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What is the child support formula?

What is the child support formula?

The Child Support Agency assesses how much child support should be paid using the child support formula. Example of basic formula:

  • ‘Child Support Income’ of the payer using the most recent tax return - $40,000.00
  • Less ‘Exempted Income’ for a single adult (for 2002/03) - $11,740.00
  • Apply the ‘Child Support percentage’ (27% for 2 children) - $7,630.20
  • Amount of Child Support payable = $635.85 per month, or $146.73 per week.

The child support percentage varies between 18% to 36% according to the number of children who are the subject of the assessment.

The carer parent’s income can also affect the formula if it exceeds $35,012 (2002/03). There are more complex variations of the formula where for example:

  • The payer has other "relevant dependent children" in their care (i.e. natural or adopted children).
  • The care of the children is shared (more than 146 nights per year with each parent).
  • The payer has substantial contact with the children (109 - 146 nights per year).
  • The children of the relationship are divided between the parent’s homes.
  • The payer has responsibilities to several carers for other children.

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