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In Australia, child support is governed by the Child Support (Assessment) Act 1989 (Cth).
It is processed through Services Australia (Child Support) where a formulaic approach is taken to determine the amount of child support payable by one parent to the other.
The amount of child support is determined by:
- Each parent's income;
- The number of nights the child/children spend in each parent's care.
In many cases, this provides a suitable solution. However, sometimes a typical child support assessment can fail to address unique family situations, such as when one parent's income is manufactured to appear lower on their tax return than what it truly is.
So, what are your options?
Departure Orders
A Departure Order is a court order which allows child support to be calculated in a way other than the assessment issued by Services Australia.
The Federal Circuit and Family Court of Australia (FCFCOA) can make such orders as it has accrued jurisdiction powers.
For the Court to consider a Departure Order, there are certain grounds that must be met, for example if:
- Either parent's financial capacity has reduced;
- Either parent's financial capacity has reduced because of their responsibility to maintain a resident child (a child who primarily lives with them);
- The costs of maintaining the child are significantly affected;
- It would be unjust and inequitable if the assessment is not changed.
There must also be a special circumstance for one party to seek a Departure Order.
The phrase 'special circumstances' is not clearly defined, however the FCFCOA emphasises that the facts of the case must establish something which is special, or out of the ordinary, that would warrant intervention from the Court.
When the formula falls short
If you believe your child support assessment doesn't reflect your family's true financial circumstances, our Family Law team can help. We're here to guide you through your options and advocate for a fairer outcome.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
