Special Circumstances for Child Support Reduction
Whether you receive child support from your ex or are required to pay support, there may be certain situations where the amount paid or received will be subject to review.
It may be that more child support is required, or the amount should be reduced.
If you are the one liable to pay child support, there are several grounds you may have to apply for a child assessment review to reduce the amount of your payments, and it’s worth seeing if you are entitled to lodge a review of assessment under any of these factors.
The change of assessment in special circumstances provisions are in Part 6A of the Child Support (Assessment) Act 1989 (Cth).
What does ‘special circumstances’ actually mean?
The registrar uses an administrative formula to make a child support assessment. However, if there are special circumstances to be considered, the registrar has the power to change a child support assessment.
So what are special circumstances?
The courts have previously established that it needs to be a situation that is special or out of the ordinary and the law provides a number of grounds where this may be the case.
But that’s not the only test. Once special circumstances have been identified and established, the registrar must also consider whether changing the assessment would be ‘just and equitable’ and ‘otherwise proper’ (section 98C(1), given the circumstances of the case.
Here are some of the reasons for a valid reduction of child support:
High costs of care
If you are up for high costs (that is costs exceeding 5% of your taxable income) relating to spending time with and/or communicating with your children, you may be entitled to apply for an adjustment in your child support payments.
What constitutes relevant high costs was explored in the cases of Hall and Rushton (1991) FLC 92-249 and Gyselman and Gyselman (1992) FLC 92-279.
They may include:
- Telephone and internet costs.
- Accommodation.
- Transport costs.
Note that the cost of entertainment cannot be included, as it is seen as rather the cost of ‘enjoying’, rather than enabling, the time spent or communication with the child.
In addition, if you have at least regular care of a child, the only costs that can be taken into account under this reason are costs related to travel.
These costs can includeairfares, petrol, and taxi fares together with the cost of any stopover accommodation – but not the costs of accommodation at the destination for the purpose of spending time with the children.
The special needs of the child
If you have a child with special needs, you can apply to the registrar for an adjustment in your child support.
If you are meeting the costs relating the child’s special needs directly, it may be appropriate to apply to decrease the amount of child support payable by that amount being paid directly.
High costs of care, education and training in the manner expected
If your child attends a private school with significantly higher term fees, you may be able to seek a reduction in child support if you are meeting your contribution to those fees directly via payment to third parties.
Alternatively, you may be able to claim credit for any extra child support amounts, where you pay the monies directly to third parties.
Children’s income
Your kids may be coming of age where they start to earn their own income. If this is the case, your child support assessment can be reviewed on this basis. However, note that the income earned needs to be more than minimal income. A first job at Maccas probably won’t be sufficient grounds for applying for a reduction under this section!
Rather, the income needs to be ‘significant’ – or in other words, at least $320.90 per week. Outgoings such as transport costs can also affect a decision under this section.
Money, property or goods received by the child
Similar to income, you can apply for a change of assessment in special circumstances if the child support assessment is unfair you have paid or transferred money, goods or property to the child, your ex, or a third party for the benefit of the child.
Necessary self-support commitments
If you cannot provide adequate financial support for your child due to the fact that you have existing commitments that are necessary in order to support yourself, you can apply for a reduction in child support.
To establish a case under these grounds, you’ll need to show that:
- Your circumstances are special.
- Your commitments are both necessary and reasonable to enable your to support yourself.
- Your commitments significantly reduce your ability to support your child.
Medical treatments and interventions required for self-support may fall under this category.
Your ex’s income and earning capacity
If your ex has the capacity to earn an income and no reason why they are not apart from the fact that it benefits their child support entitlement, you may have grounds for a review under this section.
Duty to maintain another child or person
If you are responsible for another child or person, you can apply for a reduction of child support.
Examples may include supporting a spouse (married or de facto), paying maintenance to a former spouse or partner, or supporting dependent children (which may include adult children).
Duty to maintain a resident child
This ground differs from the above because it can include a step-child where the other parent is unable to support the child due to ill health.
At Amicus Lawyers, we can provide advice and guidance on all matters relating to child support assessments and how to reduce your liability to create fairness and parity.