CS Income

• Child support income


  The income of both parents used to calculate their child support assessment
• Income shares approach


  Treats both parents' incomes in the same way to indicate their share of the costs of the child they are responsible to meet
• Calculating a parent's child support income

  1. ATI (Adjusted Taxable Income)

  2. Less self-support amount

  3. Less relevant dependent child amount

  4. Less any multi-case allowance
• A parent's ATI is a component used to calculate child support income
• Child support assessments are generally based on both parents' ATI for the last relevant financial year because this is generally the most up-to-date and accurate income information available to Services Australia
• The inclusion of supplementary amounts in the income base ensures that child support assessments are calculated according to each parent's financial capacity to provide for their children, regardless of how their income is structured
• Parents are not expected to pay child support on income that is subject to taxation
• ATI


  A parent's adjusted taxable income, which is the total of: taxable income for the last relevant year of income, reportable fringe benefits total for that year of income, target foreign income for that year of income, the parent's total net investment loss for that year of income, the total of the specified tax free pensions or benefits received in that year of income, and the parent's reportable superannuation contributions
• Last relevant year of income


  The last year of income under Australian taxation law that ended before the start of the child support period
• Where the parent is resident in a reciprocating jurisdiction, the Registrar can use information about the parent's income in that jurisdiction to determine the parent's overseas income
• If an application for post separation income to be excluded from a parent's ATI has been accepted then the parent's ATI will be the amount determined by the Registrar
• Where a parent has not lodged their tax return for the last relevant financial year, the Registrar may calculate a provisional income based on the income information available (make a determination of the parent's ATI)
• A child support assessment with a provisional income must be amended where the Registrar receives the parent's tax assessment (ascertains the amount of the parent's ATI)
• Taxable income for the last relevant year of income


  Generally, a parent's taxable income is the amount assessed by the ATO under income tax legislation for the relevant year of income
• For the purposes of child support, any assessable First Home Super Saver released amounts will be disregarded when working out a parent's taxable income
• Reportable fringe benefits


  The amount of reportable fringe benefits as defined in the Fringe Benefits Tax Assessment Act 1986 for the year of income
• Target foreign income


  The total of: the amount of the parent's foreign income as defined in section 10A of the SSAct that is neither taxable income nor received as a fringe benefit, and any other amount of the parent's income that is exempt from tax under section 23AF and section 23AG of the Income Tax Assessment Act 1936, less the amount of losses and outgoings incurred
• Total net investment loss


  The sum of: the amount (if any) by which the individual's deductions for the income year that are attributable to financial investments exceed the individual's gross income for that year from those investments, and the amount (if any) by which the individual's deductions for the income year that are attributable to rental property exceed the individual's gross income for that year from rental property
• Net investment loss


  The amount (if any) by which the individual's deductions for the income year that are attributable to financial investments exceed the individual's gross income for that year from those investments, and the amount (if any) by which the individual's deductions for the income year that are attributable to rental property exceed the individual's gross income for that year from rental property
• Financial investments


  • Shares
  • Managed investment schemes
  • Forestry managed investment schemes
  • A right or option in respect of any such investment
• Calculating net investment loss

  1. Consider gross income and related deductions for financial investments to determine if there is a net financial investment loss

  2. Undertake a similar exercise to identify if there is a net rental property loss

  3. Add the two loss amounts (if any) together to identify the total net investment loss
• Prior to the 2009-10 financial year only net losses incurred in relation to rental property investments were included when calculating an ATI
• Tax free pensions or benefits included in ATI

  • Disability support pension under SSAct Part 2.3 (including any youth disability supplement, if applicable)
  • Carer payment under SSAct Part 2.5
  • Invalidity service pension under the Veterans' Entitlements Act 1986 Part III Division 4
  • Partner service pension under the Veterans' Entitlements Act Part III Division 5
  • Income support supplement under the Veterans' Entitlements Act Part IIIA
• The amount included is the amount that is exempt from income tax, and not a bereavement payment, pharmaceutical allowance, RA, language, literacy and numeracy supplement, remote area allowance or tax-exempt pension supplement
• From 1 January 2022, the Defence Force Income Support Allowance under Part VIIAB of the Veterans' Entitlements Act ceased and is therefore not included in the definition of tax free pension or benefit in section 5 of the CSA Act. However, any payment of Defence Force Income Support Allowance under Part VIIAB of the Veterans' Entitlements Act made before, on or after 1 January 2022 remains part of ATI for child support purposes
• Reportable superannuation contributions


  Superannuation contributions that reduce the parent's taxable income (for example, salary sacrificed superannuation contributions), other contributions the employer makes to a super fund on behalf of the parent (that are in addition to the minimum contributions the employer must make), and any personal deductible contributions made to a super fund which are claimed as an income tax deduction on the parent's tax return under Subdivision 290-C
• Compulsory superannuation contributions from after-tax income are not reportable
• NDIS amounts are exempt from income tax and are not included in ATI
• Payments received under the National Redress Scheme are non-assessable for income tax purposes and are not included in ATI
• Territories Stolen Generations Redress Scheme payments are exempt from income tax and are not part of a person's ATI for general child support purposes
• A parent's child support income is their ATI (2.4.4.10), less the self-support amount, less any relevant dependent child amount, less any multi-case allowance
• Self-support amount


  The amount that is deducted from the parent's ATI for their own support
• Calculating the self-support amount


  ⅓ × Annualised MTAWE figure for the relevant June quarter (section 45)
• The annual value of the self-support amount is included in the table of basic values in 2.4.2
• Relevant dependent child amount

  The amount deducted from a parent's ATI when working out their child support income if they have a relevant dependent child in their care
• See 2.4.6 to see how the relevant dependent child amount is calculated
• Multi-case allowance


  The amount deducted from a parent's ATI when working out their child support income if they have been assessed for the costs of the children of more than one relationship
• See 2.4.9 Formulas 3 and 4 for information about how the multi-case allowance is calculated and for an explanation of how an assessment is calculated when one or both of the parents have multiple child support cases
• The Registrar may receive information that a parent's tax assessment has been amended by the ATO resulting in a different ATI. There are rules about when a child support assessment can be amended to reflect this new information.
• If the ATO issues an amended assessment of a parent's taxable income for the last relevant year of income before the Registrar makes the child support assessment, the Registrar will use the taxable income shown in the amended tax assessment.