What Does Child Support Cover? 

Three months after your separation, you’re staring at a Services Australia assessment letter, wondering exactly what you’re paying for – or what you’re meant to be receiving. Can child support go towards your daughter’s netball registration? What about the new school laptop? And does your ex have any say in how you spend it?

These are questions we hear constantly from separating parents in Cairns. Child support can feel like a grey area, and without clear guidelines on what it covers, disagreements quickly follow.

Here’s what you need to know about how child support works in Australia, what it covers, what it doesn’t, and how to avoid common disputes.

Key Takeaways:

Child support typically covers:

• Housing costs (rent, mortgage, utilities)
• Everyday essentials (food, clothing, transport)
• Basic education expenses (public school fees, uniforms, textbooks)
• Routine healthcare (GP visits, standard dental, medications)
• Agreed extracurricular activities (if both parents consent)

It doesn’t automatically cover:

• Private school tuition (unless specified in an agreement)
• Extracurricular activities without mutual consent
• Large one-off purchases (electronics, holidays)

Current rates (2025): Minimum annual rate is $1,831 per child. Most payments are calculated using Services Australia’s formula based on both parents’ incomes and care arrangements.

What Child Support Actually Covers in Australia

Child support is designed to help meet a child’s basic living costs after separation. Services Australia describes it as covering “the costs of raising children, including food, clothing, a home, health and education.”

But here’s the important part: there’s no itemised list of approved expenses. The receiving parent has discretion over how the money is spent, as long as it’s going towards the child’s general welfare.

Housing and Utilities

Child support can contribute to rent or mortgage payments, council rates, and utilities like electricity, water, and gas. This doesn’t mean child support fully covers your rent – rather, it contributes to the child’s share of household costs.

Everyday Living Expenses

The bulk of child support goes towards day-to-day essentials: groceries, clothing, school shoes, and transport to school or activities. These are the ongoing costs that add up quickly.

Education Costs

Child support covers public school fees, uniforms, textbooks, and stationery. For children with additional learning needs, it may include essential tools such as speech therapy or assistive technology – though parents often need to discuss these costs separately.

Healthcare and Medical Costs

Routine medical care is covered: GP visits, standard dental check-ups, vaccinations, and prescribed medications for ongoing conditions like asthma or allergies.

However, elective treatments – such as braces, LASIK eye surgery, and cosmetic procedures – typically aren’t included. These require separate agreements between parents, as they’re not considered medically necessary.

Extracurricular Activities

This is where things get complicated. Child support doesn’t automatically cover swimming lessons, basketball registration, or piano classes – but parents can agree to share these costs. If you’re considering enrolling your child in an activity, it’s worth discussing with the other parent first. Without mutual agreement, you may end up covering the full cost yourself.

How Receiving Parents Use Child Support

Here’s what surprises many people: child support payments aren’t tracked or itemised. The receiving parent has full discretion over how the money is spent.

This flexibility exists because child support is meant to contribute to the overall cost of raising a child, not cover specific line items. A parent might use it to pay for groceries one week and school uniforms the next – it’s all considered supporting the child’s welfare.

The paying parent doesn’t have oversight of these decisions, which can sometimes cause friction. But the law recognises that the receiving parent, who provides the majority of care, is best placed to make these day-to-day financial choices.

What Child Support Doesn’t Cover

Understanding what’s excluded from standard child support helps prevent disputes down the track.

Private School Fees

Private schooling is considered a non-essential expense. If both parents agree private schooling is worthwhile and affordable, they can formalise this in a Binding Child Support Agreement. Otherwise, it’s not automatically covered.

Unagreed Extracurricular Activities

If your child wants to join the Cairns representative netball team or take advanced music lessons, and the other parent hasn’t agreed to share the costs, you’re responsible for the full amount.

This doesn’t mean the other parent is being unreasonable – they might have genuine financial constraints or believe the activity isn’t essential. The key is having the conversation before enrolling the child.

Large One-Off Purchases

New laptops, gaming consoles, expensive birthday parties, or family holidays aren’t covered by child support. These require separate discussion and agreement. If your child needs a laptop for school, it’s worth discussing sharing the cost with the other parent. Many parents split large educational purchases 50/50 or proportionally to their incomes.

Types of Child Support Agreements

When standard child support doesn’t cover your family’s needs, you have options to formalise additional arrangements.

Limited Child Support Agreement

This is the simpler option. Both parents agree on the amount of child support and how it’s paid. There’s no requirement for independent legal advice, but both parents must have received a child support assessment from Services Australia first.

Limited agreements can cover cash payments, non-cash items (like private health insurance), or a combination. They’re useful for straightforward arrangements where both parents are cooperative.

Binding Child Support Agreement

This is more comprehensive and legally enforceable. It can cover unusual expenses like private school fees, additional extracurriculars, or specific cost-sharing arrangements. The critical difference: each parent must receive independent legal advice before signing. This protects both parties and ensures the agreement is fair.

Binding agreements are particularly useful when one parent has variable income, when there’s a significant income disparity, or when you’re agreeing to cover costs beyond the standard formula.

If you’re considering either type of agreement, speaking with experienced divorce solicitors can help you understand your options and protect your interests.

How Much Does It Cost to Raise a Child in Australia?

Understanding the real costs helps put child support into perspective.

Based on recent Australian data, here’s a realistic breakdown of annual expenses:

Expense Category	Average Annual Cost	What It Includes
Housing & Utilities	$4,500 – $6,500	Rent/mortgage share, electricity, water, gas
Education	$1,200 – $3,500	Public school fees, uniforms, books, supplies
Healthcare	$800 – $1,500	GP visits, dental, medications, Medicare gaps
Everyday Essentials	$3,500 – $5,000	Food, clothing, transport, personal care
Extracurricular Activities	$650 – $1,500	Sports, music, clubs (based on participation)
Total	$10,650 – $18,000	Varies by location, lifestyle, and number of children

Families in regional Queensland, including Cairns, typically face lower housing costs than Brisbane or Sydney, but higher transport expenses if children attend schools or activities spread across the region.

These figures show why child support alone rarely covers the full cost of raising a child – it’s meant to be a contribution, not complete coverage.

How Child Support Is Calculated

Services Australia uses an eight-step formula that considers:

• Both parents’ adjusted taxable incomes
• Each parent’s percentage of care
• The number and ages of children
• Any other child support obligations either parent has

The formula includes a self-support amount – currently one-third of the Male Total Average Weekly Earnings (MTAWE). For 2025, the MTAWE is $89,523, making the self-support amount $29,841.

This means each parent is entitled to keep $29,841 of their income before child support is calculated, recognising that parents need to support themselves before they can support their children.

For parents with less than shared care who have very low incomes, the minimum annual rate is $1,831 per child (2025), capped at three children. However, if you recently received income support, a lower rate of $534 may apply. If you have at least regular care (two or more nights per fortnight), you can apply to have this reduced or waived.

The formula is complex, which is why most people use Services Australia’s online estimator or speak with a family lawyer to understand what they’ll pay or receive.

Resolving Child Support Disputes

Disagreements about child support are common, but there are productive ways to resolve them.

For paying parents:

• Keep communication respectful and documented
• If you’re concerned about how support is spent, remember the receiving parent has discretion – but you can discuss major purchases
• If circumstances change (new job, health issues, additional children), you can apply for a reassessment

For receiving parents:

• Keep records of major expenses, especially if you’re asking the other parent to contribute to additional costs
• Address requests for shared costs promptly and with consideration
• Be transparent about your child’s needs

When you can’t agree:

Mediation is often the most cost-effective first step. A neutral mediator can help you reach a fair agreement without court proceedings.

If disputes involve significant amounts or complex financial arrangements, you may need to formalise an agreement with independent legal advice. Services Australia can also review assessments if circumstances have changed significantly.

For more serious disputes, you can apply for an Administrative Review Tribunal (ART) review within 28 days of a Services Australia decision. The ART can review assessment amounts, care arrangements, and other child support decisions.

Moving Forward After Separation

Child support exists to make sure children don’t suffer financially when their parents separate. It’s not about fairness between adults – it’s about giving children the resources they need for stability, health, and development.

The system allows flexibility because every family’s circumstances are different. A child in Cairns has different needs and costs than one in Sydney. A child with a disability requires different support than one without. Child support adapts to these realities through assessments, agreements, and reassessments when circumstances change.

Understanding what child support covers – and what it doesn’t – helps you avoid conflict, budget effectively, and focus on what matters most: your child’s wellbeing.

If you’re navigating child support questions, disagreements about payments, or need to formalise an agreement that covers expenses beyond the basics, professional legal advice can clarify your rights and obligations. Our experienced custody lawyers and family law team in Cairns has helped hundreds of parents reach fair arrangements that work for their families.