Many separated parents have difficulties sorting out how to financially support their children following separation. The law says that both parents have an obligation to financially support their children. How much should be paid depends on the financial circumstances of each parent, economic data on the costs of children, the level of care each parent provides for the child(ren), and whether either parent supports other biological or adopted children. In the first instance, the formula assessment uses information from the parents’ previous year’s taxable incomes to calculate the child support payments. It is important that parents who receive or pay child support, lodge their tax returns promptly.

Significant changes have recently been made to the Child Support Scheme. They have been introduced in three stages, taking effect from 1 July 2006, 1 January 2007, and 1 July 2008.

The changes to the Child Support legislation have been made in concert with changes to the Family Law Act, Family Assistance Office and the establishment of Family Relationship Centres.

The most significant changes commenced on 1 July 2008 when the formula that is used to calculate child support payments changed entirely. The new formula takes into account each parent's income, the ages of the children, the level of care each parent provides for the children, and the estimated costs of the children. Each parent is allowed the same self-support amount, and the formula is modified to take account of whether either parent supports other biological or adopted children.