Child Support Agreement Template
What is a child support agreement?
A child support agreement is a private agreement between parents about child support payments. It is governed by the Child Support (Assessment) Act 1989 (Cth) and provides an alternative to relying solely on the Child Support Agency (Services Australia) administrative assessment.
There are two types of child support agreement recognised under the Act: a binding child support agreement and a limited child support agreement. Both allow parents to agree on the amount of child support payable, payment methods, and how additional expenses such as school fees and medical costs are shared.
Binding vs limited child support agreement
The two types of child support agreement differ in their requirements, flexibility, and termination provisions:
Binding child support agreement: Both parties must receive independent legal advice (ILA) before signing. The agreed amount can be more or less than the assessed amount, giving parents greater flexibility. A binding agreement can only be terminated by entering into a new binding agreement or by court order.
Limited child support agreement: Does not require independent legal advice. However, the agreed amount must be at least the current assessed amount - it cannot be lower. A limited agreement can be terminated by either party giving 3 months' written notice, and it automatically ends after 3 years.
In summary, binding agreements offer more flexibility on the amount but require ILA, while limited agreements are simpler to execute but the amount can only be equal to or above the assessed rate.
What does a child support agreement cover?
A well-drafted child support agreement typically addresses the following matters:
- The amount of child support payable
- Payment frequency (weekly, fortnightly, monthly)
- Payment method (direct deposit, bank transfer)
- Additional expenses (school fees, medical, extracurricular)
- How expenses are shared (percentage split)
- Duration of the agreement
- Review and variation provisions
Child support assessment - how is the amount calculated?
Services Australia uses a formula to calculate the administrative assessment of child support. The formula takes into account:
- Both parents' incomes
- The number of children
- The age of the children
- The percentage of care each parent provides
- Each parent's self-support amount
The assessed amount serves as the baseline for a limited agreement - the agreed amount cannot be lower than the assessment. A binding agreement, on the other hand, can vary from the assessed amount and may be set higher or lower depending on the parties' circumstances.
You can use the Services Australia child support estimator to get an indicative assessment before preparing your agreement.
Requirements for a binding child support agreement
For a binding child support agreement to be valid, the following requirements must be met:
- The agreement must be in writing and signed by both parties.
- Both parties must receive independent legal advice from separate lawyers.
- Each lawyer must sign a certificate confirming that advice was given, which is annexed to the agreement.
- The agreement may be registered with Services Australia if the parties wish to use the agency's collection and enforcement services.
If you need affordable independent legal advice for signing your agreement, visit our panel of lawyers who provide fixed-fee ILA certificates.
Requirements for a limited child support agreement
A limited child support agreement has fewer procedural requirements:
- The agreement must be in writing and signed by both parties.
- It does not require independent legal advice.
- The agreed amount must be at least the current assessed amount.
- A current administrative assessment must be in force at the time the agreement is made.
- Either party can terminate the agreement by giving 3 months' written notice.
When to choose each type
Choose a binding agreement if:
- You want to agree on an amount different from the assessment (higher or lower)
- You want a long-term, stable arrangement that cannot be easily terminated
- You are willing to obtain independent legal advice
Choose a limited agreement if:
- You are happy with the assessed amount or wish to agree on a higher amount
- You want a simpler process without the need for lawyers
- You want the flexibility to terminate the agreement with notice
Frequently asked questions
Can we agree on less than the assessed amount?
Only with a binding child support agreement. A limited agreement must be for at least the assessed amount. If you want to agree on a lower amount, both parties will need to obtain independent legal advice and enter into a binding agreement.
What if my income changes?
A limited agreement automatically ends if a new assessment is made that differs by more than 15%. A binding agreement remains in force regardless of income changes unless it is varied by a new binding agreement or set aside by a court order.
Do we need to register with Services Australia?
Registration is optional but recommended. Registering the agreement with Services Australia provides administrative enforcement if payments are not made. An unregistered agreement is still legally valid, but enforcement would require court action.
Can child support be included in a BFA?
No. Child support is governed by the Child Support (Assessment) Act 1989, not the Family Law Act. It must be dealt with in a separate child support agreement and cannot form part of a binding financial agreement.
Until what age is child support payable?
Child support generally ends when the child turns 18, completes secondary school (whichever is later), or marries or enters a de facto relationship. In some cases, a court may extend support beyond these milestones, but this is uncommon.
What about school fees and extras?
The agreement can specify how additional expenses - including school fees, medical costs, extracurricular activities, and uniforms - are shared between parents. This is separate from the base child support amount and can be expressed as a percentage split or fixed contribution.