3 year rule for 30% reduction CSA

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Joe Black

Well-Known Member
9 January 2019
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6
154
Hi,

I have never heard of the 3 year rule until now, and I have spoken to the mob at the CSA many, many many times and they have never mentioned it either.
My understanding is that somewhere in the depths of the legislation there is a provision where I can claim a 30% reduction post separation.
Can some one please clarify if this is correct and how hard, as I have no doubt the CSA wont make it easy, it is to make a claim?
Also has ANYONE actually been successful??

Thanks
 

Atticus

Well-Known Member
6 February 2019
1,870
267
2,394
I have never heard of the 3 year rule until now, and I have spoken to the mob at the CSA many, many many times and they have never mentioned it either.

Can some one please clarify if this is correct and how hard, as I have no doubt the CSA wont make it easy, it is to make a claim?
There is a provision in the act to have an amount (UP to a maximum of 30%)of post separation income excluded from your adjusted taxable income for UP to 3 years .... It's meant to give newly separated parents assistance to re-establish themselves, BUT, There are MANY hurdles, & your right, it's not something they advertise.

The Registrar may exclude the additional income from the parent's adjusted taxable income if the following requirements are met:
  • the parents must have lived together (2.1.1) on a genuine domestic basis for at least 6 months (section 44(1)(a))
  • the last separation of the parents occurred before the application for administrative assessment was made (section 44(1)(b)(ii))
  • the application is made within 3 years after the last separation of the parents (section 44(1)(b)(i))
  • at the time of the application, the parents remain separated (section 44(1)(c))
  • the income must have been earned, derived or received in accordance with a pattern of earnings that was established after separation with the other parent (section 44(1)(d)(i)), and
  • the income must be of a kind it is reasonable to expect would not have been earned, derived, or received by the parent in the ordinary course of events (section 44(1)(d)(ii)).
SOURCE >>> 2.5.2 Additional income earned post separation | Child Support Guide
 

Joe Black

Well-Known Member
9 January 2019
40
6
154
Thanks Atticus,
so does this mean when the couple separated (and never got back together) or is this the date of the divorce. Both can be different.
Also if the criteria is met, what are the chances in someone being successful, or does it mean a trip to the AAT?
 

Atticus

Well-Known Member
6 February 2019
1,870
267
2,394
so does this mean when the couple separated (and never got back together) or is this the date of the divorce. Both can be different.
Divorce date has nothing to do with it, it's ALL about date of final separation, & the application must be within 3 years of that date ..... If all the criteria are met ( the excluded income sources are fairly narrow, but one accepted source is if a separated parent cashes out a leave entitlement within 3 years of final separation so that could be useful if people knew about it ) It's still capped at 30% maximum reduction though :rolleyes: If the application is knocked back there's still the usual appeal process ... No idea of the stats on it sorry.