The child support formula is a starting point, but it doesn’t always reflect the real needs of families. That’s why many parents choose to make their own child support agreements. These agreements give parents more control, flexibility, and certainty about how children will be supported.

This article explains the different types of agreements available in Australia, how they work, and what options parents have if the formula doesn’t suit their circumstances.

Why Parents Make Agreements

The formula can feel rigid. It doesn’t consider private school fees, extracurricular activities, or unique family arrangements. Agreements allow parents to:

• Decide how child support is paid (cash, school fees, medical costs, etc.),

• Set amounts higher or lower than the formula (if both agree),

• Lock in certainty for the future.

Example:
Emma and David agree that instead of weekly cash payments, David will pay the children’s school fees and cover their health insurance. This way, the money is spent directly on the children’s needs.

Types of Child Support Agreements

There are two main types of agreements under Australian law:

1. Limited Child Support Agreements

• Must be based on an existing Services Australia assessment.

• Can last up to 3 years.

• Do not require legal advice, but both parents must agree.

• Flexible — can be ended if circumstances change significantly.

Example:
If the formula says $150 per week, parents might agree on $120 per week plus school uniforms.

2. Binding Child Support Agreements

• Can be made without a current formula assessment.

• Both parents must get independent legal advice before signing.

• Provides long-term certainty — cannot be changed easily.

• Useful for families who want to plan ahead (e.g. agreeing on payments until a child finishes Year 12).

Example:
A high-income parent agrees in writing to pay $400 per week plus school fees until the children finish school. Because it’s a binding agreement, the other parent can rely on it.

Alternatives to Standard Payments

Child support doesn’t always have to mean fortnightly bank transfers. Parents can agree on:

• Directly paying for education (school fees, tutoring, laptops).

• Covering medical and dental expenses.

• Paying for sport, music, or extracurricular activities.

• Providing housing or transport support (rent, car costs).

These alternatives often make more sense, especially for families with older children who have bigger costs.

Risks and Considerations

While agreements can be flexible, they also carry risks:

• A binding agreement can only be changed if both parents agree or a court sets it aside.

• If circumstances change (e.g. job loss, illness), one parent may struggle to meet the agreed amount.

• Legal advice is essential before signing any binding agreement.

Key Takeaway

Child support agreements give parents flexibility to design arrangements that truly meet their children’s needs. From paying school fees directly to locking in long-term certainty, agreements can be a smart alternative to relying only on the formula. But parents should always consider the risks and seek legal advice before signing binding agreements.