NSW Does increase in salary take immediate effect?

Discussion in 'Family Law Forum' started by Bucko, 16 September 2018.

  1. Bucko

    Bucko Active Member

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    Hi all

    I might be changing job for one with a higher salary. Do I need to tell CS, and if I don't what will happen next year when I submit my tax return?

    E.g. Made up numbers, but if I am paid 100k this year and pay 10k CS, then I start a new job tomorrow on 200k. If I tell CS tomorrow I would expect my payment to go up to 20k, but what happens if I don't tell them until next july? Will they come after me for the extra 10k I should have been paying between now and then?

    Hope that makes sense!!
     
  2. sammy01

    sammy01 Well-Known Member

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    No - CSA collect based on the previous year's income. They will re-calculate from the time either YOU or your ex does their tax next year.
    My advice... As soon as CSA notify you that the ex has done her tax and they have done a re-assessment based on her tax - get your taxes done asap after that as they will backdate to who ever did their taxes first
     
  3. Bucko

    Bucko Active Member

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    Great. Thanks for the advice!
     
  4. SamanthaJay

    SamanthaJay Well-Known Member

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    Sammy, not sure I'm reading right - as soon as CSA notify you that ex has done her tax and CSA do a re-assessment based on her tax, get your taxes done asap after that as they will backdate to whoever did their taxes first - but hasn't the ex already done them if CSA have notified you and too late if you get yours done after that?

    CSA work in weird and wonderful ways. My partner has just received notice that CSA recently received a request from his ex asking them to change the child support assessment by no longer applying the fixed rate assessment. They've accepted her application as they are satisfied that her current income is less than half of what it was last tax year. That means minimum child support from her. He has 100% care.
     
  5. sammy01

    sammy01 Well-Known Member

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    My understanding is Yes... I do my taxes. They do a provisional re-assessment. When the ex does their taxes they reconcile the two and say that from the time they were notified of my income the fortnightly amount payable was $XX. It keeps the payer honest (I wish) because otherwise if they have pay rises they have no motivation to do their taxes so they can avoid the additional payments owed due to the additional income.

    Hey Bucko - GOOD NEWS... There is a rule that if you prove you're working more to gain financial stability caused by the break up you could get the additional income quarantined IF it is in the first few years since separation.

    Samantha - YEP they work in weird ways. My advice is based on their rules. The way they apply their rules seems strange at best at times. BUT appeal to AAT - they tend to get it right. You could also appeal their decision as she has demonstrated a capacity to earn. Unless she is doing part time work to take up study to improve income down the track, or has some other valid excuse - I reckon you have an argument that she is trying to avoid paying.... Challenge them
     
    SamanthaJay likes this.
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