Financial Support for Children After Separation
When parents separate, the emotional and practical challenges can feel overwhelming - but one of the most important issues for most parents is how children will be financially supported after separation. Australian family law seeks to ensure that both parents continue to contribute to their children’s needs according to the child’s needs and the parent’s capacity to pay.
At Dorter Family Lawyers and Mediators, we help parents understand their legal obligations and entitlements under the Child Support Assessment Act 1989 (Cth) and related family law provisions, so they can focus on what matters most - the best interests of their children.
What Is Child Support?
Child support is the financial contribution that one parent pays to the other (or occasionally to a third party or carer) to assist with the costs of raising a child (or children).
It is governed by the Child Support (Assessment) Act 1989 (Cth) and administered by Services Australia (Child Support).
Child support is intended to help the eligible parent cover some or all of the following:
everyday living expenses (food, clothing, housing, transport),
school fees, uniforms, and extracurricular activities,
medical, dental and health-related costs,
and, where relevant, childcare costs.
Both parents have a legal duty to support their children, regardless of whether they were married, in a de facto relationship, or never lived together.
How Child Support Is Assessed
Services Australia uses a standard formula to calculate how much child support should be paid.
This formula considers several factors, including:
Each parent’s income;
The number of children;
The ages of the children;
The time each parent cares for the children (measured as the percentage of nights per year); and
The costs of raising children at different income levels.
The aim of the formula is to ensure that both parents contribute in proportion to their financial capacity and their share of care.
You can estimate likely child support payments using the Child Support Estimator available on the Services Australia website.
Private Child Support Agreements
Parents can also make their own arrangements outside the standard assessment issued by Services Australia (Child Support) by entering into a private child support agreement. This is often negotiated as part of a property settlement between parents.
There are two types of private child support agreements parents can enter into:
1. Limited Child Support Agreement
Must be based on an existing administrative assessment by Services Australia (Child Support).
Allows flexibility for parents to agree on payments (which may be more or less than the assessed amount).
It ends after three years or if the child support assessment changes significantly.
2. Binding Child Support Agreement
A formal agreement that can be made with or without a prior assessment.
Both parents must obtain independent legal advice before signing the Binding Child Support Agreement.
It can include provision for periodic payments, lump sum payments, or direct payment of expenses such as school fees, day care fees or health insurance.
Binding Child Support Agreements are binding until the child turns 18 (and can be extended until when the child completes their secondary schooling) and can only be set aside by a Court in limited circumstances (such as fraud, duress, or exceptional changes in circumstances).
What If the Standard Formula Doesn’t Reflect Your Situation?
Sometimes, the administrative assessment does not capture the true costs or realities of your family circumstances.
In these cases, a parent may complete an Application to Change the Assessment in Special Circumstances under the Child Support (Assessment) Act 1989 (Cth).
Common examples of situations where an Application to Change Assessment in Special Circumstances may be filed are when there are:
high medical or educational costs for a child;
significant travel expenses for a parent to spend time with the child;
private school or extracurricular commitments agreed upon before separation;
one parent’s low income is artificially reduced (e.g., through a family trust or company).
The change of assessment process can be complex, requiring detailed financial information and supporting evidence. Legal advice can help ensure your application (or response) is clear and properly supported.
Child Support and the Family Court
While Services Australia (Child Support) generally manages child support matters, the Federal Circuit and Family Court of Australia can become involved where:
a dispute arises about the validity or enforcement of a private child support agreement,
one party seeks to set aside a binding child support agreement,
arrears or unpaid child support need to be recovered through court enforcement, or
a parent seeks to include child support provisions within broader parenting or financial proceedings.
The Court’s role is generally limited, as the child support system is designed to be administrative - but Court intervention can still be necessary in complex or high-conflict matters.
Adult Child Maintenance
In some circumstances, a parent may be required to provide financial support for a child over 18, particularly if the young person:
is completing secondary or tertiary education, or
has a disability that prevents them from supporting themselves.
These arrangements are known as adult child maintenance orders and are made by the Court under the Family Law Act 1975 (Cth).
Practical Steps for Parents
Document your parenting and care arrangements, as the level of care affects the child support calculation.
Keep records of major expenses (school fees, health, travel).
Communicate clearly and in writing about proposed payments.
Seek legal advice before signing any private child support agreement.
Review your arrangements regularly, as circumstances change over time.
How Dorter Family Lawyers and Mediators Can Help
Our family lawyers in North Sydney on Sydney’s Lower North Shore can guide you through all aspects of child support and financial arrangements after separation - including:
navigating or challenging a Services Australia (Child Support) assessment,
drafting or reviewing a Limited Child Support Agreement or a Binding Child Support Agreement;
assisting you prepare the necessary documents to lodge an Application to Change Assessment in Special Circumstances with Services Australia (Child Support).
ensuring your children’s financial needs are protected long-term when negotiating a property settlement.
We take a child-focused, practical and supportive approach to resolving these issues so you can move forward with confidence.
Get in Touch
If you have recently separated or need advice about financial support for your children, please contact Dorter Family Lawyers and Mediators on (02) 9929 8840 or contact us here.
