Unpaid Child Support

Child support is the financial contribution of separated parents to the upbringing of their children. Parents are legally required in most instances to share the costs of raising their child, regardless of where the child usually resides. It can be extremely challenging for a custodial parent when the other parent fails to contribute financially. Parents need to understand their legal rights and responsibilities when it comes to child support to ensure the best outcomes for their children. This article looks at the repercussions for non-compliance with child support obligations.

Child support

In Australia, the obligation to provide financially for a child is regulated by the Child Support (Registration and Collection) Act 1988 and administered by Services Australia on a nationwide basis. When parents separate, either party can apply to Services Australia for an administrative assessment of child support. Services Australia will perform a child support assessment to determine the appropriate amount of child support that each parent must pay, although most commonly one parent will pay child support to the other. This calculation accounts for factors such as the parents’ respective incomes, how many children each parent has, and the care arrangements for the child.

If a parent disagrees with Services Australia’s assessment, they can apply for an administrative review of the decision. Parents typically apply for review because they think they are being asked to pay too much, or because they believe that the other parent is not paying enough in all of the circumstances. A parent can also apply through the Federal Circuit and Family Court for a review of child support if they have not been able to reach a satisfactory solution via an administrative review. The court can take a nuanced view of the situation and determine how much child support is necessary to achieve the best interests of the child.

Some parents privately negotiate a child support agreement, without involving Services Australia. This is often preferred by parents who have a cordial relationship and/or would like to keep their finances private. Private agreements can also be more flexible, allowing for payments to vary based on need and capacity, which can work out better for both parents. However, when the parents negotiate a private agreement, it is vital that both parents keep a careful record of payments in case there is a dispute in the future.

Methods of collecting unpaid child support

When a parent is struggling to make child support payments, they are encouraged to contact Services Australia and arrange an alternative payment plan. If the parent’s circumstances change because of lost employment, decreased income, or bankruptcy, they can apply for a child support assessment review, which can mean a temporary or permanent adjustment of child support obligations. Parents should also communicate their financial challenges to the other parent, if possible, as the other parent may be willing to agree to a temporary modification to account for the changed circumstances.

Otherwise, Services Australia (or the parent or guardian themselves) can take legal action to enforce an existing binding child support agreement. These parties can make an application directly to a court for child support orders, so that deductions are made directly from the parent’s bank accounts or from their wages, or via seizure of their property or assets. The Australian Taxation Office can also intercept tax refunds before they reach the parents and redirect them to pay off unpaid child support. Parents should keep in mind that they are liable for penalties and interest on the outstanding amount of child support, increasing the debt over time.

If a parent fails to comply with a court order, they can be found in contempt of court. In extraordinary cases, a parent can be sentenced to community service or imprisonment for wilfully disobeying a court order relating to child support obligations. It is important to note that imprisonment is a rare, last-resort consequence of not paying child support.

More commonly, non-paying parents face consequences such as having the debt referred to credit agencies, which can negatively affect their credit rating. The Australian government can also grant a Departure Prohibition Order to prevent a parent from leaving the country if they have a significant child support debt. If the parent is already residing overseas,  the Australian government has agreements in place with several countries around the world to enforce child support obligations.

Withholding of child access

One common misapprehension is that a custodial parent can withhold access to a child if the other parent fails to pay child support. It is important to understand that child support and parental responsibility (‘custody’) are separate issues and administered under different legislation. While the Court will be concerned about the best interests of the child if a parent fails to meet their financial obligations, this is unlikely to be the determining factor in any parental arrangements. In fact, the Court will take a dim view if the custodial parent refuses to allow access to a child against the terms of a consent order.

For advice about the consequences of not paying child support, or guidance on how to enforce child support orders, please contact Go To Court Lawyers on 1300 636 846.