What Is Child Support and How Is It Calculated in Australia?
Child support is a legal arrangement designed to help separated parents share the cost of raising their children. In Australia, it ensures that children continue to receive financial support from both parents, even if they no longer live together.
Who Pays and Who Receives?
Child support is typically paid by the parent who spends less time caring for the child (the “paying parent”) to the one who provides more day-to-day care (the “receiving parent”). However, the actual amount depends on several factors, not just time spent with the child.
How Is It Calculated?
The Australian Government uses a formula to calculate how much child support should be paid. This formula takes into account:
Each parent's income (after a basic living allowance is deducted)
How much care each parent provides (measured in nights per year)
The number and ages of the children
The formula is based on the principle that both parents should contribute to the financial costs of raising their children, in proportion to their income and level of care.
A Simple Example:
If both parents earn a similar income but one parent cares for the child 70% of the time, the other parent may be required to pay support to balance the costs of care.
Can Parents Make Their Own Arrangements?
Yes — parents can make a private agreement on how child support is paid, either in cash or in kind (e.g., covering school fees or medical costs). These arrangements can be formalised through a binding child support agreement, or managed informally if both parents agree.
What If Circumstances Change?
Child support assessments can be reviewed if things change — for example, a parent’s income goes up or down, or care arrangements shift. It’s important to keep Services Australia updated to ensure the right amount is paid.
Key Takeaway
Child support is not just about legal obligations — it’s about ensuring children have the stability and resources they need to thrive after separation. Knowing how it’s calculated helps parents make informed decisions and avoid unnecessary conflict.
Talk to us if you would like a more thorough understanding of what arrangements might be best for you.