Can we make a private child support agreement in Victoria?
Can We Make a Private Child Support Agreement in Victoria? (2025 Guide)
For separated parents across Melbourne and regional Victoria — clear, practical and child-focused.
1) A first-person, fun introduction
The first time a friend asked me, “Can we just agree on child support ourselves?” I pictured two parents at a café, drawing up a treaty on a napkin between babycinos.
Look, I love a good napkin plan as much as anyone — but when it comes to child support, the paperwork matters. A clear, well-drafted agreement can save years of awkward conversations about who’s paying for soccer boots, orthodontics, or that inevitable Year 10 camp that costs as much as a small car.
The good news? Victoria lets you set up private arrangements. The even better news? You can tailor them to real life — school fees, therapy, laptops, travel, you name it. Below, I’ll show you exactly how limited and binding agreements work, and how to pick what suits your family best.
2) Two types of private child support agreements
Limited Child Support Agreement (LCSA)
- Must sit on top of a current administrative assessment by Services Australia (Child Support).
- The agreed amount must be equal to or more than the assessed amount.
- Does not require each parent to obtain independent legal advice (though it’s still wise).
- Can generally be ended after a period (e.g., three years) or if the underlying assessment varies by a certain margin.
Binding Child Support Agreement (BCSA)
- No assessment required (though some parents still get one for context).
- Independent legal advice is mandatory for each parent before signing, and each lawyer must sign a certificate.
- Can set any amount (higher or lower than a notional assessment) and include creative terms.
- Harder to change or terminate — designed for long-term certainty.
Plain English: LCSAs are “lighter touch” and aligned to the government formula. BCSAs are more powerful and flexible, but require lawyers on both sides and are stickier to unwind.
3) Quick comparison: Limited vs Binding
| Feature | Limited Agreement | Binding Agreement |
|---|---|---|
| Needs Services Australia assessment? | Yes (current assessment required) | No |
| Legal advice required to sign? | Not required (but recommended) | Yes — independent advice & certificates |
| Amount can be below assessment? | No (must be at least equal) | Yes (subject to legal advice and fairness context) |
| Flexibility on non-periodic items? | Moderate | High (school fees, medical, activities, lump sums, in-kind) |
| Ease of change/termination | Easier (triggers & review periods) | Harder (needs new binding agreement, court, or specific termination events) |
| Best for | Short-to-medium certainty with formula alignment | Long-term certainty, bespoke arrangements |
4) What you can include (money + non-periodic items)
Good agreements are practical. Beyond a weekly/fortnightly amount, you can specify:
- Education: tuition fees, levies, excursions/camps, uniforms, textbooks, laptop programs, tutoring
- Health: gap payments, orthodontics, glasses/contacts, therapy (psychology, OT, speech), private health extras
- Activities: sport club fees, instrument hire, dance, competition travel, coaching clinics
- Transport: Myki passes, petrol for changeovers, parking for appointments
- Technology: school-approved devices, software subscriptions, internet contributions
- Insurance: health, student accident, device insurance
- “In-kind” items: paying the school directly, keeping receipts and crediting the other parent’s share
Tip: Be specific. “50% of school costs” is okay; “50% of compulsory tuition fees, levies and approved device program, payable within 14 days of invoice” is better.
5) How payments are made: private vs via Services Australia
Private collection
Parents pay each other directly (bank transfer) and keep records. Low admin if everyone is reliable.
Child Support Collect
Services Australia registers the agreement and collects payments (and can enforce if needed). Helpful when reliability is uncertain.
Hybrid options: Periodic payments can be private, while big-ticket items (tuition, braces) are paid direct to providers or split via reimbursement with receipts.
6) How to make one (step-by-step)
- Choose the type: Decide between LCSA and BCSA based on how much certainty/flexibility you need.
- Get the numbers: Sense-check with a current assessment (even for BCSA) so both sides see the baseline. Map care percentages and incomes.
- List the extras: Identify education/health/activity costs and how you’ll split or pay them. Define “compulsory” vs “optional”.
- Draft the terms: Spell out periodic amounts, due dates, indexation or review points, invoice approval process, and evidence for reimbursements.
- Pick collection method: Private payments (with bank references) or Child Support Collect. Consider direct-to-provider for school/medical.
- Get advice (especially for BCSA): Each parent obtains independent legal advice; lawyers sign certificates for the BCSA.
- Register it: Lodge with Services Australia so it’s recognised and enforceable through their systems if needed.
- Keep records: Save invoices, receipts, bank statements, and a simple expense log. Future-you will thank present-you.
7) Changing or ending an agreement
Limited Agreement: Usually easier to end/replace. Common triggers include time-based review windows or a significant change in the underlying assessment (e.g., income shift, care pattern changes).
Binding Agreement: Harder to vary or terminate. Typically requires another binding agreement (with fresh legal advice) or an application to set aside in limited circumstances (e.g., fraud, duress, material change causing hardship). Some agreements include termination events such as a change in care percentage or a child finishing school.
Practical tip: Build in sensible review points (e.g., “review at the end of each school year” or “on commencement of secondary school”), and define what happens on big life changes (relocation, special medical needs).
8) Pros and cons (with Melbourne realities)
Benefits
- Certainty: Everyone knows the amounts and who pays what (good for household budgeting).
- Tailored: Reflects your child’s actual expenses (e.g., selective-entry school, therapy plans).
- Fewer arguments: Clear rules for invoices, reimbursements, and deadlines prevent nickel-and-diming.
- Enforceability: Registered agreements can be collected/enforced via Services Australia if needed.
Watch-outs
- Lock-in risk (BCSA): Incomes or care patterns can change, but the agreement might not.
- Over-generous promises: Saying “I’ll pay all private school forever” can bite if circumstances change.
- Vague drafting: “We’ll split school costs” — which costs, exactly? When? How billed?
- Administration: Keep receipts, label transfers, and communicate about approvals.
9) Common mistakes (and how to avoid them)
- No legal advice on a BCSA: It’s required. Also, good advice often saves far more than it costs.
- Missing definitions: What counts as “compulsory school fees”? Are sports tours “optional” unless agreed in writing?
- Silence on indexation: Prices move. Consider CPI or an annual review meeting.
- No change-of-circumstances clause: If care shifts from 30% to 50%, what happens to periodic payments?
- Reimbursement chaos: Set deadlines (e.g., claim within 60 days; pay within 14 days of receipt with tax invoice).
- Ambiguous end dates: Clarify when obligations end (age 18 vs end of Year 12 if still full-time secondary education).
10) Sample clauses & practical scenarios
Scenario A — School fees
Clause idea: “Parent A will pay 60% and Parent B 40% of compulsory tuition fees, levies and approved device program at [School]. Payments to be made directly to the school by the due date shown on the invoice. Either parent may request copies of statements.”
Scenario B — Health & orthodontics
Clause idea: “Orthodontic treatment at [Provider] will be shared 50/50 of the out-of-pocket expense after any private health rebates. Parent obtaining the service will seek a written quote in advance and share it for approval (not to be unreasonably withheld).”
Scenario C — Activities & approvals
Clause idea: “For non-compulsory activities (e.g., interstate sports tours), the paying parent’s agreement is required in writing before costs are incurred. If agreed, the costs are shared 50/50. If not agreed, the proposing parent may choose to proceed at their sole expense.”
Scenario D — Indexation & review
Clause idea: “The periodic child support amount will be reviewed each 1 July, increasing by CPI (All Groups, Melbourne) unless otherwise agreed in writing.”
Scenario E — Change in care
Clause idea: “If the care arrangement changes by 10 percentage points or more for more than 12 consecutive weeks, the parties will meet within 21 days to agree a revised periodic amount or refer the issue to mediation.”
11) FAQ: tax, Centrelink/FTB, 18th birthdays & Year 12
Is child support taxable?
Ordinary child support payments are typically not taxable income for the receiving parent and not tax-deductible for the paying parent. Get tax advice for unusual “in-kind” arrangements or lump sums.
What about Family Tax Benefit (FTB) or Centrelink?
Private agreements can affect FTB entitlements because Services Australia considers your child support position. Make sure the agreement is registered so your entitlements reflect reality.
When does child support end?
Generally when a child turns 18. Many agreements continue to the end of Year 12 if the child turns 18 mid-year — include this expressly if that’s the plan.
Can we cover adult children (over 18)?
Yes, but that becomes a separate arrangement (often called adult child maintenance) and is handled differently. Get advice before committing.
What if someone stops paying?
If the agreement is registered, Services Australia can assist with collection and enforcement. You can also explore court-based enforcement if needed.
12) Final thoughts & recommended help
Private child support agreements are like well-made calendars: they don’t just tell you the numbers; they keep the year running smoothly. Whether you choose a Limited Agreement for a formula-aligned plan or go all-in with a Binding Agreement for long-term certainty, the goal is the same — a child-focused arrangement that’s fair, clear, and workable in real life.
If you’d like calm, Victoria-savvy guidance on which path fits your family — and drafting that avoids the usual traps — I recommend
Call A Family Lawyer.
They can map your options, build practical clauses (for school, health, and activities), arrange the right legal certificates for a Binding Agreement, and register everything properly so you can get on with parenting instead of paperwork.
Ready to get your agreement sorted?
Visit CallAFamilyLawyer.com.au for tailored advice on Limited vs Binding Child Support Agreements, smart drafting, and smooth registration — anywhere in Melbourne or regional Victoria.