Quickly find out how much child support to pay or receive. Do you have a child support case in Australia? This calculator provides a reliable estimate for payments based on incomes and care arrangements.
How Child Support is Calculated in Australia
Child support in Australia is based on a formula that considers each parent’s income, the number of children, and the care provided.
- Each parent’s “Child Support Income” is calculated from their taxable income by subtracting a self-support amount.
- The combined incomes of the parents are used to determine the “Costs of the Children,” which also depends on the number and ages of the children.
- The “Income %” is calculated by dividing each parent’s income by the combined total. This figure shows how much of the child’s costs each parent should cover.
- The “Care %” reflects the amount of time each parent spends with the children and determines their “Cost %,” or credit for expenses.
- Child support is calculated by subtracting the Cost % from the Income %.
If your Income % is higher than your Cost %, you pay child support. If your Cost % is higher, you receive support. This method ensures child support is based on financial capacity and care provided.
Is the Child Support Estimator Accurate?
The child support estimator is accurate because it follows the formula outlined in the Child Support (Assessment) Act. It factors in each parent’s adjusted taxable income, percentage of care, and the costs of raising children, ensuring the results align with Australian legal requirements.
However, the estimator is designed for single cases where a parent has child support obligations for children from one relationship. It doesn’t account for complex situations like supporting children from multiple relationships, where additional rules like the “multi-case allowance” come into play.
Keep in mind there may be a slight lag between updates to the cost of children tables and the estimator, potentially causing minor inaccuracies. Despite this, the estimator remains a reliable tool for most parents, though the final amounts will be determined by Services Australia based on the information provided.
What Does Child Support Cover?
Child support in Australia is intended to cover essential child-related expenses, such as housing, food, and clothing. The receiving parent has the discretion to use these funds as they see fit, with no obligation to spend the money directly on the child.
Certain significant expenses like private school fees or orthodontic treatment are usually not included in regular child support payments. They often require separate agreements between the parents.
Private school fees are not included in standard child support calculations. The same applies to other large extraordinary expenses, such as orthodontic dental treatment.
Learning Lab, Child Support Calculator: How Much?
When parents cannot agree on how to manage these larger costs, they can seek a Change of Assessment (COA) through Services Australia. This process can adjust child support payments to account for substantial expenses, such as private schooling, depending on the circumstances and any prior agreements.
Child support aims to create financial balance between parents in covering their children’s day-to-day needs. While the system provides flexibility, a fair practice is for each parent to contribute to expenses in proportion to the amount of care they provide. Open communication and mutual agreement are encouraged to handle spending on your child or children.