Child support in Australia isn’t just about a formula – there are also rules about the minimum and maximum amounts that can be paid. These rules are designed to ensure children receive some level of support no matter what, while also putting limits in place so payments are not endless, even for very high-income parents.

Why Minimum Payments Exist

Even if a parent earns very little, the law expects them to contribute something to their child’s costs. That’s because both parents share responsibility for raising children, regardless of income.

• The minimum annual rate is set by Services Australia and changes each year (in 2025 it is about $480 per year, or $10 per week).

• This means that unless a parent qualifies for a full exemption, they must pay at least this amount.

Who might be exempt?

Some parents don’t have to pay the minimum. Examples include:

• Parents on certain government pensions (e.g. Disability Support Pension, Newstart).

• Parents who earn below the “self-support amount” and meet hardship rules.

Example:
Michael lost his job and is on JobSeeker payments. Normally, he’d pay the minimum child support rate of around $10 a week. But because he is receiving a qualifying Centrelink payment, he may be exempt.

Why Maximum Payments Exist

On the other end of the spectrum, high-income parents are not expected to pay unlimited child support. The formula is capped at an income ceiling, which is reviewed each year.

• In 2025, the income cap is around $212,000 per year per parent.

• Any income above that level is ignored when calculating child support.

• This creates a maximum payment amount, depending on the number and ages of the children.

Example:
Sophie earns $400,000 per year. Under the formula, only the first ~$212,000 of her income counts. So even though she earns nearly double the cap, her child support is calculated as if she earned $212,000.

Why These Limits Matter

• For paying parents: It provides certainty that even if their income drops very low, their obligation won’t completely disappear (except in very limited cases). For high earners, it prevents the assessment from being unlimited.

• For receiving parents: It ensures they will receive at least some contribution, but it can also be frustrating if their ex earns a lot more than the capped income.

When Payments Can Go Higher or Lower

While the formula sets the standard minimum and maximums, parents can agree to different amounts through private agreements. For example:

• A high-income parent may agree to cover private school fees on top of the capped child support.

• A low-income parent may still contribute more than the minimum if both parents agree.

If the formula outcome feels unfair, either parent can apply for a Change of Assessment to have the payments adjusted based on special circumstances (e.g. significant medical expenses, hidden income, or education costs).

Key Takeaway

Child support in Australia has built-in safeguards:

• A minimum payment to make sure both parents contribute something.

• A maximum cap so very high-income parents don’t face unlimited obligations.

These rules make the system more balanced, but they don’t always reflect real-life family expenses. That’s why agreements and reassessments remain an important part of the process.