Most single parents have heard about child support. In recent times, there have been a significant level of controversy surrounding how child support is calculated and whether the current system accommodates modern times. Only recently in 2024, the first time in approximately 20 years, the child support system has been reviewed.
To calculate a child support sum, you can access the child support calculator through the Services Australia website. However, in summary, the following is considered when calculating child support:
- The parents’ adjusted taxable income;
- Combining the incomes and dividing each income by the combined total to work out each parent’s income percentage;
- Calculation of each parent’s percentage of care (there are percentage ranges for this part, similar to a tax bracket); and
- The parents’ costs and the children’s costs (determined by the Care and Cost Table and the Average Weekly Earnings “AWE”).
Almost a third of parents in the child support scheme have a child support debt. This may be due to many reasons, including reluctance to pay, inaccurate child support assessment or provisional assessment (due to the non-filing of a tax return or the inaccuracy of information provided by either parent) or the inability to afford the payment of the child support. This is relevant to the parent liable for the payment of child support.
However, similarly, we are finding that the parent to whom the child support is owed is, in their view, receiving an inadequate amount of child support for this day and age. Not to mention that the AWE which determines average earnings had not been considered in conjunction with inflation and does not factor in what some people now consider to be necessary for modern living, including electronic devices for school; phones and other modern conveniences.
It goes without saying, that calculations have been criticised for not factoring in expenses that should be considered when determining whether a child support payment is reasonable in light of the circumstances, including expenses related to living costs, medical fees, education fees, whether a child has special needs, or is involved in extracurricular activities or the child’s normal standard of living.
The Federal Government has been reviewing the current child support calculations and considering how to keep up with the rapid changes with inflations, changes in schooling fees and extra costs (i.e. electronics, uniforms, before and after school care arrangements, excursion costs, medical costs, back-to-school supplies), blended families, difference between weekday and weekend costs, etc.
It is worth mentioning that as of late, child support services may consider special circumstances and other factors in the calculation of child support. We may even find that the Federal Government will consider applying the same consideration as they do in aged pension, whereby the wages and inflation are considered moving forward.
If you need advice regarding child support and would like to avoid going through the government child support system, at Lynn & Brown, we can provide you with advice regarding a (Private) Binding Child Support Agreement where we consider all factors relating to parenting related costs, or we can assist with child support reviews. We can be contacted on 9375 3411.
About the Author: This article is authored by Asja Mustapha , Asja is a dedicated legal practitioner known for her commitment to excellence and client-focused approach. After completing a Diploma in Law Enforcement in 2011 with high distinctions and graduating with a Bachelor of Laws from Edith Cowan University in 2019, she developed strong analytical skills early in her career, including assisting in one of Australia’s high-profile criminal matters in 2012.
