Private Agreements vs. Child Support Agency Assessments — What’s the Difference?

When it comes to child support in Australia, parents can choose how they want to manage payments. Some prefer a government-managed assessment, while others agree to a private arrangement. Both options are legal — but they come with different levels of flexibility, responsibility, and protection.

1. Child Support Agency (Services Australia) Assessment

This is the default option most parents use.

How it works:

• You apply through Services Australia, which calculates the payment amount using a standard formula based on each parent’s income, care percentage and number of children.

• Payments can be collected and transferred via Child Support Collect, or made directly between parents (Private Collect) while still being based on the agency’s assessment.

Pros:

• Government oversight and enforcement (if payments aren’t made)

• Transparent and consistent calculations

• Helpful for parents who can’t agree on terms

Cons:

• Less flexibility in how payments are made

• Can feel formal or impersonal

• Assessments may not reflect individual agreements (e.g. who pays for school or extracurriculars)

2. Private Child Support Agreements

This option allows parents to manage child support without — or alongside — an official assessment.

There are two main types:

➤ Limited Agreements:

• Based on a Services Australia assessment

• Must be in writing and signed by both parents

• Can be ended by either parent after 3 years or if income changes significantly

➤ Binding Agreements:

• Can be for any amount, even different to the agency's calculation

• Must include legal advice for both parents before signing

• Legally enforceable and harder to change

Pros:

• More control and flexibility (e.g. payments can cover school fees, health insurance, or other agreed expenses)

• May reduce conflict if both parents agree

Cons:

• Less protection if one parent doesn’t stick to the agreement (especially informal ones)

• Binding agreements are harder to amend

• Must be carefully written to avoid misunderstandings

Which Option Is Best?

It depends on your situation. If you and the other parent can communicate well and agree on terms, a private agreement might work. But if there’s conflict, confusion or a history of missed payments, a government-managed arrangement may offer more security.

Call us to help decide which is right for you.