The Australian Government has recently passed legislation to improve the process for parents who choose to estimate their income for child support purposes. These changes were implemented on 1 July 2010.
You can ask the CSA to base your child support assessment on an estimate of your income if your current income is 15 per cent lower than the income used in your assessment. Estimating income may be appropriate for parents who have experienced the loss of a job or contract or have a significant reduction in hours of work or overtime.
A copy of the Bill can be found on the COMLAW website.
Why has the process for lodging an income estimate changed?
The new process is simpler for customers who choose to estimate their income and provides a more responsive reconciliation of estimates.
With greater accuracy of child support assessments through the simplified estimate process, children will receive the appropriate level of financial support from their parents.
What are the improvements to income estimates?
The estimate period has changed to a maximum of 12 months, aligning to financial years. The 15 month child support period will still apply ensuring that assessments are based on the most recent income information available.
When you lodge an income estimate you will now be asked to provide your year to date adjusted taxable income and an estimate of your expected adjusted taxable income for the remainder of the financial year.
After the estimate period ends, and when the relevant taxable income amount becomes available for that year, your estimate will be automatically compared to your actual adjusted taxable income for the year.
Where your actual adjusted taxable income is equal to, or lower than, the estimated income, the estimate will be confirmed. If your adjusted taxable income is higher, your child support will be reassessed for the estimate period based on your actual adjusted taxable income.
When will the changes be implemented?
These changes took effect from 1 July 2010.
What do I need to do?
These changes will only affect you if you need to estimate your income after 1 July 2010. If you have already lodged an estimate of your income, the changes won’t affect your current estimate. You still need to call the CSA on 131 272 to update your current income estimate if your income changes.
If you need to lodge a new estimate of your income after 1 July 2010, a CSA Customer Service Officer can explain the new process to you.
Where can I get more information?
For further information you can contact the Child Support Agency by visiting the Child Support Agency website or calling 13 1272