Child Support and Non-Agency Payments (School fees for example)

Child Support and Non-Agency Payments

(School fees, for example)

When providing advice about child support, one of the questions I am frequently asked is whether the payment of school fees counts as a child support payment.

Non Agency Payments

School fees are referred to by the Child Support Agency (CSA) as non-agency payments. They may or may not be counted as a child support payment.

If you are a parent who has received an Assessment to pay child support, it is very important that you talk to the other parent before you make a non-agency payment.

It is important that both parents agree before payment, whether the payment for school fees is counted toward your child support liability or not.

Clarity in Advance

If you are a parent who has received an Assessment, don’t think that paying school fees will automatically be counted as payment of any child support liability.

It is important to discuss this with the other parent before you pay school fees.

Types of Non-Agency Payments recognised by the CSA

Where parents agree to ‘extra’ payments counting towards child support, it is still important to be aware that the CSA only gives credit for two types of payments made by the paying parent:

1. Direct payments made to the receiving parent; and
2. Payments made to third parties (for example – paying for the child’s school fees or health insurance).

Other examples of third-party payments might include payments for:

Food, clothing, household goods, rent, mortgage payments, payments for essential medical or dental, school fees, childcare expenses, credit card repayments, travel or holiday expenses, household bills such as gas, electricity, phone or council rates, motor vehicle expenses, sporting expenses.

Non-cash payments, such as a transfer of property or household repairs are also recognised.

Prescribed Non-Agency Payments

If the receiving parent doesn’t agree that a non-agency payment should be counted towards child support, the CSA may still credit some non-agency payments. The CSA refers to these as prescribed non-agency payments.

These include (but are not limited to):

Childcare costs, school fees, school uniform and book fees, essential medical and dental items, the receiving parent's share of rent or mortgage payments, the receiving parent's share of utilities and rates, some motor vehicle costs.

When will the CSA credit you for a Prescribed Non-Agency Payment?

The CSA can give you:    

• Credit for non-agency payments but only up to 30% of your child support liability.
• Credit of at least 70% if your monthly liability is paid on time.
• Credit for non-agency payments if you have the children in your care for less than 14% of the time.

Summary

Try and stay amicable with your former spouse.

Have discussions with your ex about payments you might make in lieu of child support before  you make them.

If you are not sure about non-agency payments, talk to the CSA or see a solicitor for advice.