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Difference between Limited And Binding Child Support Agreements

Written by Leanne Abela
4 March 2024

Parents can negotiate, agree and produce in writing an agreement about the future financial support of their children. Any such agreement must be in writing and must be:

1. In writing; and
2. Signed by all parties.

There are two types of agreements namely:

A. Limited Child Support Agreements:

a. There must be an administrative assessment of child support in place;
b. The annual rate of child support payable under the Agreement must be equal to, or greater than, the annual rate of child support payable under the Assessment of child support by Services Australia;
c. Parties to the Limited Child Support Agreement are not required to obtain legal advice but obviously can do so if they wish;
d. It can registered and accepted by the Child Support Agency/Services Australia.’

B. Binding Child Support Agreements:

a. There is no necessity for an administrative assessment for child support to be in place;
b. Child support payable does not need to be equal to, or greater than that assessed by Services Australia;
c. Each party must obtain separate and independent legal advice and lawyers must sign certificates attached to the agreement for it to be binding.

A Limited Child Support Agreement or a Binding Child Support Agreement can be lodged for acceptance and accepted by the Child Support Agency/Services Australia. Specific eligibility requirements must be met including:

i. The Liable Parent must be a resident of Australia or reciprocating jurisdiction;
ii. Parties to the agreement must not be living together in a domestic relationship;
iii. The child/children must be eligible children which means under the age of 18 years, unmarried and not living in a domestic de facto relationship.
iv. The child/children must be Australian citizens or usually live in Australia or in a reciprocating jurisdiction.

Services Australia will refuse to accept an agreement if:

(a). It contains a provision that child support payable to a person who has less than 35% care of the child/children;
(b). Assessment commences with an application from an overseas authority of a reciprocating jurisdiction and the overseas authority of a reciprocating jurisdiction does not support the acceptance of the agreement.

Information

Your online account for child support can be accessed through MyGov

Reciprocating Jurisdictions – Services Australia or call 131 272.

International customers can call +61 131 272 or +61 3 6216 0864

Services Australia.gov.au.childsupport

To speak to Services Australia in your language call 131 450.

For Hearing/Speech Impairment customers can contact TTY Service free call 1800 810 586

Return Limited or Binding Child Support Agreements to online or express plus child support mobile app By Fax: 1300 309 949 or for International customers +61 362 160 899 or by post to:

Services Australia
GPO BOX 9815
Melbourne VIC 3001
Australia

Pearsons Lawyers

This is general advice only. Pearsons Lawyers have a team of specialist family lawyers who can provide timely and accurate advice on all matters that need to be dealt with following a separation including parenting and property matters. To arrange your free initial consultation contact Pearsons Lawyers today on 1300 699 688 and “know where you stand”.

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