Not every child support payment goes through Services Australia. Plenty of separated parents work out a private child support arrangement instead, paying school fees directly, covering a medical bill, or keeping up repayments on a car their ex needs for school runs.
The question is whether that kind of payment actually counts towards your child support liability. If you’re managing child support without child support agency involvement, or you’ve made a payment outside your usual arrangement and want it recognised, this guide explains what qualifies as a non-agency payment, what qualifies as a prescribed payment, and how each one gets assessed.
What Is a Non-Agency Payment?
A non-agency payment is any payment you make outside your normal child support arrangement that you want credited against what you owe. It generally falls into one of three categories:
- a payment made directly to the other parent
- a payment made to a third party on behalf of, or instead of, the other parent
- a non-cash arrangement, such as transferring an asset or providing a service instead of paying cash
The tricky part isn’t the payment itself, it’s proving that both of you intended it to count as child support at the time it was made.
How Is “Intention” Decided?
If you and your ex disagree about whether a payment was meant to count towards child support, the Registrar looks at the evidence available for both of you, not just your side of the story.
Helpful evidence includes anything in writing, texts, emails, or a written agreement, that shows you both understood the payment was in place of child support. A pattern of similar payments being accepted in the past also carries weight, since it shows an established understanding between you.
Without that kind of evidence, a one-off payment, even a generous one, is harder to have recognised. This is why it’s worth getting anything agreed down in writing at the time, rather than trying to reconstruct intent after a dispute starts.
A Worked Example
An administrative assessment is currently in place for Peter to pay Lucy child support of $1,500.00 a month. Lucy drives a car that is legally registered in Peter’s name, which she uses to transport the child of her relationship with Peter, to and from school.
The car is subject to finance and Peter has continued to pay the monthly instalments towards the finance secured against that car, since separation. The finance is $800.00 a month.
Depending on the circumstances, the $800.00 paid by Peter towards the finance secured against the car may be regarded as a “non-agency payment” for the purposes of his child support liability.
Payments made to, or on behalf of, a party to whom child support is owed, in lieu of making a payment towards child support may be recognised as a “non-agency payment” and credited against an existing liability for child support.
Parties may agree for the party who is making child support payments, to meet the cost of other expenses, in lieu of all or part of the assessed amount of child support. It’s important that any agreement reached is clearly documented in writing, and that receipts or other evidence of the non-agency payments are retained.
What Is a Prescribed Payment?
A prescribed payment works a little differently to a non-agency payment. It’s generally only available where the paying parent has care of the children for less than 14% of the time. If you have more care than that, a non-agency payment may be the more relevant option to consider.
In the absence of agreement, certain payments may qualify as “prescribed payments” under the Act, provided the relevant legislative requirements are satisfied. These can include:
- childcare costs and fees charged by a child’s pre-school or school;
- payments for uniforms and books prescribed by a child’s school or pre-school;
- necessary medical and dental services for a child;
- the share paid by the party who is liable for child support, towards any bond, rent, utilities, rates and/or mortgage repayments in respect of the recipient-party’s home; and,
- costs associated with obtaining and maintaining a motor vehicle, including, repairs and standing costs.
However, certain conditions must also be met including but not limited to:
- the total of the payments made exceeds the total of all payments previously credited against the child support liability for all past periods;
- at the time the payment was made the payer cared for the children for not more than 14% of the time, during the relevant payment period;
- at the time the payment was made the child support liability was not met, fully or in part, by a lump sum credit; and,
- the child support liability is not an overpayment order, spousal maintenance or de facto maintenance order, or, a registrable overseas maintenance liability.
If a payment satisfies the requirements for recognition as a prescribed payment, it may be credited by the Child Support Registrar, up to an amount equating to 30% of the amount of child support payable.
What If You Disagree With a Decision?
If the Registrar decides not to credit a payment, or only credits part of it, you’re not stuck with that outcome. You can object to the decision, and if needed, take it further through the usual child support review process.
Getting legal advice before you object is worth it, since these decisions come down to how well the evidence is presented, not just whether the payment genuinely happened.
Plain English Guide to Child Support
Want the bigger picture on how child support works in Australia, not just non-agency and prescribed payments? Our Plain English Guide to Child Support breaks down assessments, payment options and your obligations in straightforward terms.
Frequently Asked Questions About Non-Agency Child Support and Prescribed Payments
Can a non-agency payment be backdated?
Whether a payment can be recognised in respect of an earlier liability period will depend on the circumstances and the applicable child support rules. Legal advice should be obtained for situation-specific guidance.
Does a non-agency payment need to be in writing?
It doesn’t have to be, but it’s strongly recommended. Written evidence, even a simple text exchange confirming what was agreed, makes it far easier to prove intention if your ex later disputes the payment.
What happens if my ex and I disagree about whether a payment counts?
The Registrar will consider the evidence from both sides and make a determination based on the circumstances, including what the evidence shows about the parties’ intention at the time the payment was made. If you disagree with that decision, you can object to it.
Can I claim a prescribed payment and a non-agency payment for the same expense?
Prescribed payments and non-agency payments generally apply in different circumstances. Whether a particular expense can be recognised will depend on the facts and the applicable child support rules.
How do I keep records of non-agency payments?
Keep receipts, bank statements and any written communication confirming the payment was intended as child support. The more contemporaneous the evidence, the stronger your claim will be if it’s ever disputed.
Talk to Coleman Greig’s Family Law Team
If you’ve made a payment you believe should count towards your child support, or you’re disputing one your ex has claimed, get in touch with Coleman Greig’s family law team today for advice on your specific situation.
