Child support in Australia usually covers the everyday costs of raising a child, but it does not automatically extend to school fees, health or extracurricular activities unless parents agree otherwise.
What Child Support Does Not Cover
Although the child support system provides regular child support payments, there are limits on what those payments are intended to include, unless you have a private agreement in place that addresses items below.
Some of the more common exclusions are:
- Private or independent school fees: Standard child support does not cover tuition, camp, uniforms and books unless parents make a formal agreement to share these costs.
- Extracurricular activities: Costs for sport, music lessons, clubs or holiday camps are typically excluded.
- Luxury items or entertainment: Items such as electronic devices, holidays or designer clothing are not included.
- High medical expenses: Major health costs, including health insurance, orthodontics, private surgeries or specialised therapies, physiotherapy, osteotherapy etc are generally not covered unless separately agreed or ordered by a court.
In other words, non-custodial parent contributions through child support generally stop at essential expenses and are assessed by Services Australia. Additional costs require separate negotiation, formal agreements or court orders.
What Does Child Support Cover?
Child support funds are primarily meant for a child’s regular and essential needs, including the costs of a parent maintaining the household the child lives in.
This includes:
- Living expenses such as food, clothing and rent or mortgage payments
- Household costs such as electricity, water, gas
- Education expenses linked to standard schooling, such as public school fees, textbooks, stationery and uniforms
- Transport to and from school or childcare
- Ordinary medical and dental care
The goal is to make sure the child’s well-being is supported and that the custodial parent or primary caregiver is not left carrying the full financial responsibilities alone. However this is assessed by the Agency not by each individual parent.
The Purpose Of Child Support
Child support exists to ensure children receive the financial support they need after their parents separate. Under Australian law, the standard child support payments are designed to meet essential expenses connected with raising a child, including food, clothing, housing and basic education.
The system is not meant to equalise household standards of living, nor does it automatically cover every cost a parent might wish to spend on their child. When one or both parents pay child support, it is essential to remember that the money is intended to contribute to the child’s everyday needs rather than specific or discretionary extras, unless otherwise agreed.
Understanding Child Support Assessments In Australia
Services Australia calculates child support using a formula that considers each parent’s income, the percentage of care each provides, and the estimated cost of raising a child at a given age. The formula is designed to be consistent and fair, but it does not automatically take into account private education or special expenses unless both parents agree or a Departure Order is made by the Court.
This means that while the paying parent may contribute substantially through regular child support payments, other costs often require separate arrangements.
Agreements Beyond Standard Assessment
Parents are not limited to the standard formula. They can enter into private payment arrangements if they wish to cover additional items or apply to the Court.
These can take several forms:
- Limited Child Support Agreement: A limited agreement is a formal arrangement between parents that sets out contributions for extra expenses, such as private school fees and associated expenses, extracurricular activities, or medical costs. It is less formal than a binding agreement and can be ended after three years by either parent.
- Binding Child Support Agreement: A binding agreement is a legally enforceable arrangement that covers ongoing or one-off child support payments, including extra costs beyond standard child support. Both parents require independent legal advice before signing, and it can only be overturned in specific circumstances.
- Prescribed non-agency payments: These are specific payments a paying parent can make directly for things like school fees or health insurance, which can be credited towards their child support liability.
- Non-agency payments: Broader payments made directly to the other parent or a third party, sometimes by agreement, but not always counted unless approved.
Such flexibility can be helpful when parents want to ensure the child’s education expenses or health needs are directly met. However, to avoid disputes, payment arrangements must be clear and legally recognised. The agreement is registered with Services Australia.
Prescribed Non-Agency Payments & Child Support Payable
Prescribed non-agency payments are specific contributions that a paying parent can make directly for the child’s essential needs, such as school fees, health insurance or medical expenses. These payments are formally recognised and credited towards the parent’s child support liability.
The main advantage is that they reduce the amount of regular child support owed, giving flexibility while ensuring the child’s essential needs are met. A potential downside is that these payments must comply with prescribed rules and be adequately documented to be counted towards the child support assessment. Key rules and requirements include:
Eligible items
Health insurance premiums, high medical expenses (orthodontics, surgeries, specialised therapies), and school fees (both public and approved private/independent schools). Not all schools are automatically accepted, and the payments must meet the Services Australia (Child Support Agency) criteria. Private or independent school fees
Agreement
A payment does not need the other parent’s agreement for it to count, but you must provide evidence of payment and that it meets the prescribed criteria. If the other parent does not agree then Services Australia makes the decision.
Proof required
Receipts or invoices must be submitted to Services Australia for credit.
Care considerations
The credited amount is based on your child support assessment; time spent with the child may influence calculations, but prescribed payments can offset the liability regardless of care percentage.
Other considerations
If Services Australia rejects the payment, it will not reduce your child support liability, meaning you could end up paying both the expense and the full child support amount. This factor makes direct payments confusing to navigate.
Limits
You cannot count more than the assessed child support; the payment cannot exceed your child support liability.
Process involved:
- Identify the eligible prescribed expense.
- Make the payment directly to the service provider or as prescribed.
- Keep detailed receipts or proof of payment.
- Report the payment to Services Australia to request that it be credited towards the child support assessment.
- Await Services Australia to confirm or reject amounts paid and adjust liability.
Non-Agency Payments
Non-agency payments are broader contributions made directly to the other parent, a third party or for the child’s benefit outside the formal child support system. They may include extra costs like extracurricular activities or ‘non-essential’ items.
The main benefit is flexibility in arranging payments that suit both parents’ circumstances. However, these payments are generally not automatically credited towards child support unless agreed upon or approved (nor are prescribed non-agency payments unless approved). This can create uncertainty for both the paying and receiving parent, and careful documentation or formal agreements are recommended to avoid disputes.
Eligible items
Extracurricular activities (sports, music, holiday camps), additional education or health expenses not covered under prescribed payments, and other agreed-upon costs for the child’s well-being.
Agreement
The paying parent usually needs the other parent’s agreement for the payment to be credited toward child support. Formal agreements, like limited or binding child support agreements, help ensure recognition.
Proof required
Keep records such as invoices, receipts, or evidence of bank transfers. While proof is essential, the payment will not count unless agreed or formally recognised.
Care considerations
Time spent with the child can influence overall calculations. Payments are generally credited proportionally to the child support assessment, but will not automatically offset the full liability.
Other considerations
If the other parent or Services Australia does not recognise the payment, you may end up paying both the expense and your assessed child support. Non-agency payments are flexible but carry more risk than prescribed payments.
Limits
Non-agency payments cannot cover the full child support liability; they only offset agreed or approved costs.
Process involved:
- Identify the eligible non-agency expenses.
- Discuss and agree with the other parent (or formalise via a binding/limited agreement).
- Make the payment directly to the parent or third party.
- Keep detailed proof of payment.
- Submit evidence to Services Australia if using it to offset child support, noting it may require approval.
Quick tip:
Prescribed payments = credited if approved by Services Australia.
Non-agency payments = negotiated and need the other parent and/or Services Australia to be approved.
When The Court May Step In
Sometimes disagreements arise about what child support should cover. The other parent may believe more is needed for the child’s wellbeing, while the paying parent may feel they are already contributing enough.
In some cases, the Federal Circuit and Family Court of Australia can order additional contributions, especially where children are already enrolled in private schooling or where specialised medical care is required. These situations highlight that while the scheme provides a baseline, every child support case is different, and family circumstances can lead to exceptions.
Enforcement & Overdue Payments
If the paying parent falls behind while using ‘government collect’ (or private collect through Services Australia in some circumstances), Services Australia can recover overdue payments through tax refunds, wage deductions, or even restrictions on overseas travel. These steps are in place to ensure the custodial parent and child do not suffer because of missed support.
At the same time, if a receiving parent’s payment arrangement is not being followed, the paying parent can request a reassessment or seek credit for prescribed payments they have made.
The Role Of Both Parents
Child support is not about rewarding one parent or punishing another. It is about sharing the financial responsibilities of raising a child after separation. The primary caregiver usually carries the daily costs, while the non-custodial parent contributes through formal child support arrangements. Both remain equally responsible in the eyes of the law.
In shared care or 50/50 custody arrangements, child support assessments consider the time the child spends with each parent and each parent’s income. Even if both parents provide care equally, a parent with a significantly higher income may still contribute more to ensure the child’s needs are met fairly.
Child support ensures both parents meet their financial responsibilities, supporting the child’s well-being, education, and essential expenses, regardless of custody arrangements or income differences.
In Conclusion
Standard child support assessments in Australia are designed to cover essential expenses like food, clothing, housing, and basic education. They do not usually extend to private schooling, extracurricular activities, luxury items or high medical expenses unless parents make a separate agreement.
Parents can negotiate formal agreement terms, use prescribed payments or rely on third-party transfers to cover additional costs, but clarity is essential to avoid conflict. At its core, child support ensures that children continue to receive financial support and stability, even when their parents live apart.
The assessment and criteria can be complex, whether privately arranged or managed through Services Australia. If you need assistance in understanding the amount of child support payable or receivable, third-party payments or have exceptional circumstances, our Pearsons family law team can assist you.
