An administrative assessment of child support must be in place before a Limited Child Support Agreement can be registered. It is recommended that parties seek legal advice before entering a Limited Agreement, but this is not a mandatory requirement.
A Limited Child Support Agreement has the following fundamental characteristics:
- provides a rate of child support equal to or more than the amount payable under the formula assessment;
- can include periodic and non-periodic payments;
- can be replaced with a further Limited or Binding Agreement, but cannot be varied;
- can be terminated upon application of either party after the passage of 3 years; or when the annual rate of child support payable under a notional formula assessment changes by more than 15%;
- can be set aside by a court under s 136 of the Child Support (Assessment) Act 1989 (Cth);
- Family Tax Benefit (A) entitlements will be calculated by reference to the child support payable under a notional formula assessment, (not the amount payable under the Agreement);
- a new notional assessment will be issued each three years; or at the request of either party; or where the amount of child support payable under the agreement changes by more than 15%;
- parties have options to challenge the new notional assessment within 14 days.
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.