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How is Child Support Calculated in Australia?

how is child support calculated | Justice Family Lawyers

Parents are responsible for the financial support of their child or children. This is the case for birth parents, adoptive parents and people who have become parents as a result of assisted conception.

Financial responsibility for a child does not change in the event that the parents separate or divorce, where the child lives, the amount of time they spend with one parent or the remarriage of one or both parents.

Child Support Calculation

A formula is used to calculate child support payments.

The formula is based on the income available to a parent. This adjusted taxable income minuses the cost of ‘self support’ and the number of other dependent children the parent is liable to support, to calculate the Child Support Payable for a particular child.

A breakdown of the Basic Formula is available from the Department of Human Services.

The formula, in calculating the Child Support Payable, will take into account the time that the child spends with each parent. The Department of Human Services also bases the Basic Formula on research into the costs of raising children to determine the exact amount payable for a particular dependent Child.

The DHS collaborates with the ATO to maintain fairness and accuracy. This partnership ensures that the most recent and accurate income details are used in the assessment process.

Factors That DHS Consider In Calculating Child Support

Determining how much child support should be paid is more than a random guess. A system in place looks at a few key things to decide the right amount.

  • Parents’ Incomes: How much both parents earn is looked at. This helps figure out how much each parent can reasonably contribute.
  • Care Contributions: It’s not just about money. How much time and care each parent gives is also essential.
  • Child’s Specific Needs: Every child is different. Some might have medical needs or special schooling, which can affect the amount.

So, child support is a mix of earnings, care, and the child’s needs. With these factors in the spotlight, it makes sense why some parents pay more or less.

Also read: Child Support and Bankruptcy: 7 Key Points You Need to Know

Ready to face child support matters with confidence?

Contact Justice Family Lawyers for personalized guidance and expert advice. We’re here to help you ensure your child’s financial well-being.

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