BINDING CHILD SUPPORT AGREEMENTS IN AUSTRALIA

Binding child support agreements in Australia are supported by the law. The CSA Act sets out the requirements for a child support agreement.

The child support legislation allows parents to reach agreement on the amount of child support to be paid. A child support agreement has to meet the requirements of the legislation and has to include matters that can be dealt with in a child support agreement. From 1 July 2008, there are two types of child support agreements. These are the binding child support agreements in Australia and limited child support agreements. Once parents have made a child support agreement, either parent can apply to the Registrar to have it accepted.

A child support agreement must be between:
  • 2 parents of a child who would be able to make an application properly for administrative assessment of child support for the child in relation to whom the agreement is, or
  • One or both parents of a child, and a non-parent carer of the child, who would be able to properly make an application for administrative assessment of child support for the child in relation to whom the agreement is made. If both parents are assessed for child support, then they must both be parties to the agreement.
 
In determining whether an agreement complies with the legislation, the Registrar may act on the basis of the application for acceptance of the agreement. It can also be the documents accompanying the application and the agreement itself. However, they are not required to conduct any inquiries or investigations into the matter.
Binding Child Support Agreements

Binding child support agreements in Australia allows parents to make binding financial agreements about child support. Also, binding child support agreements operate in a similar manner to financial agreements. This happens in instances where separating parents might make in relation to property, superannuation, and spousal maintenance.

 

Each party to a binding child support agreement must have received independent legal advice before entering the agreement. Also, parties must also receive independent legal advice before terminating the agreement. This legal advice must be provided by a legal practitioner who has been admitted by the Supreme Court of a state or territory of Australia and holds a current practicing certificate. Legal advice will not be considered independent in circumstances where:

 

  • One party (as a qualified legal practitioner) has provided legal advice to the other party to the agreement,
  • One party (as a qualified legal practitioner) has provided legal advice to themselves, or
  • The same legal practitioner has provided legal advice to both parties.

In such cases, the Registrar will determine that the agreement is not a binding child support agreement under the CSA Act. The parent who asked for the agreement to be accepted may wish to withdraw the application for acceptance. However, they can re-apply once independent legal advice has been obtained. Alternatively, the applicant could ask for the agreement to be accepted as a limited agreement. The rules for the acceptance of a limited agreement are different. This may prevent the acceptance of the agreement.

A binding child support agreement must:
  • Be in writing, and signed by both parents or the parent/s and eligible non-parent carer,
  • Include a statement that each party has received independent legal advice. It should also include the effect and advantages and/or disadvantages of the agreement, before it was signed, and
  • Include an annexure, for each of the parties to the agreement, signed by the person who provided the legal advice. This is to certify that the advice was provided.

There is generally no requirement for an administrative assessment to be in place prior to the making or acceptance of a binding child support agreement. However, this exempts cases such as binding agreements that create lump sum payment obligations under the CSA Act. Parties can make child support agreement if they are the parents of a child. This can also be the case between the parents and any non-parent carer eligible to be paid child support. If there is no existing administrative assessment, the Registrar must also be satisfied that the parties to the agreement are parents or eligible non-parent carers before a binding agreement can be accepted.

A binding child support agreement cannot be varied. To change a binding child support agreement, the agreement must be terminated. Then, a new binding child support agreement must replace the ended one.

A document that forms a property division order, parenting plan, maintenance agreement or financial agreement under the Family Law Act can also be a binding child support agreement for child support purposes if it complies with the necessary requirements of the CSA Act.

Transitional Agreements

These are child support agreements that were made and accepted by the Registrar prior to 1 July 2008 and continue to have an effect from 1 July 2008. Also, these agreements are considered binding child support agreements. Some different rules apply to these agreements as compared with the binding child support agreements discussed above.

 

Transitional agreements also have different requirements for termination from other binding child support agreements.

Termination Agreements

A termination agreement is a binding child support agreement entered into by the parties for the specific purpose of terminating the effect of an existing binding child support agreement.

Know what you can do

AussieLegal offers a number of legal kits and paralegal services, like helping you with binding child support agreements in Australia and others that are specifically designed to help family members make a personal application and save thousands in legal fees.

Reach out on 1300 728 200 to discuss your situation with one of our consultants.

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