via CSAonline, our secure Internet site, or by calling 1300 88 5437.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: I have care of my grandchildren - will these changes to care affect me?
A: Yes. You need to tell CSA about the number of nights you have care of any children that you receive child support payments for.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: I have a child with my new partner - will these changes to care affect me?
A: Yes. You need to tell CSA about the number of nights you have care of any other biological or adopted children you have.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Our court order states that I am supposed to have shared care, but my ex won't let me see my children. What can I do?
A: The Child Support Agency is responsible for supporting separated parents to transfer payments for the benefit of their children. While the new Scheme supports shared parenting, CSA has no legal ability to enforce care levels, even if they are specified in court orders or agreements.
After 1 July 2008, in some circumstances, if a parent stops the other parent from seeing the children without good reason, and the parents have a court order or parenting plan about the care arrangements, CSA will continue to base the child support assessment on the ordered or agreed care. This will reduce any financial incentives to limit the care of the other parent.
If you do have a court order or agreement that is not being complied with, you may wish to seek further legal advice, attend dispute resolution or apply to the Family Court. Make sure you provide the order or agreement to CSA.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: How will the new way of calculating child support affect the amount I pay or receive?
A: Parents who pay or receive child support will be affected by the new Scheme as all child support payments will need to be re-assessed. The changes apply to most separated parents who are registered with the Child Support Agency (CSA) - even if you work out your own payment arrangements, as you may need to change the amount you transfer. The changes may also affect your family assistance payments.
In most cases the amount you pay or receive will change once the new way of calculating child support starts. How it will change and whether it will increase or decrease will depend on a number of factors, including both parents' income, how many children you have and their age(s), whether either parent has another child support case, second families, and the amount of time the children are in your care.
You may receive a CSA letter or we may contact you by phone requesting new information to calculate your child support assessment using the new formula. You will also be notified before the changes come into effect to explain how your payment will change.
If you don't supply this information to CSA your assessment may be wrong and you could pay too much or receive too little. The assessment might also be based only on the information we receive from the other parent.
Be sure to update your information. If any of your details and/or circumstances have changed, let us know via CSAonline, our secure Internet site, or by calling 1300 88 5437.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: How much will I pay or receive when the new formula is introduced?
A: You will receive your new child support assessment between March and May 2008, in advance of the new formula starting.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, and an online tool to provide estimates of child support and family assistance, are now available online from www.csa.gov.au or www.centrelink.gov.au
If any of your details and or circumstances have changed let us know via our secure online service CSAonline. You can also update your details by calling us on 1300 88 5437.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: I've heard the new Scheme is based on the costs of children - who decided what children cost?
A: In 2005, an independent Child Support Taskforce and Reference Group reviewed research into the costs of children in Australia and recommended a new way of calculating child support payments based on their findings. This new formula will replace the current formula that uses fixed percentages of income.
Taskforce and Reference Group members had expertise in a variety of areas, including social and economic policy, family law, post-separation parenting and relationships. Some members also represented child support customers.
The Taskforce conducted new Australian research, and reviewed Australian and overseas research into the costs of raising children, and considered other factors such as households with different income levels, different numbers of children and children of different ages and reached the best and most up-to-date estimates for the costs of children.
More information about the research into the costs of children is available at: In the Best Interests of Children - Reforming the Child Support Scheme - summary / In the Best Interests of Children - Reforming the Child Support Scheme - full report (PDF 282k)
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: How will my payments be affected by the level of care I give?
A: Child support payments calculated under the new formula will reflect each parent's level of care and how much it costs parents to care for their children.
Under the new formula, the 109 night (30 per cent) threshold has been removed. From 1 July 2008, where a parent has care of the child for between 14 and 34 per cent of the nights of the year, 24 per cent of the cost of the child will be taken to be met through the provision of that care. This will reduce the possibility of payments changing as a result of small changes in care, and help to remove incentives for a parent to restrict contact with the other parent.
Where parents have care for at least 35 per cent of the time, a sliding scale will increase the direct cost percentage (reflects the costs you incur when you provide care for your child) as care increases, from 25 per cent up to 50 per cent. So, a parent will be recognised as meeting 50 per cent of the costs of children if their care percentage is between 48 to 52 per cent (equal to 176-189 nights per year).
It's up to parents to manage care arrangements that are in the best interests of the children. Under the new Scheme, the child support formula will recognise the care each parent has of their children, and small changes will not affect payments as much as they do under the current formula.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What types of income will be used to work out my child support under the new scheme?
Income definitions for child support and Family Assistance purposes are being aligned which will make things simpler for parents. These amounts include:
- taxable income, that is the income shown on your tax return
- gross reportable fringe benefits i.e. the value of gross reportable fringe benefits total for the income year, which is reported on your payment summary
- target foreign income i.e. any foreign income you receive that is not taxable income or a fringe benefit
- net rental property losses, which will be added back on i.e. where you have a rental property and the costs outweigh the income
- some tax free pensions (including disability support pensions, wife pensions, carer payments and some Veterans' Affairs payments such as invalidity service pension, partner service pension, income support supplement and Defence Force income support allowance)
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Do the new laws factor in the incomes and assets of new partners?
The current and new Child Support Scheme are based on the premise that biological and adoptive parents should financially support their children. Under the new Scheme, both biological or adoptive parents' incomes are treated in the same way and are combined to work out child support. Child support payments under the current and new Schemes are based on the incomes of a child's parent and not their new partner.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Is there an online calculator available on the website to help parents estimate assessments for 2008?
You will receive your new child support assessment, between March and May 2008, which will apply from 1 July 2008.
In the meantime, you may be able to use the online estimator to work out what your child support or family assistance payments might be from 1 July 2008. This service will give you an estimate of how much child support you may pay or receive, the amount of family assistance you may receive, or if you have less than 35 per cent care of your children, the amount of Rent Assistance you may receive.
This service can't estimate your current child support or family assistance payments, or compare old and new estimates. This online estimator also can't estimate payments for every family situation.
You will be able to use this service if:
- you have one child support assessment only, and so does your ex-partner
- the Child Support Agency uses the child support formula to work out your assessment
- you know the other parent's details, such as their income.
You won't be able to use this service:
- if you or the other parent have children from more than one previous relationship
- if you are a non-parent carer (or the children live with a non-parent carer).
If you can't use the online estimator, detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: I am on a low income and receive Centrelink benefits. Under the new Scheme, will I have to pay more?
Currently, parents who pay child support, who are on low incomes and have little or no care of the child/ren are required to pay around $6 per week. Under this system if there are multiple child support cases 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 the self support amount (including relevant dependent and multi-case allowances) that is put aside for parents before child support is calculated, will generally 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. If you have care of at least 14% of a child, you won't need to pay the minimum for that family, as you will be making a contribution to the costs through that care.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: How will the new formula affect second families / treat first and second families?
A: The new Child Support Scheme uses a more balanced formula to calculate child support. It reflects today's real costs of raising children, including the higher costs of raising teenagers.
The new formula will treat the children of first and second families as equally as possible by using the Costs of Children table to work out the cost of the children from the second family in determining the child support payable (rather than a flat increase to the paying parent's exempt income).
Also from 1 July 2008, there will be a new ground for a Change of Assessment that will allow some parents who have care of a resident child, who is not a biological or adopted child of the parent, to be able to have that resident child taken into account in the child support assessment.
You can access further information about the scheme changes on this website.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
As we progress, the CSA will write to you to inform you of the impact of any changes to your child support case(s). If any of your details and or circumstances have changed let us know via our secure CSAonline online service that you can access via this website. You can also update your details and/or advise of a change in your circumstance by calling us on 1300 88 5437.
Q: If the paying parent has dependent children living with him/her, are those children taken into account when calculating child support payments to an ex partner?
A: The new formula will continue to recognise a parent's dependent child/ren beyond 1 July 2008, with a view that all biological and adoptive children of either parent should be treated as equally as possible. Under the current formula, parents are given a flat rate allowance for children of second families regardless of their income. The new formula will provide a similar allowance, but it will be calculated according to the Costs of Children Table, not as a flat rate.
Because the new formula treats both parents' incomes in the same way, parents who receive child support will also be able to have dependent children from a new relationship (i.e. not child support children) recognised when their child support is worked out.
Also from 1 July 2008, in special circumstances, parents who also care for a step-child can apply for a change of assessment to have their child support payments reviewed, if neither of the step-child's biological parents are able to financially support the child due to death, ill health or caring responsibilities.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Under the new Scheme, when will my new partner's children be counted as my step-children?
A: Under the new Scheme, in these circumstances, parents who have a child support case and also care for a step-child can apply for a change of assessment to have their child support payments reviewed. It doesn't matter whether the step-parent pays or receives child support, as long as they need to support the step-child with their income.
To have this care recognised, the parent must be able to demonstrate:
- they have, or had, lived with the parent of the step-child for a continuous period of two years or more (in a marriage or de facto relationship);
-
the parents of the step-child cannot support the child because of:
- death
- ill-health for example, that prevents them from working or
- their caring responsibilities-for example, caring for a young child or an older child with disabilities; and
- the step-child is aged under 18 and not married or in a de facto relationship.
Change of assessment applications to consider step-children cannot be made until after 1 July 2008 when the new legislation comes into affect.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: If a child support agreement is in place between parents, how will the changes affect this?
A: In order to support customers as we move across to the new Scheme, the CSA will review all child support agreements prior to 1 July 2008 to ensure that they can continue under the new Scheme. Most existing child support agreements will be able to continue under the new Scheme, however the Child Support Agency will work closely with the very small number of parents who have child support agreements that can't be transferred.
Even though the Child Support Scheme is changing on 1 July 2008, parents can still make child support agreements before this date under the current Scheme.
If you would like to make a child support agreement before the new Scheme comes into effect on 1 July 2008, there is detailed information about the new scheme including the changes to child support agreements, available online. Reading about how child support agreements will change from 1 July 2008 will help to assist you in making sure that your agreement will be transferable to the new scheme.
Q: What will the Child Support Agency do about people who claim low personal incomes through businesses, but may actually earn more?
A: If a paying parent reports a low taxable income and is not receiving income support, they will be required to pay $20 (indexed annually) per child per week, unless they can show that their income is genuinely low. Where there are more than three children, the amount will be capped at three times this rate. This is called a fixed assessment. Fixed assessments are being introduced to cover parents whose taxable income does not reflect their actual income.
Parents who believe their children's other parent has a greater capacity to support the children may be able to apply to CSA for a change to their assessment. This option is available under the current Scheme and will continue to be available under the new Scheme. The change of assessment process can consider parents' broader financial resources in setting their child support payments, for example where they earn income through a business. If a parent has deliberately reduced their income to affect their child support assessment, the CSA can also consider a parent's capacity to earn, and the parent's child support liability can be calculated on the basis of what the parent could earn, not what they are actually earning.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: With the increased funding and resources available to CSA, what positive steps are being taken to recover current outstanding monies due to the receiving parent?
A: We now have more staff to answer your questions, investigate your concerns and help children receive the support they need. Increased funding of our compliance program has resulted in the collection of over $70 million for children.
We're also working hard so people who pay or receive child support don't misrepresent their income details to unfairly advantage their personal situation. We're continuing to follow up on information you've provided, and with extra resources, we are better able to support both parents, and help children.
Detailed information on our achievements in collection are reported regularly in our media releases and in our regular Child Support Matters newsletter.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What is CSA doing to make sure people don't misrepresent their income?
A: The Child Support Agency now has more staff to investigate your concerns, answer your questions and help children receive the support they need. Increased funding of our compliance program has resulted in the collection of over $70 million for children.
As part of our formal compliance program, we also:
- Routinely investigate both parents' incomes
- Have recruited extra financial investigators to unravel complex financial and legal structures that are sometimes used to minimise child support
- Will continue to investigate situations such as either parent earning 'cash in hand' income (e.g. cash in hand from the building, domestic help and other industries), earning income as non-salary and wage (e.g. business income), using companies, trusts and partnerships to hide or reduce taxable incomes
- Will consider situations where parents legitimately reduce their taxable income and fringe benefits to establish a more accurate child support assessment, based on the parent's true capacity to pay.
CSA recognises there are some parents who do not try to hide or deliberately avoid earning income to get out of paying child support, but have a taxable income that does not reflect their ability to financially support their children. Where a parent's taxable income is very low but it does not reflect their capacity to pay child support, after 1 July 2008 CSA will be able to assess them for an amount of child support that more accurately reflects their capacity to pay. This is called a fixed assessment.
Currently, you can also apply for a change of assessment on the grounds that the child support assessment does not properly reflect your or the other parent's income. You can continue to do this after 1 July 2008.
CSA will continue to follow up on information you've provided - and with extra resources, we can do a lot more to support both parents, and help children.
If you need to discuss your income with us to make sure your assessment is right, call 131 272 or make a personal appointment. If you know of someone who is genuinely struggling with their child support payments, encourage them to talk to one of our customer service officers on 131 272 or drop in to the nearest CSA office to talk to staff face to face.
Q: Do these changes affect my family assistance payments?
A: Child Support and Family Assistance are linked. The amount of child support you receive can affect the amount of Family Assistance you are entitled to receive.
If we don't have your up to date details, your child support assessment may be incorrect, which could also mean you do not receive the family assistance that you and your children are entitled to.
If you have a child support agreement with the other parent that starts on or after 1 July 2008, your family assistance payment will be calculated based on the amount of child support you'd receive if you were using the child support formula (notional assessment). Therefore if you are working out a new child support agreement now but the agreement will only start after 1 July 2008 - or you are renegotiating an agreement - you should keep these changes in mind.
As long as we can contact you to get the information we need to work out your new assessment, we can work with the Family Assistance Office (FAO) to ensure you receive the family assistance you're entitled to.
If your personal or financial circumstances change, please let Centrelink know by calling 13 6150 or visiting your nearest Centrelink Customer Service Centre or Medicare office or online at www.centrelink.gov.au or www.familyassist.gov.au.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is also available online.
Q: It says that if you have care for less than 35% you don't receive family assistance for that child anymore. How is that right when these parents still have to meet costs for those children?
A: The new way of working out child support payments will recognise the expenses of non-resident parents who have contact with their children.
From 1 July 2008, a parent who has care of a child for less than 35% of the time will not be eligible for the child related components of Family Tax Benefit. Instead of receiving Family Tax Benefit, a parent who has care of a child between 14% to less than 35% of the time will have the costs of the child taken into account in working out how much child support the parent will pay. This level of care is called 'regular care' and will be counted as meeting 24% of the costs of the child for child support purposes. For most child support payers, this will reduce the amount paid. A parent with regular care of a child will continue to be eligible for the rent assistance component of Family Tax Benefit Part A and certain other government benefits.
As long as we can contact you to get the information we need to work out your new assessment, the Family Assistance Office can make sure you receive the family assistance you're entitled to.
Detailed information about the impact of the child support changes on family assistance is now available at www.familyassist.gov.au.
Q: If I share care how will my family assistance change?
A: A parent who has shared care of a child for 35 to 65% of the time will be eligible for a share of the child related components of Family Tax Benefit.
A parent who has care of a child for more than 65% of the time will be eligible for 100% of Family Tax Benefit for the child.
The new arrangements follow the recommendations made in a Report by a Ministerial Taskforce on Child Support. The Taskforce undertook a detailed examination of the costs of children and how this is affected where a child spends time with each separated parent. The new arrangements ensure there is an integrated approach for the child support and Family Tax Benefit systems, and better reflect the costs of the child for each parent.
Detailed information about the impact of the child support changes on family assistance is now available at www.familyassist.gov.au.
Q: I have a child support agreement how will this affect my family assistance?
A: If you have a child support agreement before 1 July 2008 that the Child Support Agency has reviewed and accepted to continue after 1 July 2008, your Family Tax Benefit Part A will continue to be worked out using the amount of child support received under your agreement.
If you enter into a child support agreement on or after 1 July 2008, the maintenance income test for Family Tax Benefit Part A will use a notional amount of child support rather than the actual amount that you receive.
For certain kinds of child support agreements, the Child Support Agency will work out the annual rate of child support that would otherwise be payable under the child support legislation if there was no agreement, and this will be called the 'CSA notional assessment'.
The amount of child support that would be received under a CSA notional assessment is the amount that will be used in the maintenance income test for Family Tax Benefit Part A.
This gives parents more flexibility to make child support agreements while at the same time ensuring that the amount of Family Tax Benefit paid will be the same as if the agreement had not been made. Parents will not get more Family Tax Benefit if they agree to receive less child support, and will not get less if the other parent agrees to pay more child support.
For agreements about a lump sum payment (which are a way of paying child support, not a change to the amount of child support) only, the maintenance income test for Family Tax Benefit will use the amount credited against the child support liability due to the lump sum payment, plus any remaining cash child support received.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available at www.familyassist.gov.au.
Q: With the new changes, are you still able to claim contact expense, such as airfares, hotel, tolls, taxis and phone calls to see kids whom have moved interstate?
A: Where parents are already credited with meeting 24% of the cost of the child through care, because they have 14-34% care, only additional expenses necessary for travel will be able to be claimed under a Change of Assessment. This is because the usual costs of caring for a child, such as food and accommodation, are recognised through the 24% of care.
Where parents have less than 14% care, the existing rules about claiming more general contact expenses will continue to apply - that is, where a parent spends more than 5% of their income on contact expenses, they can have these costs taken into account through a Change of Assessment decision.
Detailed information about the impact of the child support changes on family assistance is now available at www.familyassist.gov.au.
Q: Can the cost of the school fees, uniforms, books, extra school activities within school be split between both parents, if it was arranged pre divorce?
A: Costs of schooling can be complex matters depending on your individual situation. Parents can apply for a change to their assessment to consider these costs in setting their child support payments. The option of applying for a change to the assessment is available under the current system and will still be available after 1 July 2008.
You can also consider payments known as Prescribed Non Agency Payments (PNAPs). These can be made for essential matters like school fees and medical costs without the other parent's approval. Up to 30% of a child support liability can be recognised this way if child support is being paid regularly. From 1 July 2008, these credits will not be available to paying parents who have at least regular care of their children.
When you get your new assessment under the new formula (from March 2008), you will have an opportunity to see how the formula will affect you and to seek information and advice. A change of assessment request may be an option in the case of schooling costs, but you should talk to CSA first.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Can the cost of the school fees, uniforms, books, extra school activities be deducted from child support?
A: A paying parent who makes certain types of payments to third parties, including child care costs or fees charged by a school or preschool for a child, is generally able to have those payments credited towards their liability to pay child support for that child, without the agreement of the payee (Prescribed Non Agency Payments or NAPs). Up to 30% of the normal monthly payment can be recognised this way as long as the payer pays the other 70% of the normal monthly payment when it is due. However, this option may not be available if CSA has already taken into account those costs met directly by the payer in a Change of Assessment decision. From 1 July 2008, these credits will not be available to paying parents who have at least regular care of their children.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Are there going to be changes in regards to how overtime is assessed so that the paying parent does not have to pay more child support when he or she decides to work extra hours?
A: From 1 July 2008, there will be changes to the treatment of additional income to help with re-establishment. For the first three years after separation, parents will be able to apply to have additional income that they didn't earn before separation, such as their income from second jobs and overtime, excluded from child support calculations. Up to 30% of a parent's income being used for child support purposes can be excluded in this way.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
You can also keep up to date by subscribing to receive email updates on the new scheme as they are available. Subscribe for Scheme Reforms updates.
Q: At the moment I do not have any formal arrangement to share the care of my children. How can I formalise the arrangement to equally share the responsibility of my child/ren?
A: You may wish to seek advice from the Family Relationship Advice Line on 1800 050 321. The Family Relationship Advice Line is a national telephone service which assists people from families affected by relationship or separation issues.
They can provide specialist advice on family separation and provide guidance on developing sustainable parenting arrangements after family separation. You can contact them Monday to Friday 8.00 am to 8.00 pm and Saturday 10.00 am to 4.00 pm.
Q: Will the new Scheme help me get to see my children?
A: The Child Support Agency is responsible for supporting separated parents to transfer payments for the benefit of their children. Whilst the new Scheme supports shared parenting, CSA has no legal ability to enforce care levels, even if they are specified in court orders or agreements.
In some circumstances, if a parent stops the other parent from seeing the children without good reason, and the parents have a court order or parenting plan about the care arrangements, CSA will continue to base the child support assessment on the ordered or agreed care. This will reduce any financial incentives to limit the care of the other parent.
If you do have a court order or agreement that is not being complied with, you may wish to seek further legal advice, attend dispute resolution or apply to the Family Court. Make sure you provide CSA with a copy of the order or agreement.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: If I am not able to see my children, will I still have to pay child support under the new scheme?
A: The Child Support Agency recognises many separated parents would like to spend more time with their children. Child Support is designed to support your children financially. The need to provide financial support for children doesn't cease if there is a disagreement about care.
The Family Relationships Advice Line on 1800 050 321 can refer you to mediation, counseling and legal advice services that may assist you to reach an agreement with the other parent, or to provide options. CSA has no legal authority to enforce care levels, even if they are specified in court orders or agreements.
Under the new Scheme, the child support formula will recognise the care each parent has of their children, and small changes to care will not affect payments as much as they do under the current formula.
Also, in some circumstances, if a parent stops the other parent from seeing the children without good reason, and the parents have a court order or parenting plan about the care arrangements, CSA will continue to base the child support assessment on the ordered or agreed care. This will reduce any financial incentives to limit the care of the other parent.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: I pay child support but how do I know that it goes to my children?
A: If you feel the child support payments you are making are not being spent to support your children in a way you deem appropriate, you may like to consider the option of making Non-Agency Payments.
Q: What is a Non-Agency Payment (NAP)?
A: You can ask CSA to recognise payments made directly to the other parent or a third party as child support payments, if CSA is collecting your child support. These payments are known as non-agency payments (NAPs), and may be in the form of cash or items or services agreed to by both parents (such as children's clothes or car repayments). Either parent can advise CSA that a NAP has been made. CSA will ask the receiving parent to confirm that the payment, or the value of goods or services, was intended as child support.
If you often use these sorts of payments to meet your child support liability, and both parents agree, it may be easier for you to make a child support agreement or private collect arrangement, rather than reporting the NAP each time.
CSA doesn't require the other parent's approval to accept some types of NAPs, known as prescribed payments, made for essential matters like school fees, essential medical costs and the receiving parent's accommodation or housing costs. Up to 30% of the monthly child support liability can be recognised this way if the remaining 70% of the monthly child support is paid.
For more information on making payments other than directly to your partner, please read the Fact Sheet on Making direct payments. Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is also now available online.
You may also wish to discuss this directly with your ex partner. This could include exploring other options such as you paying your child support commitments directly to third parties (e.g. school fees).
If you need assistance or advice on how to raise these issues with your ex partner you may wish to contact the Family Relationship Advice Line who will assist you mediate a positive outcome for the benefit of your children. They can be contacted on 1800 050 321 Monday to Friday 8.00 am to 8.00 pm and Saturday 10.00 am to 4.00 pm.
Q: My youngest child is about to turn 18. What happens to my child support?
A: When your youngest child turns 18, your child support assessment will end unless CSA accepts an application for the assessment to continue because the child is still at school. This application must be made prior to your child turning 18.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: My child will turn 18 before they finish school, do I still pay/receive child support?
A: Where a child will turn 18 before the end of school, parents can apply to CSA to have their child support assessment extended until the end of the school year. This application must be made prior to your child turning 18.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: My relevant dependent child will turn 18 before they finish school, what happens to my child support?
A: From 1 January 2008, parents can apply to have the recognition of a relevant dependent child continued until the end of the school year, if the child turns 18 before this. This works in the same way as continuing a child support liability for a child who turns 18 while they are still at school. The parent of the child will need to apply before the child's 18th birthday.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: I have a court order, will the new Scheme affect it?
A: If there's a court order that outlines care levels, your child support assessment will be usually based on the order unless both parents agree to change it, for example, by a parenting plan or oral agreement.
CSA has no legal ability to enforce levels of care specified in court orders. If orders are not complied with, you could try to resolve the situation through family dispute resolution. If orders are contravened, either parent may seek legal advice, attend family dispute resolution, or apply to the Family Court. Alternatively, you may be able to take enforcement action through the court.
If you have a court order outlining the amount of child support to be paid, this order will continue after 1 July 2008. If the order is not for a set amount, CSA will contact you to let you know how the order will be administered after 1 July 2008.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What is a parenting plan and how do they work?
A: Parenting plans are written agreements, worked out jointly, that can outline the amount of time the children will be in each parent's care. A parenting plan doesn't need to spell out the exact arrangements for every night in the year. Parents can agree on what the care percentage will be.
Under the new Scheme, a parenting plan is the best way for parents who have significant and regular daytime care to have it recognised in their assessment. While the formula is based on care measured by number of nights, it has the flexibility to cover the very small number of customers who have significant regular daytime caring responsibilities and no night time responsibilities, in some circumstances. If you have an arrangement like this, we recommend you and the other parent make a parenting plan and provide a copy to the Child Support Agency (CSA).
You may wish to seek advice from the Family Relationship Advice Line on 1800 050 321. The Family Relationship Advice Line is a national telephone service which assists people from families affected by relationship or separation issues. They can provide specialist advice on family separation and provide guidance on developing sustainable parenting arrangements after family separation. You can contact them Monday to Friday 8.00 am to 8.00 pm and Saturday 10.00 am to 4.00 pm.
More information about parenting plans and a fact sheet are available on the Family Relationships Online website.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: When will I get more information from CSA?
A: Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
All CSA customers will receive their new child support assessment between March and mid-May 2008, which will detail their new assessment and how it was calculated including how much is payable from 1 July 2008.
If you want to estimate what your new child support or family assistance payments might be, you may be able to use the Child Support - Family Assistance Online estimator.
You can also keep up to date by subscribing to receive email updates on the new scheme as they are available. Subscribe for Scheme Reforms updates.
CSA will hold information sessions about the changes to the Scheme in rural and regional communities from October 2007, and include information in our regular Community Information Sessions (CIS), held throughout Australia. Look out for a CIS in your area.
Check the Scheme Reforms communication calendar (PDF 47k) for Scheme Reforms advertising dates.
Q: Do I have to do anything now if the new Scheme is not starting until 2008?
A: You do not have to do anything differently just yet. But it's important that you keep your details up to date with CSA (such as any changes of address, phone and email, along with any changes in your circumstances such as your care and income information) so we can keep you informed of changes as they happen.
If any of your details and/or circumstances have changed let us know via our secure internet service CSAonline. You can also update your details and/or changes in circumstances by calling us on 131 272.
When you receive your new assessment between March and May 2008, you should check it and contact CSA if you disagree with any of the information in the letter. You should also let CSA know if you have not received the new assessment letter by the beginning of June.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Do I need to do anything if the other parent and I have a case registered with the CSA and work out our own child support payment arrangements?
A: Yes. You still need to make sure CSA has your current contact details.
Even if you work out your own payment arrangements with the other parent, you need to know about the changes to the Child Support Scheme. CSA will also work out an assessment for you based on the new formula, so you know the amount you have to pay to or receive from the other parent. The changes to the Scheme could also affect your family assistance payment.
If we have your correct contact details, we'll be writing to you over the coming months to obtain the information we need to work out your new child support assessment, and to make sure the Family Assistance Office (FAO) can accurately determine the amount of family assistance you're entitled to.
Your new assessment could be based on only the information we receive from the other parent if we cannot contact you.
So if any of your details have changed let us know via our secure internet service CSAonline. You can also update your details by calling us on 131 272.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: Why is CSA asking people to update their contact details?
A: It is important that we have your up to date contact details so that we can send you information about the reforms later this year. We will also need to contact you to collect details about your care arrangements, so that we can get your new assessment right when the new formula is introduced on 1 July 2008. If we can't contact you, your new assessment could be based only the information we receive from the other parent.
This is relevant to you even if you work out your own child support arrangements, and even if you have previously supplied information to CSA.
So if any of your details and/or circumstances have changed let us know via our secure internet service CSAonline. You can also update your details by calling us on 131 272.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: What if CSA has my up to date contact details already?
A: You only need to let us know if your contact details and/or circumstances change. But if you haven't contacted us for a while, or received any letters from us, then you should check that your details are correct by calling 131 272.
Q: What happens if the CSA can't contact me?
A: If you don't keep your details up to date, you might miss out on important child support information, and over time this might affect how much you pay or receive.
CSA needs to be able to contact you to make sure we can correctly work out your new assessment under the new formula. If we can't contact you, your new assessment could be based only the information we receive from the other parent.
The new Scheme may also affect your family assistance payment. If we can contact you, we can work with the Family Assistance Office (FAO) to help make sure you receive the correct amount of family assistance.
So if any of your details and/or circumstances have changed let us know via our secure internet service CSAonline. You can also update your details and/or changes in your circumstances by calling us on 131 272.
Q: What if I disagree with my new assessment when I receive it?
A: When you receive your new child support assessment, between March and May, make sure you check it carefully. If you don't agree with the details CSA has used in calculating your new assessment, call us and we can discuss these with you and update your assessment if necessary.
If you then don't agree with the assessed amount you have to pay or will receive, you may have the right to object to CSA and seek a review of the decision. If after objecting you still feel that CSA's decision is wrong, you can appeal to the Social Security Appeals Tribunal.
Detailed information about your objection rights following a CSA decision and other changes to the Child Support Scheme are now available online. Make sure you check your new assessment as soon as you receive it, as you will need to object within 28 days of getting the letter.
If you want to estimate what your new child support or family assistance payments, you may be able to use the Child Support - Family Assistance Online estimator.
Q: Will my privacy still be protected under the new Scheme and while the Child Support Agency prepares for the new Scheme?
A: Yes. CSA is required by law to collect certain information about you and your family for child support purposes, such as your taxable income. We understand that some of this information is sensitive and we place great emphasis on protecting your privacy.
We are required by law to pass on some of your information to the other parent, such as information we use to work out your assessment. This is so that they understand how the assessment has been calculated. Information such as your contact details will not be passed on.
CSA is asking all parents to update their details so that we can contact you with the latest information available.
Q: Under the new Scheme, will my ex be able to see my current income details?
A: As with the existing Scheme, from 1 July 2008, CSA will still be required by law to show customers how the child support assessment has been calculated.
Under the new Scheme, each parent's income is used to work out their child support income which is subsequently used to calculate the child support amount. Your new child support assessment, which you will receive between March and May 2008, will include details of each parent's income and the combined child support income.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: I have more than one child support case, how will you work out my payments?
A: The new Scheme will recognise your responsibility to support your children in other child support cases through the application of a multi-case allowance and a multi-case cap in your assessments.
The multi-case allowance is:
- the total costs of the children in your other child support cases calculated using the cost of children table, based on your income.
- deducted from your adjusted taxable income along with your self-support amount, and any relevant dependant child amount, to arrive at your child support income.
The multi-case cap:
- ensures you will not pay more in child support than it would cost you to support your child support children if they were all living in your household.
The assessment for each child will be the lesser of the amount assessed under the child support formula and the amount of the multi-case cap for that child.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
Q: My child support payments are deducted straight from my salary, do I need to let my employer know about the Scheme changes?
A: Paying parents who currently rely on the CSA to initiate and manage child support deductions straight from their salary, wage or contract payments (Employer Withholding), won't need to notify their employer about changes to their assessment as a result of the Scheme reforms.
The CSA has already started contacting employers to inform them about changes to the Scheme, and how it will affect employees. Between April and June this year, a new deduction schedule will be sent out to Employer Withholding employers for each employee who is a Child Support customer and has had a change to their assessment.
More information for both you and your employer can be found on the CSA web site.
Q: Did we miss something?
A: To keep you as informed as possible, CSA will regularly update this section of the website. If you would like to offer feedback on this page or think that we've missed something, email us.
Paying parents who currently rely on the CSA to initiate and manage child support deductions straight from their salary, wage or contract payments (Employer Withholding), won't need to notify their employer about changes to their assessment as a result of the Scheme reforms.
Although, we can't answer questions on an individual basis the information we receive will help us to identify further issues to address so as to deliver to you the information that you need and want.
Detailed information about the changes to child support and family assistance, including tables, worksheets and examples, is now available online.
All CSA customers will receive their new child support assessment, which will apply from 1 July 2008, between March and mid-May 2008.
If you want to estimate what your new child support or family assistance payments might be, you may be able to use the Child Support - Family Assistance Online estimator.