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My assessed income

I need some sound advice.
I have the house I live and an investment property.
I am broke due to Lawyers Fees for Family Court, and ongoing CSA Tribunal Hearings over my income.
I need to sell my investment property to gain the funds to live, fight for my child, and pay for Lawyer fees etc.

How does CSA look at this. ?
Do they class this as income. ?
What will be the CSA result. ?
I empathize with your situation.  Can I suggest you discuss your current issues with a financial adviser, preferably a Certified Financial Planner??? A decent adviser will be Should be able to assist in getting you the best possible outcome.

As general information… The sale of a primary residence doesn't attract a capital gains liability. An investment property does. As soon as a capital gains event occurs it shows on your tax return… Which the CSA will be notified of…

I would discuss with an adviser if the sale of your primary residence (if an option) would help you.. The sale of the investment property would incur capital gains tax, then I wouldn't doubt have the CSA call you a week later wanting their cut…

There are alot of other issues and possibly solutions, but more info would be needed by an adviser (who would chat to your solicitor) on getting you the best possible outcome.
They would only intervene in the sale if you had a significant child support debt they were trying to collect and they knew about the sale.

Otherwise there should be no drama. Any capital gain (remember you get 50% discount if you owned the property for more than 12 months) that you receive should be included in your next tax return which will form your taxable income which C$A will use (after ATO has processed the return) to calculate your next year's child support liability. Any rental losses claimed will also be added to your taxable income by C$A.

C$A may also use the tax return data to reconcile any periods of income estimates you have been on.

However as ironzy suggests you may be better off selling your residence and moving into your investment property if practical so there is no capital gain event.
How does CSA intervene in the sale of a property?

Do they approach an estate agent like they approach an employer when garnishing wages?

Do they let you know they are going to intervene?

My assessed income

How much is a Financial Adviser, or a Certified Financial Planner going to cost ?

Yeah "How does CSA intervene in the sale of a property?" what does that mean ?

Cannot move into investment property as it is a small warehouse, classed as a commercial property.

Was thinking of selling both, … house and warehouse, buying a better house to live, with some cash over to fund court and lawyers.

Does that make a difference ?
They will serve the settlement agent with a notice to pay. No they don't let you know however the third party usually does out a courtesy.

This is why I advise that you should file your tax returns yourself and not let your tax agent do this. If not then C$A have access to all the info you give to your accountant or tax agent and they can find out what you own etc….

The best way to stop C$A easily getting your financial info is to allow your tax agent of accountant to do the work and then provide the info to you so you can fill out the return and file yourself.

If you have a company and your accountant is the registered office you will need to change this with ASIC to your home address as C$A will demand info from you accountant if they find out who they are.

As I said above you need to work out your assessable capital gain including rental gains/losses when you sell the investment property to see what impact it will have on child support - however the capital gain will only impact you for a year afterwards.

This forum relates to some issues I am having with CSA.

You said they will serve the settlement agent with a notice to pay.

Do they have to establish ownership first ?

Janus said
How does CSA intervene in the sale of a property?

Do they approach an estate agent like they approach an employer when garnishing wages?

Do they let you know they are going to intervene?

The could serve a 72A notice if the liable parent has arrears.

The CSA Guide - 5.2.9: Collecting from Third Parties said
What if a real estate agent is holding funds from which fees are to be deducted?

CSA can issue a section 72A notice to a real estate agent for funds held as a deposit against the sale of a property by the child support debtor.

The deposit remains the property of the purchaser until the sale of the property is finalised. Once the sale of the property is finalised, the notice will not be effective against any portion of the funds that are to be retained by the real estate agent for payment of fees due to the real estate agent under contractual arrangements existing between the agent and the child support debtor (as vendor of the property). The agent will only be required to remit to CSA any amount that would ordinarily be transferred to the child support debtor.

My assessed income

 Mike T

CSA: We have issued DPO because, we have information that you are leaving the country permanently you must furnish debt in full or the DPO will not be lifted.

What are my options, I don't have the funds or assets to pay the debt my case has not been heard, there may be no debt.

CSA: Your options are, there are no options you must pay the debt in full.

If I can get my super released will you except that as a guarantee for my return, my wife is travelling on a 6 month holiday visa, we will be returning.

CSA: No, If your super covers the debt in full we will lift the DPO.

If my wifes property sells she is willing to have the funds held in trust by a mutually agreed solicitor, to guarantee our return.

CSA: No, your wife can pay the debt with the proceeds of the sale.

FOI showed, CSA conversation with Ombudsman, that I offered to pay the debt with the proceeds of my wife property. They told the Ombudsman they got a call that there was a buyer, the sale had progressed. CSA recorded I made no attempts to guarantee my return.

This conversation took place when the property was no longer on the market.

Sent FOI to amend records confirming I never at any time offered to pay the debt with my wifes property. After 3 months rang CSA about amendment application, CSA say we can not locate that file.

Put simply I repartnerd someone who owned a small empty block purchased several years before our union. I have no financial interest in the property, the property remains unchanged and does not create an income. It has decreased in value since our union.

Can CSA move in again and make any claims on the property?
With regards to the DPO, your options are to either pay the debt in full, to make satisfactory arrangements to discharge the debt, or to appeal against the order through the Federal Magistrates or Federal court. See the The CSA Guide - 5.2.11: Departure prohibition orders for more detail. You may also be interested in reading CSA needs to pay sharper attention to detail.

Janus said
Can CSA move in again and make any claims on the property?

Perhaps but likely not. Most certainly the CSA have no right whatsoever to expect or demand that your spouse pay your debt or pay your child support. They could try distorting the "property" aspect of a reason 8 change of assessment. However, this would only affect the amount of the ongoing liability. Which the guide explains as:

The CSA Guide - 2.6.14: Reason 8 - a parent's income, property, financial resources, or earning capacity said
Asset rich but income poor

In some cases a parent might have substantial property and assets but a low income used in the child support assessment. CSA may consider the parent's property and assets, as well as any income, in deciding the appropriate rate of child support to be paid (Abela and Abela (1995) FLC 92-568 and Bendeich and Bendeich (1993) FLC 92-355).

CSA will take into account that child support is intended to meet the day-to-day needs of the child, when considering a parent's capacity to contribute to supporting a child.

It is not sufficient for a parent to say that they are unable to pay child support because their assets produce little or no income or will only produce income at some point in the future. CSA will consider whether the parent has the capacity to restructure their financial affairs to produce an income stream from which to contribute to child support. In these cases, CSA may:

    * identify the relevant assets, determine ownership of such assets and enquire as to any structures designed to divest assets;
    * consider whether the assets are income-producing assets and, if so, when such income will be produced;
    * ascertain the value of the assets;
    * ascertain the parent's ability to convert the assets, or some of the assets, to cash;
    * consider the parent's ability to finance his or her lifestyle; and
    * consider the impact of any property settlement on the parent's assets.

CSA does not have to identify any specific source, property or asset from which a parent should meet the obligation to contribute to the support of the child. CSA need only consider the parent's financial resources as a whole, including any capacity to borrow against the assets (Dwyer v McGuire (1993) FLC 92-420).

However the guide quite clearly refers to "a parent's" not a "couple's, of whom the parent is part". This is borne out be the legislation which also specifies "a parent":
Child Support Assessment Act Section 117(2)(c)(ia) said
(ia)   because of the income, property and financial resources of either parent; or

The CSA have also not furnished all the information. An option that is available, although very unlikely to be taken is for non-pursuit of debt. This is covered in Section 5,7,1 of the CSA Guide.

Also the CSA could take the matter to court  to obtain a warrant of execution, which could include real estate. As per

The CSA Guide - 5.4.3: Enforcement by civil action said
Warrant of execution

A warrant of execution is a request addressed to the bailiff or sheriff of the court, asking them to visit the debtor's residence, or other place at which they may have assets. The bailiff or sheriff will seize any goods or possessions which they believe may be saleable in an attempt to satisfy the judgment debt. Often items such as cars, electrical equipment, whitegoods, or furniture, will be seized. Generally, clothes and equipment necessary to enable the debtor to pursue their employment are not able to be sold. Bailiffs hold auctions to sell the goods seized from debtors.

In more senior courts, where the debt is large, the sheriff may also have power to sell real estate, or land and fixtures.

The CSA could also try to have the debt enforced under the Family Law Act (The CSA Guide section 5.4.4). Especially have a look at the "Twelve Month Rule" . Section 5.4.6 may also be of interest (setting aside transactions).
They can't touch the property because you do not own it. You may have some options to deal with the debt through the court it the debt goes back more than 18 months.
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