The new Child Support Scheme

From July 2008 there will be a new formula used to calculate child support assessments.

All child support assessments are based on the new formula and the care information we have about each child.

There's a range of useful information and support tools, including online estimators and worksheets, which will help you support parents receiving their new assessments between March and May 2008.

If parents believe we have based their assessment on incorrect information they should contact us on 1300 885 437.

A new way of working out child support

How we work out child support for different family situations

Estimating child support payments

Combined child support-family assistance online estimator

Your questions answered - general

The Guide v2: 2.4.7 The basic formula - a single case assessment

From 1 July 2008, there are some important changes to the way income is regarded in the new child support formula.

Under the new Scheme, both parents' income will be considered in the same way and both parents will have the same self-support amount deducted from their adjusted taxable income.

Income

Self-support amount

Estimating child support payments

Your questions answered - income

The Guide v2: 2.4.4 Child support income

From 1 July 2008, child support payments will be based on the costs of raising children. This is a significant change to the Scheme.

The new formula recognises that the cost of raising children is different in households with different income levels, numbers of children, and children of different ages.

Under the new formula, the costs of raising children will be calculated according to the combined income of both parents after the self-support amount is deducted. The costs will be divided between the parents according to their share of the combined income.

Costs of children

Costs of children tables (2008)

Costs of children tables (2007)

Every picture tells a story: Inquiry into child custody arrangements in the event of family separation
Department of Families, Housing, Community Services and Indigenous Affairs

The Guide v2: 2.4.6 The costs of the child

The changes to the Child Support Scheme introduce a much greater emphasis on shared parenting and the contribution each parent makes towards the costs of the children through direct care.

Child support payments will reflect each parent's level of care and how much it costs parents to care for their children.

Care of children

Child Support care and cost table

Your questions answered - Income - care

Parenting plans: Family Relationships online

The Guide v2: 2.2.4 Basics of care

In addition to changes to the Child Support Scheme there are also some changes to aspects of family assistance coming into effect from 1 July 2008 that separated families need to be aware of.

You can use the Child Support and Family Assistance online estimator to help parents estimate their new child support and family assistance payments.

Changes to family assistance (fact sheet)

Care and family assistance

Child support and family assistance tables

Combined child support-family assistance online estimator

Your questions answered - Family Assistance

Family Assistance Office

From 1 July 2008, there will be better protection for parents who want to make long-term agreements and it will be easier to make shorter term agreements.

Parents who agree to less child support than the formula amount will be able to, as long as they get legal advice.

There will also be increased flexibility for parents who wish to make a lump sum agreement and make direct payments.

Child support agreements

How agreements affect Family Tax Benefit

Your questions answered - agreements

The Guide v2: Chapter 2.7 Agreements

From 1 July 2008, parents who have children (either natural or adopted) who live with them, may have an amount for their support deducted from their income when calculating child support. These children are called relevant dependent children.

The 'relevant dependent child amount' is based on the cost of the children in the parent's second or subsequent family, using the same cost of children table used for the child support children. So, all children are treated similarly.

Children from second families

Calculating the costs of relevant dependant children

Worksheet: Working out a relevant dependent child allowance

Your questions answered - Other dependant children / second families

The Guide v2: 2.9.5 Relevant dependant children

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Parents who pay child support and care for a step-child can, in certain circumstances, apply for a change of assessment to have their step-children taken into account when calculating child support payments.

Step-children

Your questions answered - Step-children

The Guide v2: 4.3.4 Family Law Act order affecting child support assessment

It's important for non-parent carers such as grandparents to know they can apply to receive child support from the parents of the child in their care.

Child support is still worked out in the same way as it would be for child support parents except the non-parent carer's income is not taken into account - only their level of care.

Non-parent carers

The Guide v2: 2.2.2 Parent and non-parent carer applications

A parent who pays child support for two or more families will have an amount called a multi-case allowance deducted from their child support income. This allowance recognises the parent's responsibility for supporting children in other child support cases.

The formula for parents with two or more child support assessments

Working out a multi-case allowance

Your questions answered - Multiple child support cases

The Guide v2: 2.4.9 Assessments when a parent has multiple child support cases

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A minimum amount will be payable for each child support family.

Paying parents who receive income support, have less than 52 nights a year of care of their child and whose income is less than the self-support amount will pay the minimum payment of $6.50* per week per family.

Minimum assessments

Self-support amount

Care of children

The Guide v2: 2.4.12 The minimum rate of child support

Under the new Scheme, fixed assessments will cover parents who minimise their taxable income in a way that does not fairly represent their true income or real capacity to pay child support.

If a paying parent reports a low taxable income and is not receiving income support, they may be required to pay $21.50* (indexed annually) per child per week. Where there are more than three children, the amount will be capped at $64.50* a week.

Fixed assessments

Minimum assessments

Collecting and enforcing child support

The Guide v2: 2.4.11 Fixed annual rate of child support

From 1 July 2008, parents who earn extra money after separation can apply to have that extra income excluded from their child support assessment for three years after separation, if they didn't earn that income before separation.

Having this extra money excluded from the assessment can help parents with many post-separation costs such as buying a new car, setting up a new home or purchasing items to support the children during care.

Getting back on track

Your questions answered - Overtime/second job

The Guide v2: 2.5.2 Additional income earned post-separation

Under the new Child Support Scheme, reconciliation has been made simpler for parents who decide to give their relationship another chance.

If parents reconcile, we can suspend their child support arrangements with no child support payable and no debts accumulating.

If parents decide to get back together

The Guide v2: 2.10.1 Suspension of liability to pay child support when parents reconcile

If a parent disagrees with a CSA decision they should call us first on 131 272 to discuss their options.

Parents can also ask us to formally review our decision. If parents are still unhappy after their objection has been finalised they may then wish to apply to the Social Security Appeals Tribunal.

If parents don't agree with a CSA decision

Your rights following CSA decisions (brochure)

Social Security Appeals Tribunal

The Guide v2: 4.0.0 Objecting, seeking a review, appealing and applying to court

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In addition to the July 2008 changes to the Child Support Scheme, we have a major focus on compliance to ensure parents pay the right amount of child support in full and on time.

We are detecting non-compliance earlier to help parents meet their child support responsibilities based on their financial capacity and enforcing payments if and when necessary.

Collecting and enforcing child support

Your questions answered - Compliance

The Guide v2: 5.1.1 Child Support (Registrar & Collection) Act 1988

We have developed a range of free support products and comprehensive information for use by stakeholders to help separated families.

You can register your services on the Community Services Directory, which provides a list of services to assist parents on a wide range of family-related issues. By registering your organisation on the Community Services Directory you will automatically receive updates about the new Scheme and other changes at CSA.

Community Services Directory

The New Child Support Scheme and Changes to Family Assistance

Separation resources

Me and My Changing Family - Moving forward

Me and my Kids - Parenting from a distance

Me, my kids and my Ex - Forming a workable relationship for the benefit of your children

Me and my Money - Practical money ideas

What about Me? - Taking care of yourself

Dealing with Separation - an interactive CD-ROM

Family separation: a guide for teens

Publications available in other languages