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Higher income to be included in current assessment

We think that payee has started to work a few months back and would like the updated income to be included in the child support assessment. Otherwise payee's higher income does not come into calculation until next years tax return. It would be very easy for the CSA to either consult with Centrelink or the ATO and find out if payee is working or not. CSA however refuses to find out. What are our options? Any ideas?
We had exactly the same issue and the only way that CSA become even slightly interested in finding out is through you lodging a Change of Assessment - Reason 8.

Unless and until you do this, CSA will do nothing to find out correct income for the payee.  They are just not interested in payees only the payer.

It is extremely frustrating that onus falls on the Payer to prove everything and no penalties are usually imposed on the payee if found to have not been forthcoming with respect to their income etc unlike what happens to the payer.

You can ask for the assessment to be backdated so that you can reclaim as much CS back as possible however, with every day that passes is another day that you have to find the money to pay in the first place.

Good luck!
After reading the Ombudsman report suggest you make an anonymous fraud report.  Make one to Centrefail as well.  After all, if you pay due to misleading contact a fraud has been perpetrated.
Optimistic said
We had exactly the same issue and the only way that CSA become even slightly interested in finding out is through you lodging a Change of Assessment - Reason 8.

Unless and until you do this, CSA will do nothing to find out correct income for the payee.  They are just not interested in payees only the payer.

It is extremely frustrating that onus falls on the Payer to prove everything and no penalties are usually imposed on the payee if found to have not been forthcoming with respect to their income etc unlike what happens to the payer.

You can ask for the assessment to be backdated so that you can reclaim as much CS back as possible however, with every day that passes is another day that you have to find the money to pay in the first place.

Good luck!
  People, you cant blame the CSA for the legisltaion that rules them. As far as i am aware if you suddeenly earn more income you dont have to say that you do, and when its reflected in your taxable income, the following year, the CSA will adjust accordingly. this does of course mean that people do pay more for the tax year the payee starts working more, but it also means that the payer could end up paying less if for instance the payee stops working and has already been assessed on the higher income in following years, swings and roundabouts….

The only way to change these is by a change of assessment, and this is not sided towards the payee, EITHER party can raise a change of assessment and then BOTH parties have to supply details to support their stand….

I have had no problems with the CSA and their fairness at all

thanks

They must find it difficult, those who have taken authority as the truth, rather than truth as the authority

Thanks for your replies. I can understand your point gooner. Payee however has not worked in many, many years, even though the child is in High School. Centrelink seems to be on her case and it would be nice if we get a bit of a reduction because she finally has started to support herself. I guess we will fill out the COA form and see what happens!
CSA are well and truly able top initiate a reassessment under COA reason 8.  They just don't/won't unless it involves a payer who may have some more dough.  Therefore the statistics about payer arrears are seriously flawed.  
Babuska, we had the same problem, hubby had to pay full amount for the entire year despite her working for at least 9 months.  They dont change anything until the next tax return so in the meantime they are raking in the dough.  Like Big Red said if it was the payer making more money they would asses it straight away.  Call the CSA and see if they have other options but that is what they told us….
In the meantime think about drawing down any credit you have on your mortgage and buying some blue chip shares.  At end of year any interest comes off your tax bill and your CSA drops for the next year.  Its tax minimisation (as opposed to avoidance) and entirely legal.  Of course, the purpose at doing it is to improve your long term financial position.  If CSA catch up with you with a reason 8 COA, just sell the shares to fund any liability and you will have had your increased tax return anyway.
Bigred, aren't any net losses added back onto the taxable income, like net losses from an investment property? How come you can reduce your taxable income with blue chip shares? 
Babushka, only rental poperty losses are automatically added back in.  Check the law and check with CSA though before doing anything.

If you borrow money to acquire an income producing asset the interest becomes deductible.  You can also deduct the cost of attending annual general meetings, info sessions, brokerage fees, part of your computer and so on.  

And right now with the share slump in place it is a golden opportunity to get into the market.  

In my case, every time I repay any principal from the mortgage I redraw it and buy some shares.  

Both parties are free to use whatever legal tax rules apply to their circumstance to reduce income.

Only rental losses are added back and I believe voluntary contributions of super are going to be added back next financial year.

CSA is calculated on taxable income, not gross.

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Artemis said
Both parties are free to use whatever legal tax rules apply to their circumstance to reduce income.

Only rental losses are added back and I believe voluntary contributions of super are going to be added back next financial year.

CSA is calculated on taxable income, not gross.
  And if you're the payee, taxable income minus $300.00 for tax deductions (which everyone can claim from ato without receipts). So a letter from csa informs us of?O_o

When 'Life' is hard and things are tough,

and you feel like you've had enough.

Remember always this one thing true,

Someone else depends on YOU.
Artemis said
and I believe voluntary contributions of super are going to be added back next financial year.

Just to clarify, that would only be pre-tax super contributions, not after tax super contributions. However I'm not aware of anybody who knows how this is actually going to be done, although I think I've seen it suggested that employers will have to include this on group certificates. If anyone knows more then please let us know.

overcsa, it is the payee's right to claim legitimate all tax deductions.  After all the name of the game is to provide a reasonable amount towards tyhe upkeep of your children.  That can only be achieved through a level playing field.
Mike,

Family Assistance should send out the estimate forms for FTB in a few months so there should be a place on the form to declare earnings salary sacrificed to super, if the change has been retained, as I think closing this loophole may snag more payees than payers.
Bigred said
overcsa, it is the payee's right to claim legitimate all tax deductions.  After all the name of the game is to provide a reasonable amount towards tyhe upkeep of your children.  That can only be achieved through a level playing field.
  Sorry Bigred I've been away for a while.  Yes I agree everyone is entitled to claim the $300 in tax deductions but I find it ironic csa are allowing this when no tax return has been lodged for six years!  And they have not deducted this amount from my partners taxable income amount.

When 'Life' is hard and things are tough,

and you feel like you've had enough.

Remember always this one thing true,

Someone else depends on YOU.
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