Donate Child Support Calculator
Skip navigation

Filing a tax return

My husband has always ensured that he has his tax return filed by 31 October every year via a tax agent.  The problem that we are now encountering is that the payee (his ex) is not filing her tax returns and we believe that because of this he is paying more in CSA than he should be.

I rang and spoke to CSA about this and was told that she has until the end of March to file her 08/09 tax return if she is using a tax agent.  This is where I am not understanding the system and am hoping someone can tell me what should be happening by CSA rules. 

Surely if she does not have to file until the end of March, yet my husband has to have his done by 31 Oct (as told to us by CSA 2 years ago), there is a descrepancy of 6 months which may result in over payments.  When I spoke to CSA about this they said they could not force her to do a tax return and that if she does not file they will continue to estimate her income.  We know that she is not declaring all her income and has not done so for over 8 years.  She has boarders in the home and has never declared this income but we have decided not to do a COA about this because of the headaches it will probably cause us, and thought that this is probably more an issue for the ATO.

IF she does file a tax return  and it turns out that there have been overpayments during this 6 month period, will CSA credit it back to the payer?

Hoping someone can shed some light on the system and how it should work re this.
himandme said
I rang and spoke to CSA about this and was told that she has until the end of March to file her 08/09 tax return if she is using a tax agent.  This is where I am not understanding the system and am hoping someone can tell me what should be happening by CSA rules.

In this situation the CSA may make a determination as the parent has not lodged the tax return. Well that's what they have done and were certainly doing before Oct 31st, well at least for payers. I strongly suspect that they, are not treating parents equally and only applying this measure to liable/paying parents. The determination is basically a % increase according to CPI(not sure about that but along those lines) it's 3.30% for 2009. If they have not done this, then I believe that is ample evidence that they discriminate against paying parents simply to increase what they can collect or transfer.

If they have not made such an alteration to the other parent's income (ATI), then I'd suggest that you ask for an explanation as to why not when they have applied it far earlier in the year to many other parents. I believe that the CSA can very easily ascertain if the appropriate form has been submitted to request the delay due to using a tax agent.

With regards to adjustment, the new assessable amount would take overpayments into consideration and thus automatically credit them.

CSA Guide - 2.4.2 said
Where CSA has made a determination of a parents adjusted taxable income, the child support assessment must be amended immediately if CSA subsequently ascertains the parents adjusted taxable income (when the parents tax assessment issues) and that amount is different to the amount previously determined. CSA must also amend the assessment if it obtains other new information about a parents adjusted taxable income and makes a later determination of the appropriate adjusted taxable income amount (subsection 58A(1)).

There's a more in-depth discussion of this here CSA estimating Payers Income
If his ex is receiving family benefits there are new rules coming into effect that require them to lodge their tax returns or have benefits cut off. This might help you out.
himandme said
Surely if she does not have to file until the end of March, yet my husband has to have his done by 31 Oct (as told to us by CSA 2 years ago
Despite what you were told by the C$A your husband can also delay his tax return until the end of March if using a Tax Agent.  This is Tax Office policy and not determined by the C$A.

However, if you husband does this then the C$A will estimate his income as described above.  The potential risks are that the C$A over-estimate the real income, causing your husband to overpay until the return is lodged or that they under-estimate the real income causing an arrears amount once the return is lodged.

These potential amounts may be small and there may be other reasons why you would choose to delay your tax return (for example, if have a tax debt and want to delay the repayment).  However, you can choose to do it.
1 guest and 0 members have just viewed this.

Recent Tweets