Limited child support agreement
A formal agreement for child support signed by both parents. Legal advice is not needed before entering into a limited agreement.
You need to know
Your agreement can include payment of cash or non-cash items, such as school fees and health insurance.
The agreement needs to be in writing and signed by both parents. You don’t need to seek legal advice before entering into a limited child support agreement.
Before we can accept this type of agreement:
- there must be a child support assessment in place
- the amount payable under the agreement must be equal to, or more than, the child support assessment
If we accept your agreement, we will make a notional assessment of how much child support would be payable without the agreement. The notional assessment is updated:
- every 3 years
- if the amount payable under the agreement changes by more than 15%, or
- whenever either parent asks for a new notional assessment
This ensures you and the other parent know how much child support would have been payable if the agreement was not in place and it helps us calculate Family Tax Benefit (FTB) fairly.
Child support payments are based on an assessment of your adjusted taxable income from a previous year (last year of relevant income).
Provisional income is used in your child support assessment if your income for the most recent financial year has not been assessed by the Australian Taxation Office (ATO).
You or the other parent can end a limited agreement if:
- both of you agree in writing to end the agreement
- you make a new agreement that reflects your new arrangements and it has the effect of ending the previous agreement
- more than 3 years has passed since the agreement was made and a written notice is provided by the parent who wants to end it
- there is a court order that sets aside the agreement
- the notional assessment varies by more than 15% from the previous assessment in circumstances not included in the agreement, and written notice is provided by the parent who wants to end it
We make an assessment of the amount of child support you should pay or receive if one or both parents apply for an assessment.
We use a formula approved under Australian law, we make an assessment of the amount of child support you should pay or receive.
Read more about child support assessment.
Child support payments and Family Tax Benefit (FTB) Part A are closely linked. Any child support you receive may affect the amount of FTB you receive.
As a parent, you have responsibilities and rights. You also have choices in arranging your child support in a way that works for you and the other parent.
Parenting plans are written plans that can include an agreement about the amount of time your children will be in each parent’s care.
When you leave Australia on military deployment, a number of things will change that we need to know about. This is so we can make sure your child support assessment is accurate.
Once you have read about a limited child support agreement, the next steps are to:
- decide if you will negotiate a Limited Child Support Agreement with the other parent
- use the Child Support Agreement form or draft your terms separately
- submit your agreement and any supporting documents
- apply for acceptance of the agreement either in writing or over the phone
Paying child support
Collecting child support
Decide what collection option is right for you.
You and the other parent decide the most convenient way for payments to be made between yourselves.
We collect and transfer child support payments for you.
Changes to your circumstances may affect your child support assessment, so it’s important that you tell us as soon as possible.