Breach of Binding Child Support Agreement: 5 Key Points

Child support agreements are legally binding. When one parent violates this agreement, the consequences can be severe. 

This blog post will explore what constitutes a breach of a child support agreement, the options available to the custodial parent, and the potential repercussions for the parent who fails to provide support.

Understanding child support agreement between parents

A child support agreement is a formal arrangement between parents that outlines how they will financially support their child or children.

This agreement can be a Binding Child Support Agreement (registered with the Child Support Agency and legally enforceable), a Limited Child Support Agreement (similar but with a set time or issue focus), or a less formal private agreement. 

These agreements provide clarity, stability, and protection for the child’s financial well-being. They usually include the amount and frequency of child support payments, the payment method, provisions for additional expenses, and procedures for reviewing the agreement in the future. 

What counts as a breach of a binding child support agreement? 

Here’s a breakdown of what constitutes a breach of a binding child support agreement in Australia:

Types of Breaches

1. Non-payment of Child Support: The most common breach is simply not paying the agreed-upon child support amount. This can be a single missed payment or consistent failure to pay.
2. Late Payments: Even if payments are eventually made, consistent late fees can be considered a breach, mainly if they cause financial hardship for the receiving parent.
3. Underpayment: A breach occurs when you pay less than the agreed-upon amount without a valid reason or a formal agreement modification.
4. Failure to Pay Additional Expenses: If the agreement includes provisions for additional expenses like school fees, medical costs, or extracurricular activities, not paying these can also be a breach.
5. Non-disclosure of Income Changes: If the agreement is based on income and the paying parent’s income changes significantly without disclosing this information, it may constitute a breach.

Important Considerations:

• Formal Agreement: Ensure you have a formal, binding agreement. This could be a court order or a formal agreement registered with the Child Support Agency.
• Modifications: Changes in life circumstances (like loss of employment) might warrant modifying the agreement. It’s essential to follow the correct modification procedures, or you could be in breach even if your reason for non-payment seems valid.

Steps for Binding Child Support Agreement Enforcement

1. Communication: First, attempt to resolve the issue directly with the other party. Sometimes, non-compliance may be due to misunderstandings or temporary financial hardship.
2. Legal Advice: If direct communication fails, seek legal advice. A lawyer specialising in family law can guide your rights and the next steps, including the possibility of court action to enforce the agreement.
3. Services Australia Involvement: While Services Australia (the government agency responsible for child support) generally does not enforce BCSAs directly, they can be involved if both parties agree to transfer the payment handling to them. However, for enforcement, you’ll likely need to pursue legal action.
4. Court Application: You may apply to a family law court for orders to enforce the agreement. The court can make orders for payment of outstanding amounts and possibly for penalties against the non-compliant party.
5. Enforcement Measures: Once a court order is obtained, several enforcement measures are available, including wage garnishment, property seizure, and financial penalties.

How do I report a breach of a child support agreement?

In Australia, here’s how you report a breach of a child support agreement:

1. Contact the Other Parent

First, it’s often recommended that the issue be resolved directly with the other parent if possible. Sometimes, breaches occur due to misunderstandings or temporary difficulties. Communicating directly might lead to a quicker resolution.

2. Contact the Child Support Agency (CSA)

If your child support arrangement is managed through the Child Support Agency (now under Services Australia), and there’s a failure to comply with the agreement:

• Report the Issue: You can report the breach by contacting Services Australia directly. They offer a range of methods to get in touch, including phone lines specifically for child support matters.
• Provide Details: Be prepared to provide specific details about the breach, including dates, amounts owed, and any communication you’ve had with the other parent about the issue.
• Enforcement Measures: Services Australia has enforcement measures they can implement to collect outstanding child support payments. These measures can include garnishing wages, intercepting tax refunds, and even legal action for severe cases.

You can report a breach by:

• Online: Log into your myGov account (linked to the CSA) and access the Child Support section to report a breach.
• Phone: Call the CSA’s general enquiries line on 131 272.
• In Person: Locate your nearest CSA office.

3. Provide Necessary Information

Be prepared to provide the following:

• Your and the other parent’s details (name, address, contact information).
• Your child support case number (if you have one).
• Details of the binding agreement (whether it’s a court order or a formal agreement registered with the CSA).
• Specifics of the breach (missed payments, late payments, underpayments, etc.) including dates and amounts.
• Any evidence you have (bank statements, communication records).

4. The CSA’s Action

Once you report a breach, the CSA will generally:

• Contact the paying parent: Seek an explanation and attempt to arrange payment.
• Enforcement measures: If the paying parent remains non-compliant, the CSA has several enforcement powers, including:
  • Garnishing wages directly from the employer.
  • Intercepting tax refunds.
  • Seizing assets.
  • Placing restrictions on licenses or travel.
  • Initiating legal proceedings in severe cases.

5. Legal Advice

If the issue cannot be resolved through direct communication or with the help of Services Australia, it might be necessary to seek legal advice. A child support lawyer can provide guidance based on your specific circumstances, which may involve going to court to enforce the agreement.

What are the consequences of breaching a child support agreement?

Breaching a child support agreement can have serious consequences. Here’s a breakdown of what a parent who fails to uphold their obligations might face:

Consequences from the Child Support Agency (CSA)

• Debt Accumulation: The unpaid child support accumulates as a debt, even if no action is taken immediately.
• Penalties and Interest: The CSA can impose late payment penalties and interest charges on the outstanding debt, making it even more difficult to pay off.
• Garnishing of Wages: The CSA can order the parent’s employer to deduct child support payments directly from their wages.
• Interception of Tax Refunds: The CSA can intercept any tax refunds the parent is owed and apply them to the child support debt.
• Asset Seizure: In some cases, the CSA may seize and sell the parent’s assets to recover the debt.
• Travel Restrictions: The CSA can prevent the parent from leaving Australia until the debt is resolved.

Court-Imposed Consequences

• Contempt of Court: A breach of agreements established as court orders could be considered contempt of court, leading to fines or even imprisonment in severe cases.
• Variation of Parenting Orders: The court might change existing parenting orders if a parent consistently breaches the child support agreement, potentially affecting their time with the child.
• Legal Costs: You may be able to seek reimbursement for legal costs incurred from pursuing enforcement actions against the breaching parent.

Additional Considerations

• Impact on Credit Score: Accumulating child support debt can negatively impact a person’s credit score, making it harder to obtain loans or credit in the future.
• Emotional Stress: Breaching a child support agreement can cause significant emotional stress and strain relationships between parents and children.

Need Legal Assistance with a Breach of Binding Child Support Agreement?

Are you facing challenges due to a breach of your Binding Child Support Agreement? At Justice Family Lawyers, we understand these disputes’ complexities and emotional toll. Our expert team is dedicated to ensuring that your rights are protected and that you receive the support your child deserves. Don’t navigate this difficult time alone; let us help you secure a fair resolution. Contact Justice Family Lawyers today for a consultation.