The cost of child support varies depending on a variety of criteria. The Department of Human Services (DHS) manages child support. They use a formula to calculate the amount you will have to pay. If you do not believe that the calculated child support assessment reflects your needs, means or circumstances, you can apply to change your child support assessment.
It is also possible to manage your child support without the assistance of the DHS. If you choose to self-manage, you and the other person decide how much to pay for child support, when to pay it and how to make the payments. The DHS basic child support formula is in eight steps. It is based on both parents’ child support income, which is their income after subtractions for self-support and any other relevant dependent allowance.
The child support incomes are then added, and each parent’s percentage of the combined total is calculated. The parents’ percentage of care is also used in the child support formula. The percentage of care relates to how many nights per year each parent looks after the child.
This is then used to establish a percentage of cost, which means the percentage they contribute to the financial support of the child. In the formula, the percentage of cost is subtracted from the income percentage to establish what is called the child support percentage. If the result is a negative percentage, this is the parent who will receive child support.
If it is a positive percentage, this is the parent who will pay child support. For the latter, the cost of the child is then calculated according to the DHS’s evaluation of the cost of raising children in Australia as compared to the income of the parent in question. The positive child support percentage is multiplied by the total amount of child support payable to establish the cost of child support.