Child Support for Low Income Parents in Australia

When a parent earns very little — or nothing — child support does not disappear entirely. The formula has a built-in floor. Below a certain income level, liability drops to a minimum annual payment rather than continuing to fall proportionally with income.

Use the child support calculator to estimate how low income affects your specific case.

What Happens If a Parent Earns Very Little?

The formula is designed to produce a non-zero result in almost all cases, even when one parent has very low or no income. Here is why:

• Every parent is allocated an income for formula purposes, even if that income is zero
• If a parent's taxable income is zero (or very low), Services Australia may use a default minimum income instead
• The minimum child support amount (the floor) applies when the paying parent's assessed income produces a liability lower than the minimum

In practice, a parent with genuinely low income will pay less than a parent with a high income — but they rarely pay nothing.

The Self-Support Amount Explained

The self-support amount is a fixed figure that Services Australia deducts from each parent's income before calculating child support. It represents the income a parent needs to support themselves.

For recent years, the self-support amount is approximately $29,000–$30,000 (updated periodically). What this means in practice:

• A parent earning $28,000 per year has effectively zero child support income after the self-support deduction — their liability defaults to the minimum annual rate
• A parent earning $35,000 has approximately $5,000–$6,000 in child support income, which produces a modest but real assessment
• The self-support amount protects low-income parents from being assessed on income they need to cover basic living costs

How Care Percentage Still Affects the Result

Even when a parent earns very little, their care percentage matters:

• A low-income paying parent with no overnight care will owe the minimum annual amount
• A low-income paying parent with 35%+ care may have their assessment reduced further or eliminated, depending on the other parent's income
• A low-income receiving parent with majority care will receive more from a higher-earning paying parent — the assessment is driven by the paying parent's income, not the receiving parent's

This is why low-income cases can still involve meaningful payments — it is the higher-earning parent's income, not the lower-earning parent's, that primarily determines what is paid.

How Centrelink and Income Support Affect Child Support

If a parent receives income support payments (such as JobSeeker, Parenting Payment, or Youth Allowance), Services Australia treats them as having income at approximately the Parenting Payment Single rate for formula purposes — even if their actual Centrelink payment is lower.

• Receiving Centrelink does not mean a parent is exempt from child support obligations
• If the paying parent is on Centrelink, they will likely be assessed at the minimum annual rate — but that minimum still applies
• Child support received by the receiving parent may be offset against their Centrelink entitlements — contact Services Australia for details on your specific payments

→ See how Centrelink income support affects child support for detail on specific payment types and the minimum annual rate.

When Services Australia May Look at Earning Capacity

Services Australia has the power to assess a parent based on their earning capacity rather than their current income if it believes the parent is deliberately earning less than they are capable of.

This is called a change of assessment and can be initiated by the other parent. Factors that may lead to an earning capacity assessment:

• The parent voluntarily reduced their income without clear reason
• The parent's lifestyle appears inconsistent with their declared income
• The parent has a recent history of significantly higher earnings with no explanation for the change
• The parent has a business structure that reduces apparent taxable income

An earning-capacity decision can result in a much higher assessment than the current income would produce. → See the change of assessment guide for more detail.

Worked Examples

Example 1: Low Income, Low Care

• Paying parent income: $22,000 per year (below self-support amount)
• Care: 10% (37 nights per year)
• One child

Result: The paying parent's income falls below the self-support amount. They are assessed at the minimum annual rate — recent figures have been around $450–$600 per year, paid directly to the receiving parent.

Example 2: Low Income, Shared Care

• Paying parent income: $28,000 per year
• Care: 40% (146 nights)
• Other parent income: $75,000 per year
• One child

Result: The paying parent's income is at or near the self-support threshold, giving them very low child support income. At 40% care, they are in the shared care band and receive cost offsets. With the other parent earning significantly more, the direction of payment may actually reverse — the higher-earning majority-care parent could end up paying the lower-earning shared-care parent, depending on the income gap.

This is a common surprise in shared care, low-income scenarios: the formula can produce a payment in the unexpected direction.

Frequently Asked Questions

→ Read more: change of assessment | estimate vs formal assessment | Centrelink and child support

This page provides general information about the child support formula in Australia. It is not legal advice. If you believe earning capacity is being understated, or if your income situation is complex, consider seeking advice from a family lawyer.