Determining the amount of child support owed to a party is difficult and complex. Before 1st October 1989, a discretionary method was undertaken to calculate the amount of child support to be paid, under the Family Law Act 1975 (Cth), however, after 1st October when the Child Support (Assessment) Act 1989 (Cth) came into effect, a formula is followed to determine child support.
For a general indication, it is best to obtain an estimate from the Child Support Agency website which can be accessed through this link http://www.csa.gov.au/estimator/index.aspx.
The main considerations of the court in determining the amount of child support to be paid include the capacity of each parent to earn, above the level required for self-support, the ages of the children, the fact that parents should share in costs, the combination of the level of care (as a percentage), the level of the parents income, the cost of raising each child and any other child in the payer’s care.
However, there is an 8 step formula outlined in section 35 of the Child Support (Assessment) Act 1989 (Cth) which is simplified and includes most of the considerations. The steps are as follows:
1) Consider the child support income of the person (other child support assessments and dependent children are considered)
2) Consider the combined child support income of the parents
3) Consider the income percentage
4) Consider the care percentage
5) Consider the cost percentage
6) Consider the child support percentage (will be positive or negative. If your child support percentage is positive, then you need to pay child support to the other parent).
7) Work out the cost of raising the child
8) Work out the child support amount.
Further considerations reflect the flexibility of the process of determining child support, and these include shared care; provisions for high-income-payers; payers with other dependent children to support; and the levels of involvement of the Child Support Agency.
How can Prime Lawyers help you?
The family lawyers at Prime Lawyers have a great wealth of experience in child custody issues. If you are unsure how the child support amount that you are paying or receiving was calculated, we can assist you and explain every step of the process to you.