VIC Child Support Agency - Clarification of Ex's Tax?

[mazzz]

Hi,

I'm trying to work out how these Child Support Agency calculate taxable income.

I do my tax return every year, so Child Support Agency has this information readily available. My ex hasn't done her tax since we separated.

My ex's income (according to Child Support Agency estimate) is $2000 and I'm not sure how this is derived. She works full time, however, I think its cash in hand. Shouldn't she still have to put down what she earns from Centrelink?

This is what I have estimated from their website.

Parenting Payment - Single/ Fortnightly /yearly
Parenting Payment - Single - $737.10
Rent Assistance - $0.00
Energy Supplement - $12.00
Estimated Centrelink payment - $749.10 / $19,476.60
Family Tax Benefit Part A - $93.94
Family Tax Benefit Part B - $73.64
Energy Supplement Part A - $1.96
Energy Supplement Part B - $1.40
Rent Assistance - $98.28
Estimated Family Assistance payment - $269.22 / $6,999.72
Employment income, Other income and Compensation Direct Deductions - $0.00
Gross total estimate - $1,018.32 / $26,476.32
Estimated taxation liability - $0.00 or 0%
Net total estimate - $1,018.32 / $26,476.32

Child Support Agency payment - yearly $6,000.00

Shouldn't her income then be the $26,476.32 per annum?

Thanks in advance.

 

[sammy01]

It is based on taxable income. FTB is not taxable. Child support is not taxable, neither is rent assistance, etc. Her cash in hand work isn't taxable because she isn't declaring it.

Single parent payment is taxable - approximately $20 000. So she only has to pay tax on $20 000 and child support assesses her on her taxable income - $20 000. So by not declaring income by not doing her tax, the tax office / child support can only go on the info from the last tax return.

In short, as the payor, you should do your tax ASAP only if your income has dropped from the previous year. Once CSA gets your new income from the tax office, they will adjust your CS down. If you got a huge pay raise, delay doing your tax to delay the increase in child support. But once the ex does her tax, you should do yours immediately to prevent having to back-pay.

None of this is very fun. You're paying more than you should because she isn't playing nice. What can you do about it? Not much. But you can rest well at night knowing that you're doing the right thing. She should struggle to sleep because she should be worried about getting caught out. Yep, I know - cold comfort to you.

 

[mazzz]

Thanks for that, her last tax return was a few years ago, at 40K.

She left that job and started an apprenticeship 3 years ago and since then her income is basically 0$. I realise there is not much I can do in regards to her getting cash and me don't expect her to do a tax return anytime soon.

I was just curious why CSA would accept such a silly limit when they know single parents receive the parenting payment which is a minimum of 20K. Especially when the child is before and after school care every day so, of course, she is working.

I know I'm doing the right thing and lodge my tax on time every year. It's something called Karma