Child Support for Grandparents

In Australia, parents have a legal responsibility to financially support and physically care for their children. In reality, of course, many families follow the proverb that “it takes a village to raise a child”. Grandparents often take on much of the burden of childcare, especially when parents are working or are otherwise unable to take responsibility for their children. In these cases, grandparents may be given the parental responsibility usually exercised by biological parents. This article looks at the legal right of these grandparents to child support in Australia.

For many families, grandparents play a significant role in their grandchildren’s lives, offering not only loving support but also stepping in as caregivers when parents are unavailable. It is not uncommon for grandparents to be a critical part of childcare arrangements, either through informally agreement with the parents or through court-ordered custody. When parents are not in a position to care for their children (especially in cases where they are incarcerated, seriously ill, or experiencing substance abuse or severe mental health challenges), the courts often see grandparents as suitable figures to exercise parental responsibility.

When grandparents take on this role with their grandchildren, it will usually involve significant additional expenses, such as increased living costs and unexpected responsibility for educational and medical expenses for a growing child. This burden can be especially daunting for those who are retired or on a fixed income. Part of the duty of a grandparent in this circumstance is to consider how to secure sufficient financial resources to provide adequate support and safety for their grandchild. One way they can achieve this outcome is through child support.

The child support system in Australia was created by the Child Support (Assessment) Act 1989 and administered by Services Australia. The system is designed to ensure that both parents contribute financially to their children’s upbringing (as much as possible), regardless of whether the parents live apart. Because child support is intended to meet the needs of the child, anyone who acts as the primary caregiver can apply for child support.

Under Australian law, parents remain financially responsible for their children, even if they do not provide daily care. Grandparents will be considered primary caregivers if they have the care of the child for 128 or more nights a year. As such, they can apply for child support from one or both biological parents. Grandparents can lodge an application with Service Australia and provide proof that they are a primary caregiver, such as court orders, statutory declarations or other evidence that the child lives with them for a large part of the year. Once approved, the agency will determine the amount of support based on the parents’ income and other relevant factors.

A grandparent can apply for child support by following the steps below:

1. gather documentation (such as court orders, medical records and statutory declarations) to show that they are a primary caregiver;
2. contact Services Australia to begin the application for child support;
3. fill in the necessary forms and submit the required documents, with information about the parents’ contact details and financial circumstances;
4. wait for Services Australia to assess the case and determine how much child support the parents should pay.

The biological parents may be required to make regular payment directly to the grandparents for the care of the child. The calculation of child support follows a standard assessment formula which considers factors such as each parent’s income, the number of children, and the amount of time the child spends with each parent. Child support is intended to cover:

• daily living expenses and clothing
• school fees and educational costs
• childcare and extracurricular activities
• medical and dental costs

Grandparents can face challenges securing child support, especially if they are estranged from the child’s parents or the parents are unwilling to acknowledge the extent of the caregiving arrangement. In these cases, Services Australia has enforcement mechanisms to garnish wages and intercept tax refunds.

Because the calculated child support is assessed on what the parents can afford to pay based on their income, the amount ordered may not fully cover the costs of raising a child. If the parent’s capacity to care for their child is compromised, then their capacity for employment may also be compromised, so any child support may be correspondingly reduced.  This is especially true if the biological parents are incarcerated or receive only a government income support benefit.

The Australian government recognises the financial challenges faced by grandparents raising their grandchildren and provides other support in addition to child support. For instance, grandparents who are primary caregivers may be eligible to receive:

• Family Tax Benefit
• Grandparent Adviser Service (a Services Australia advice and support service for grandparents caring for their grandchildren, including assistance with child support applications)
• Centrelink payments (depending on the circumstances, the grandparent may be eligible for additional government income support payments, such as the Parenting Payment or Carer Payment if the child has special needs)

Grandparents who take on responsibility for raising their grandchildren perform a vital role in ensuring the children have stable, loving homes, especially in challenging circumstances. However, this responsibility usually comes with significant financial burdens. Child support can help alleviate this burden. Please contact the family law specialists at Go To Court on 1300 636 846 for advice about your eligibility for child support as a grandparent and primary caregiver.