The Family Court does not generally have the power to order child support maintenance for children.
Maintenance for children is dealt with by the Child Support Agency (‘CSA’). All applications for child support (child maintenance) are by way of an application to the CSA. If you are not satisfied with an assessment that has been made using a formula set out in the legislation, then you may seek a review of the assessment with the CSA. If you are not satisfied with the Review Officer’s report, then you can lodge an appeal with the CSA and, if you are not satisfied with the decisions made on the appeal, you can then apply to the Family Court for a variation of the assessment that has been made.
If you and your partner reach your own decisions about how child maintenance is to be applied and paid, you can enter into a child support agreement. Once drafted by your lawyers, the agreement can then be lodged with the CSA.
The CSA will accept an agreement if you and your partner are gainfully employed and not receiving pensions or government assistance (apart from child assistance). Child support payments will then be paid in accordance with the terms of that agreement. If either you or your partner wants to vary the child support agreement in any way, this can only be done by making an application to the Family Court. The CSA does not have the power to vary or alter a child support agreement.
Changes to the Child Support Scheme
In 2006, the Federal Government announced a number of changes that had to be made to child support agreements within three years. The changes were made to adapt child support arrangements to adequately reflect changes in the circumstances of Australian families. The overall goal of the federal government in changing the law was to induce reluctant parents to take responsibility for the upbringing of their children, by providing adequate financial support.
Capacity to pay vs. capacity to earn
There are two basic categories of applications to change an assessment of child support, these are, ‘capacity to pay and ‘capacity to earn.
Capacity to Pay
Decisions based on a capacity to pay usually involve arguments that the parent required to pay child support (‘the Payer’) has earned more than they have disclosed to the CSA. In these circumstances, the parent receiving child support payments (‘the Payee’) usually alleges that the Payer has minimized their taxable income, using methods such as company or trust accounting.