VIC Implications of Declaring False Shared Care for Family Tax Benefit?

Discussion in 'Family Law Forum' started by Dermie23, 24 November 2017.

  1. Dermie23

    Dermie23 Member

    21 November 2017
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    My wife and I are in the process of separating, and she has mentioned increasing her care % that we put on the family tax benefit forms, so her benefits will increase.

    I earn substantially more than her, so I won't be entitled to benefits. Using the calculators I can see even with a slight increase in care % on her side, the payments to her go up quite a bit. eg: 2 kids @ 8 days per fortnight her payments would be $407 per fortnight. Increase that to 10 days its $621 per fortnight.

    Child support will be a private agreement between us (Ill be paying daycare, school, health etc), so they won't know exactly how much I am paying, or force me to pay the equivalent of the kids being with her for 10 days per fortnight.

    I'm a bit of a straight shooter, and would prefer to declare the correct care %, however I am very curious as to what other implications there could be if the care % was falsely declared ? (Apart from getting found out obviously) It has no benefit to me, so I am reluctant to do it.
  2. Rob Legat - SBPL

    LawTap Verified Lawyer

    16 February 2017
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    Here are two potential downsides off the cuff:

    1. If Centrelink seek information from you to corroborate the claim, you could potentially be committing fraud as an accessory if you provide wrong information, which wold be a federal offence; and

    2. If your ex have a breakdown in your parenting relationship, your child support liability will be calculated off your care percentage. You could find yourself paying a lot more than you should be - especially if she elects to have the Agency collect chidl support from you. Don't say it won't happen - it does.
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  3. Corinne

    Corinne Well-Known Member

    31 October 2015
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    Yeah. Once she learns how much the child support agency favours certain individuals, your private agreement won't last long. Keep it accurate.
  4. Lennon

    Lennon Well-Known Member

    11 September 2014
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    I think you can waive your entitlement to centrelink benefits in her favour. My DP’s ex did this for her and it was 100% above Board.
  5. sammy01

    sammy01 Well-Known Member

    27 September 2015
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    You'll pay more child support - seems like you're willing to do that anyways? My understanding is that she has to tell centrelink how much you're paying her. and if you pay extra she gets less family tax benefit...

    If you're prepared to scam - it will be to your financial detriment.... BUT if you are.... Then pay extras.... pay the pre-school fees for example.... She doesn't have to declare that because you're not paying her.... The beneifit to this scam is that IF she stops playing nice you stop paying... so both parties have a good reason to play nice.

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