Limited child support agreements in Australia are guided by legislation. In fact, 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. Also, it 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 and limited child support agreements. Once parents have made a child support agreement, either parent can apply to the Registrar to have it accepted.
Limited child support agreements in Australia allow parents some flexibility to determine their own child support arrangements. Also, limited child support agreements do not require the parties to have received legal advice before entering into the agreement.
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For a limited child support agreement to be accepted by the Registrar, there must be a child support administrative assessment in place. It should be at the time an application for acceptance of the limited agreement is received by the Registrar. Also, for the agreement to be accepted, the agreement must be for at least the annual rate of child support. That would otherwise be payable under the administrative assessment. In some cases, it is payable by the same parent as under the assessment.
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Some agreement includes the provision of an ‘in kind’ benefit. When this is the case, the Registrar may need to assign a value to that benefit. This is to determine whether the amount in the agreement is at least the annual rate of child support that would otherwise be payable under the administrative assessment.
If, when considering the annual rate or amount of child support that would otherwise be payable by the parent under the administrative assessment, there is a decision pending (e.g. a change in care or income). This would take effect prior to the day that the agreement would commence. This can also be the applicable rate or amount that applies under the CSA Act. Sometimes, it will be the rate or amount under the amended assessment. The Registrar will therefore finalise the pended decision before applying the test under the CSA Act.
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Limited agreements cannot usually reverse the paying and receiving roles of the parents. This is because as the annual rate payable by the paying parent under the agreement must be at least the rate payable by that parent under the administrative assessment.
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If each parent has the paying role in relation to one of their children, because of different care arrangements for the children, an agreement is made in relation to one of the children. This may cause the overall roles to reverse after the higher agreement amount is offset against the assessment amount for the other child under the CSA Act.
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You cannot vary a limited child support agreement cannot. To change a limited child support agreement, the agreement must be terminated. Also, a new limited child support agreement can replace the terminated one.Â
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A document that forms a property division order, parenting plan, maintenance agreement or financial agreement under the Family Law Act can also be a limited child support agreement for child support purposes. This is when if it complies with the necessary requirements in the CSA Act.
AussieLegal offers a number of legal kits and paralegal services, like helping you with limited 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.
