Separated parents dodge $2bn in child support through system loopholes
Almost $2 billion in child support is unpaid in Australia because separated parents exploit system loopholes.
One woman lost child support when her ex-partner registered as self-employed to dodge payments. The government's child support scheme was owed almost $2 billion as of March 2026.
The scheme was created in 1988 to ensure separated parents contributed to their children's upbringing. Reforms in the 1990s shifted the system to rely on parental cooperation, giving separated parents greater freedom.
That opened gaps. Parents could register as self-employed or make private deals to dodge payment.
The government called the unpaid debt unacceptable. It leaves children without essential support and in some cases living in poverty.
- Almost 2 billion dollars
- Unpaid child support
- 1988
- Scheme introduction
- Emma's case
- Self-employed evasion
- Agency Collect only
- Measurement scope
Why it mattersSeparated parents and children in Australia are caught in a broken system where one parent can dodge financial obligations.
AustraliaThis directly affects hundreds of thousands of Australian separated families. If a parent becomes unreliable, the caring parent may have no recourse. The $2 billion owed is money Australian children should be receiving for housing, food and education.
✓ Claims checked against the source. checked 38 min ago
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