Limited child support agreement
A formal agreement for child support made in writing and signed by both parents. Legal advice isn’t needed.
You need to know
A limited child support agreement allows you to make an agreement about your child support payments and how they are paid.
Your agreement can include payment of cash or non-cash items, such as school fees and health insurance.
Before we can accept this type of agreement:
- there must be a child support assessment in place, and
- the amount payable under the agreement must be equal to, or more than, the child support assessment
A limited child support agreement may affect the amount of Family Tax Benefit (FTB) Part A you receive. Your assessment for FTB Part A will be based on the notional assessment, not the amount in the agreement.
After a child support agreement is accepted, we assess what the child support would be if the agreement wasn’t in place. We call this a 'notional assessment'.
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 limited or binding agreement that reflects your new arrangements
- it has been more than 3 years since the agreement was made, and a parent asks us in writing to end it, or
- the notional assessment varies by more than 15% from the previous assessment because of circumstances not included in the agreement, and a parent asks us in writing to end it
A court may also make an order that sets aside the agreement.
We assess 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.
Read more about child support assessment.
Child support payments and Family Tax Benefit (FTB) Part A are closely linked. Child support may affect the amount of FTB you receive.
Once you've read about limited child support agreements, the next steps are to:
- decide if you'll 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 can collect and transfer child support payments for you.
Changes of circumstances may affect your child support assessment, so it’s important that you tell us as soon as possible.