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FAMILY LAW

Challenging a child support assessment to get more child support

There are two ways to challenge a child support assessment.

There are two ways to challenge a child support assessment:

  1. application to the child support Registrar for a change of assessment in special circumstances; or
  2. application to the court for a Departure Order.

Which parent can apply?

Either parent can apply to have an assessment reviewed.

What can be changed?

Your assessment can be varied by:

  • Determining the annual rate of child support
  • Varying the costs percentage of the children (see our article on calculating child support for a real example of this)
  • Varying the child support income
  • Varying the parents’ combined income

Process for applying for a change of assessment

Step 1Lodge a change of assessment with the child support Agency (“Agency”)
Step 2The Agency will provide your request to the other parent and provide them with an opportunity to respond
Step 3A conference is then organised with both parties (in person or by telephone)
Step 4The Agency can make enquiries and carry out an investigation
Step 5A decision can be made regarding future payment periods as well as past payment periods (only up to a period of 18 months regarding past payments, otherwise the court’s leave is required)
Step 6If the issues are too complex, the Agency will ask the applicant to file an application with the court
Step 7For your application to be successful, you will need to show the agency that:

(a)    A reason for a change of assessment exists; and

(b)    The change to the assessment is just and equitable

(c)     The proposed change is otherwise proper

These are explained in more detail below.

Step 8The Agency will then issue you with a written decision. There is an objections process if you are unhappy with the outcome of your application.

Reasons you can challenge your child support assessment

The following are considered reasons for a change of assessment:

  1. The costs of raising the child are significantly affected by the high costs of spending time or communicating with the child
  2. The costs of raising the child are significantly affected because of their special needs
  3. The costs of raising the child are significantly affected because the child is being cared for, educated or trained in the way both parents intended
  4. The child support assessment is unfair because of the child’s income, earning capacity, property or financial resources
  5. The child support assessment is unfair because you’ve paid or transferred money, goods or property. This can be to your child, the receiving parent or a third party and is for the child’s benefit.
  6. The costs of raising the child are significantly affected by the parent or non-parent carer’s child care costs. This child must be under 12 years of age.
  7. Your necessary expenses significantly reduce your capacity to support the child.
  8. The child support assessment is unfair because of the income, earning capacity, property or financial resources of one or both parents.
  9. Your capacity to support the child is significantly reduced because of your duty to maintain another person or child. This also includes the special needs of that person or child or the costs of spending time with or communicating with that person or child.
  10. Your responsibility to support a resident child significantly reduces your capacity to support another child.

Is it Just and Equitable for you to get more child support

Once the Agency is satisfied you have a reason for applying for a change of assessment, they will consider whether a change is just and equitable.

This includes considering:

  • the nature of the duty of a parent to maintain a child
  • the needs of the child
  • the income, earning capacity, property and financial resources of the child
  • the income, property and financial resources of each parent who is a party
  • the earning capacity of each parent who is a party
  • the commitments of each parent who is a party that are necessary to enable the parent to support himself/herself. This also includes any other child or another person that the person has a duty to maintain
  • the direct and indirect costs incurred by the carer entitled to child support in providing care for the child
  • any hardship that would be caused

Whether the change to your child support assessment is otherwise proper

If you have a reason for a change of assessment and the change is considered just and equitable, the Agency must finally consider whether the change is otherwise proper, considering:

  1. the duty of a parent to maintain their child; and
  2. the effect of the change on a carer or the child. This includes any income tested pension or benefits.

If you need any advice on the criteria the Agency will consider, please contact our office.

What to include in your application

You need to give evidence for at least one of the ten reasons to change an assessment.

The following evidence will not be accepted:

  • statements from children
  • anything offensive
  • anything obtained illegally.

What if I am not able to challenge my child support assessment?

The court may make an order, upon application from a party, departing from an administrative assessment (such as a child support assessment).

The court will only be able to make this type of order where one of the following circumstances exists:

  • Where the Agency is unable to make a decision regarding an application for a change of assessment; or
  • Where the parties already have matters before the court. An example would be that there are currently parenting matters being decided by the court.

The court will consider the following in determining whether a departure order should be made:

Step 1Grounds for a departure order have been established
Step 2It is just and equitable to make the orders
Step 3Whether it is otherwise proper to make the orders

We are able to provide you with detailed advice regarding whether you are able to bring an application for a departure order and whether your application is likely to be successful.
 

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FAMILY LAW

Are you paying too much child support, or too little?

If you think you are paying too much child support, or too little, the first thing you’ll need to understand is how child support assessments are conducted and how you can apply for a review.

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In Australia, a parent’s duty to maintain their children occurs through child support payments.

To determine whether a parent is required to pay child support, the Department of Human Services (commonly referred to as the child support Agency ) undertakes an assessment.

The assessment process can be very confusing. This article will help you figure out what the Department will assess when considering how much child support is to be paid by you or the other parent.

Child Support Calculator

Child Support Formulas

The Department uses a number of formulas to figure out the amount of child support you need to pay each day.

The chart below will help you to determine which formula applies to you.

Carers

If you are a carer, you may also be able to claim child support. A different set of formulas (formulas 2, 4, 5 and/or 6) will apply. Please contact our office for further information.

Example 1

If example 1 applies to you, the Department will use formula 1 to assess the child support payable.

Formula 1 is used to create a method statement and ultimately, the child support payable by each parent. Your method statement will outline the following for you and the other parent:

1.Child support income:Parent’s adjusted taxable income less the parent’s self-support amount[1]

A negative result is considered $0.

2.Combined child support income:Add together your and the other parent’s

child support income

3.Income percentage:This is worked out using the figures from items 1 and 2 above.

Parent’s child support income ÷ parent’s combined child support income

4.Percentage of care:The Department will work out your care percentage based on the amount of care you provide.

This steps is easiest if you and the other parent are able to agree how much care you each provide. Eg you care for the child 100 nights a year and the other parent cares for the child the remaining nights per year.

NOTE: this is based on nights, not days.

If you can’t agree, the Department will ask for evidence from both parties and will work the percentage out for you.

5.Cost percentage:This is worked out using the percentage of care figure from item 4.

For example, if your percentage of care is less than 14%, your cost percentage will be nil. If your percentage of care is more than 86%, your cost percentage will be 100%.

6.Child support percentage:Parent’s income percentage less the parent’s cost percentage
7.Costs of the child:The costs of the child are based on the parents’ combined total income using the costs of children table published by the Department each year. [https://www.humanservices.gov.au/individuals/services/child-support/child-support-assessment/how-we-work-out-your-assessment/basic-formula#costsofchildren]

Note: All of these figures are for the child for a single day.

If, based on the above, you have a positive child support percentage the annual rate of child support payable is worked out using the formula:

Parent’s child support percentage for the child for the dayXCosts of the child for the day

To work out what figure this will result in for you, please use the online calculator which can be found at the link below:

https://processing.csa.gov.au/estimator/About.aspx

Example 2

If example 2 applies to you, the Department will use formula 3 to assess the child support payable.

Formula 3 is used to create a method statement, determine the costs of the child, work out your multi-case cap[2] and ultimately, the child support payable by each parent.

The Department will follow the process below:

  1. Complete your method statement which will include the following:
a)Child support income:Parent’s adjusted taxable income less:

(i)                  Parent’s self-support amount

(ii)                Parent’s relevant dependent child amount and

(iii)               Parent’s multi-case allowance

A negative result is considered $0.

b)Combined child support income:See example 1
c)Income percentage:See example 1
d)Percentage of care:See example 1
e)Cost percentage:See example 1
f)Child support percentage:See example 1
g)Costs of the child:See example 1
  1. If you have a positive child support percentage, the following rate is determined:
Parent’s child support percentage for the child for the dayXCosts of the child for the day
  1. Work out each parent‘s multi-case cap.
  2. If you or the other parent have a positive child support percentage, the annual rate of child support payable by the parent :
    1. the rate worked out at point 3 above OR
    2. the parent‘s multi-case cap (whichever is lower).

Again, all of these figures are for the child for a single day.

Child Support Calculator

To work out what figure this will result in for you, please use this child support calculator which can be found at the link below:

https://processing.csa.gov.au/estimator/About.aspx

Day Care and Complications in Determining your Percentage of Child Support

To determine your percentage of care for your child, the Department will consider how many nights in a year you care for your child.

Many care arrangements, particularly for young children, provide for day contact only. It may be the case that you care for the child 5 days a week from 9am until 5pm. So how is this considered?

We recently had to consider this when assisting a client with his parenting matter. The client had a young child (pre-school age) who spent the day with his father (8am to 5pm) three times per week. Although this amounts to a substantial period of time with his father, on a strict interpretation of the legislation, his care percentage would be zero.

The Department declared that the client’s percentage of care for the child was 14% despite not having any overnight time with the child.

This demonstrates that, despite the legislation, the Department will consider the time you spend with the child (if this time is significant), even where this time is not overnight time. This will be assessed on a case by case basis.

What does this mean for you? Should your circumstances mean that you are unable to spend overnight time with your child but you still spend significant time with the child, and the Department assesses your percentage of care of the child as nominal, you should seek a reassessment on that basis. We have an article on how to do this and can provide you with assistance throughout the process.

[1] Self-support amount means 1/3 x annualized MTAWE figure for the relevant June quarter

[2] Multi-case cap is (100% – parent’s cost percentage) x multi-case child costs. The multi-case cap is used to ensure that the paying parent does not pay more child support for a child than they would if all the children lived in the same household. (child support Guide, Version 4.4.2, 12 August 2019, Australian Government).

When Does Child Support End?

In Australia, a parent’s duty to maintain their children occurs through child support payments.

A parent, if assessed as needing to pay child support, is required to maintain the child from the date of the assessment by the Department of Human Services (Department) until the child turns 18.

To find out more about the exceptions which apply as to when you are required to pay child support, please refer to our article on the subject.

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