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CSA assessable income - Departmental response made

Can you reduce the amount you pay through salary sacrifice

If you earn $100k per annum and need a car to carry out your job and this reduces your income by $20k per annum, can you reduce the amount you're assessed on by the same amount eg, you only earn $80k per annum. (Figures used are for illustrative purposes only).

Found the following links but don't fully understand the terminology.

http://www.csa.gov.au/guide/2_6_14.htm#incomeandearningfringebenefs

http://www.csa.gov.au/media/060502.aspxhttp://www.csa.gov.au/media/060502.aspx

I've got to get back to the CSA before the end of this week with the amount I earn.

I've asked a similar question previously, but received differing responses. I need clarification.

Any help appreciated. :thumbs:

Cheers

Mister_Pieman

Your ATO income is gross less ATO accepted expenses and this is what the CSA will assess you on. They will also add in other niceities such as a company car at $7,500 pa unless you can prove you do not use it privately.

In your case it will be the car costs, depreciation, loss of interest etc less percentage for private use. Cannot see you making $20K on that.

Salary sacrifice is technically deffered payment of salary so the CSA add that amount back in because there is a benefit being accrued from it

In you are earning $100k pa you should have an Accountant - they are worth their weight in gold

Departmental response

Mister_Pieman said
If you earn $100k per annum and need a car to carry out your job and this reduces your income by $20k per annum, can you reduce the amount you're assessed on by the same amount eg, you only earn $80k per annum. (Figures used are for illustrative purposes only). I've asked a similar question previously, but received differing responses. I need clarification.
Any help appreciated. :thumbs:
Cheers
Mister_Pieman

Departmental response

Assessments are based on the child support income, which is the taxable income, (as defined in the Income Tax Assessment Act) for the last relevant year of income plus supplementary amounts for the last relevant year of income.

Supplementary amounts comprise exempt foreign income, rental property loss and reportable fringe benefits (fringe benefit amounts with a total taxable value of at least $1,000).

More information about supplementary amounts can be found in Part 2.4.1 of The Guide, CSA's online law and policy guide at The Guide Part 2.4.1

The effect an individual's car expenses has on their child support assessment is directly linked to the way those expenses are treated in regard to their taxable income and/or included as a reportable fringe benefit amount.

Information on how the CSA regard income arrangements can be found in The Guide Part 2.6.1

Queries about individual cases should be addressed to the Child Support Agency

Executive Secretary - Shared Parenting Council of Australia
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Mister_Pieman said
If you earn $100k per annum and need a car to carry out your job and this reduces your income by $20k per annum, can you reduce the amount you're assessed on by the same amount eg, you only earn $80k per annum. (Figures used are for illustrative purposes only).

Found the following links but don't fully understand the terminology.

http://www.csa.gov.au/guide/2_6_14.htm#incomeandearningfringebenefs

http://www.csa.gov.au/media/060502.aspxhttp://www.csa.gov.au/media/060502.aspx

I've got to get back to the CSA before the end of this week with the amount I earn.

I've asked a similar question previously, but received differing responses. I need clarification.

Any help appreciated. :thumbs:

Cheers

Mister_Pieman



A guest has posted this so we are unsure how the guest will see the reply however it is similar to previous and will be responded to by SPCA Secretary

Last edit: by OneRingRules

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