Attwood Marshall Lawyers Family Law Associate Laura Dolan explains how child support works in Australia, what to do if payments aren’t being made, and how to protect yourself with the right legal agreements in place.
A damning report released by the Commonwealth Ombudsman earlier this year found that Services Australia, the government agency responsible for administering child support payments, knowingly failed to follow the law for six years.
The report revealed that the agency did not comply with legislative amendments introduced in 2008 and 2018. Services Australia said it believed the changes created “unintended consequences” that went against longstanding government policy. The decision is thought to have affected more than 16,000 parents across about 10,000 child support cases, with ABC reporting that some parents could be owed from between $60 to as much as $10,000 in unpaid support.
The government has since committed to retrospective legislative amendments to address the issue. Still, the episode will understandably have left many parents questioning how the system works and whether they are getting what they are entitled to.
It follows another Ombudsman report released last year, which found that Services Australia was not doing enough to stop participants from using the system to financially abuse their ex-partners.
The Australian government announced in its 2026-27 Budget that it will invest $182.6 million “to make the child support system safer and to help more children get the support they are owed.” Indeed, as of 31 March 2026, the Department of Social Services reported almost $2 billion in unpaid child support debt across 229,235 paying parents in the government collection system – a figure that excludes private arrangements managed between parents directly.
Here, we break down the key things that parents need to know about child support in Australia.
What is child support?
Child support is a regular financial payment made by one parent to the other to cover the costs of raising their children after separation. It is designed to ensure that both parents continue to contribute to their child’s welfare – including food, housing, clothing, education, and activities.
In most cases, Services Australia handles child support under the Child Support (Assessment) Act 1989. Where that legislation does not apply – for example, where a parent lives overseas in a country that does not have a reciprocating agreement with Australia, or the child is over 18 – a court order for child maintenance may be sought under the Family Law Act 1975 instead.
How is child support calculated?
Services Australia uses a set formula to calculate how much one parent should pay the other. The formula considers both parents’ taxable incomes, the number and ages of the children, and the number of nights each parent cares for the children.
In simple terms, each parent contributes to a combined pool of funds based on their share of the total income. That pool is then distributed back to the parents in proportion to the care each provides. The parent who provides more care generally receives a larger share of the pool to cover the costs they are directly meeting.
To put that in practical terms: if Parent A earns $80,000 a year and Parent B earns $40,000, Parent A contributes roughly two-thirds of the combined income and therefore two-thirds of the child support pool. If Parent B is the primary carer – say, the children spend 70 per cent of nights with them – Parent B receives the larger share of that pool to cover the day-to-day costs they are bearing. The result is a payment from Parent A to Parent B each month.
The formula is designed to reflect real-world care and income as accurately as possible, which is why it is reviewed annually and why significant changes in either parent’s circumstances can affect the outcome.
Where parents believe the formula no longer reflects their actual circumstances, they can apply to Services Australia for a change of assessment.
Common reasons for doing so include significant changes in: income, the costs of caring for a child with special needs, schooling arrangements, or the price of spending time with children across distances.
What happens if a parent refuses to pay?
If child support payments stop, a debt accrues. The parent who is owed money should notify Services Australia as early as possible so the agency can step in.
Services Australia has a range of enforcement options available, including deducting payments directly from that parent’s wages, redirecting a tax refund, accessing a bank account, or – where other measures fail – commencing court proceedings.
It is also worth noting that attempts to manipulate the formula (for example, by deliberately reducing taxable income) are not effective.
Child support officers are trained to identify this behaviour and have alternative assessment methods to arrive at the correct figure.
Private child support agreements
Parents do not have to rely on the government formula. They can instead enter into a private agreement that sets out the amount, frequency and method of child support payments without going through Services Australia.
These agreements give parents greater flexibility and autonomy over the terms, particularly where their circumstances don’t fit neatly into a standard formula.
There are two types: limited child support agreements, and binding child support agreements.
The main differences are that limited child support agreements must be equal to or greater than the Services Australia assessment and require a prior assessment.
With no requirement for assessment, binding agreements may be a more flexible option for many families. They can also include a combination of regular periodic payments and non-periodic payments for specific expenses such as school fees or medical costs.
A binding agreement can also be a better fit where one parent is self-employed or has a variable income that the standard formula struggles to assess accurately, or where the parents have reached an amicable arrangement and want it formalised without ongoing agency involvement.
It is worth noting, however, that these agreements are not designed to be set-and-forget documents. As children grow and circumstances shift, what worked at separation may no longer reflect reality, which is why reviewing any agreement with a family lawyer periodically is best practice, even where the relationship between parents remains cooperative.
Both parents must obtain independent legal advice before signing a Binding Child Support Agreement.
And if circumstances change down the track, the agreement cannot simply be varied. Any changes require the consent of both parties and the drafting of a new agreement.
What the Services Australia findings mean for you
The Ombudsman’s January 2026 report is a reminder that the child support system is not infallible. If you are a parent who has been receiving less support than you expected – particularly if your former partner has less than 35 per cent care of your children – it may be worth seeking legal advice to understand whether you have been affected by the agency’s non-compliance, and whether back payments may be owed to you.
The first step is to contact Services Australia directly and ask whether your assessment falls within the gap period identified by the Ombudsman. Broadly, this would be cases involving a parent with less than 35 per cent care, assessed between 2018 and 2024.
Keep records of all correspondence.
If you are not getting a clear answer, or if you believe the agency’s handling of your matter has been unreasonable, a family lawyer can help you understand your options.
Given the scale of the issue and the government’s commitment to retrospective amendments, affected parents should act sooner rather than later.
If you are navigating child support for the first time following separation, getting the right advice early can make a significant difference and help reduce conflict down the track.
Whether you are considering a private agreement or working through a Services Australia assessment, understanding your entitlements protects both you and your children.
Attwood Marshall Lawyers – helping families resolve conflict and protect the best interests of children
Our dedicated family law team practises exclusively in this area. It has extensive experience handling parenting disputes and financial agreements. We focus on resolving matters as efficiently as possible and always keep the best interests of the children front and centre.
If you need advice on child support or any parenting matter, contact our Family Law Department Manager, Donna Tolley, on 07 5506 8241, email dtolley@attwoodmarshall.com.au, or free call 1800 621 071.
Our team is available at our offices in Robina Town Centre, Coolangatta, Southport, Kingscliff, Brisbane, Sydney, and Melbourne.
