LEGAL please Child Support Assessment - TAXABLE INCOME

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Frank Luffs

Active Member
10 February 2020
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Western Australia
Can CSA take my Disability Support Pension as "taxable" income into calculation for care payments ?
My understanding was cannot as not taxable income - and ONLY can if you’re Age Pension age.
Please I need legal on this, and perhaps link to pdf of website.
 

Rob Legat - SBPL

Lawyer
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16 February 2017
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Go here: 2.4.4.10 Adjusted taxable income | Child Support Guide
This is the Child Support Guide used by CSA.

Under the heading "Tax free pensions or benefits":
"Only the following tax free pensions or benefits received by a parent are included in the adjusted taxable income:
  • a disability support pension under SSAct Part 2.3
  • a wife pension under SSAct Part 2.4
  • a carer payment under SSAct Part 2.5
  • an invalidity service pension under the Veterans' Entitlements Act 1986 Part III Division 4
  • a partner service pension under the Veterans' Entitlements Act 1986 Part III Division 5
  • income support supplement under the Veterans' Entitlements Act 1986 Part IIIA
  • Defence Force Income Support Allowance under the Veterans' Entitlements Act 1986 Part VIIAB
but only the amount that is:
  • exempt from income tax, and
  • not a bereavement payment, pharmaceutical allowance, rent assistance, language, literacy and numeracy supplement, remote area allowance or tax-exempt pension supplement.
Note: Pensions and benefits are included as income for child support purposes only if they are classified as taxable income or if they are specifically listed in the tax free pensions or benefits section above." [emphasis added]
 

Rob Legat - SBPL

Lawyer
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16 February 2017
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Gold Coast, Queensland
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The sites you've quoted here talk about increases in the amount of income - not whether it is considered taxable income for the purposes of child support.

The government has made a determination of what is and isn't taxable income for the purposes of child support. That does not mean that that income is actually taxed - that's a different matter.