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Reducing net income to have more money for my children

Can you salary sacrifice into superannuation so that this does not get included in my net income for CSA to derive my child support amount.

I have no confidence that all the money I pay in 'child support' is actually spent on my children.  Accordingly, I want to maximise the amount of money I have available to genuinely spend on my children.

I have been told that if I salary sacrifice into superannuation that this does not get included in my net income for CSA to derive my child support amount.

The reason I ask is because I also receive potentially very high bonuses (paid monthly), but if I include these numbers I have to pay a lot more, but if I don't hit my targets I can't get any kind of refund.

My work offers the option of salary sacrificing bonuses directly into superannuation and would prefer to do this rather than live with the uncertainty of always getting arrears notices.

Does anyone know the technicalities of this or be able to direct me to further information?
Unfortunately you have been misinformed. :(  ALL pre tax deductions are added back for purposes of CSA calculations. You cannot deduct ANYTHING for purposes of calculating CSA opayments. ALL deductions are added back when the CSA are preparing the taxable income. ATO are quite happy with Salary Sacrifice and a myriad of other deductions for taxable income but for purposes of the CSA calcs nothing is deductable.

After July it gets a little better as joint incomes are taken into account and there is a credit for care. Read all about the changes happening to the CSA area in "The Guide" on this site.


Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 

Novated lease

I thought this was the case as well; however I have a novated lease car which reduces my income and CSA payments. I think it is a case of timing - if you had it in place before you separated, then that is fine; however if you put it in place after the separation, it becomes a naughty act. Probably linked to capacity to earn.

Executive Member of SRL-Resources, the Family Law People on the site (Look for the Avatars).   Be mindful what you post in the public areas. 
CSA have access to ATO - in my case to looked up my leave entitlements. They also regularly receive data from ATO each financial year. SO the system is DESIGNED to maximize the payments to PAYEE - bauise of 'DEADBEAT DADS'. They are quite rabid about the whole thing really.

People who have 'experience' and vendettas join CSA so they can "DO THEIR BIT' to redress what they see as issues in the community.

 Maybe I am not explaining myself well enough
LifeInsight said
Nearth2002 - I can confirm that you are correct. I currently do this. Your employer does not have to report salary sacrifice into super to the ATO. The only snag is if the ex gets wind of it and jumps up and down with the CSA and they investigate. Just don't tell anybody what you are doing and maintain your income at a reasonable level for reasonable child support assessments to be made.
Is this really an appropriate comment to make on a public forum that is indexed by Google?

Executive Member of SRL-Resources, the Family Law People on this site (look for the Avatars) Be mindful what you post in public areas. 

Accountability and Responsibility

Perhaps Site Management should edit the page headers for this page (and any similar 'problematic' threads) so that it WON'T be indexed by Google.

It would not be good that our discussion of important issues was limited by technology.  Or perhaps there should be a neutral closed area of the site that is not indexed, other than the existing non-SRL-R (strict membership requirements) area.

What our poster friend is discussing is protection from being ripped off by both a greedy ex and a controlling and supplanting government that wants to take his place as provider and protector of his children.  They want to steal his money, with no guarantee (oversight/accountability) that it will actually be spent on his children.  There is no accounting for this money and many tales have been told of Mum spending it on drugs, alcohol, cigarettes, gambling, clothes, shoes, perfume, chocolates, boyfriends, etc … anything but the children.  And the CSA does not care one little bit.  They are just obeying orders (Nazis) and they aren't ordered to ensure the money is really spent on the children.

Give that, a responsible parent would seek to minimise the losses to children and himself, so that he can responsibly save money to ensure he can provide for his children.
 Nearth have you considered making payments directly to places like school, out of school activities etc so you know exactly where some of the money goes?

When you are swimming down a creek and an eel bites your cheek, that's a Moray.

A few facts

I just had a CSA Change of Assessment that turned up my ex was using a salary sacrifice to both purchase a car and top up her super.

This was reducing her income by 20K per year. She had found a loophole that uses post tax deduction to cover the FBT component in each salary cycle. This meant their was no value in the "Declarable FBT" or "Supplementary Amount" parts of her Group Certificate, amounts the ATO would normally add back onto the gross income (Net of gross - Salary Sacrifice in this case) that is passed on Centerlink and CSA.

The investigator found that the super component was OK, but the vehicle not so. It came down to when the consumer gets the benefit and in the case of Super, this is deferred and taxed on payout. The car on the other hand produced an immediate benefit so was technically income.

The net benefit of the vehicle lease was marginal, maybe 1-2K over the costs of a standard owned vehicle. The real benefit was the extra 3K/annum she got from CSA as a result of growing the differential between our respective incomes. I am now looking into getting the money back with a 50/50 chance of success.

The worst aspect is that the change in incomes is summary and immediate. This will impact on her financial security, and hence on our kids. It always helps to check the focus on these things I reckon.

My general advice is to be careful being too clever in this area as the CSA do have investigative powers and can impose on you some time down the track. Your ex can always go to court and would have a fair chance of winning both repayment and costs for any underhand behaviour. I reckon your best option would be to get a documented decision from CSA, commenting on your intentions, that you can rely on at a later date.

Clearly this is addressed to the ethical and moral readers. Those that see a chance to diddle the system need not bother as I expect this window is going to close soon. Those that think they might be getting cheated by the ex ~ follow up a Change of Assessment application and good luck.
LifeInsight.

Of course this site is being monitored. The real problem is that people - despite using all kinds of user names sometimes have a habit of identifying themselves and what they are intending to do.

Executive Member of SRL-Resources, the Family Law People on this site (look for the Avatars) Be mindful what you post in public areas. 
LifeInsight said
Nearth2002 - I can confirm that you are correct. I currently do this. Your employer does not have to report salary sacrifice into super to the ATO. The only snag is if the ex gets wind of it and jumps up and down with the CSA and they investigate. Just don't tell anybody what you are doing and maintain your income at a reasonable level for reasonable child support assessments to be made.This will allow you to retain more income that you can then ensure is really directed toward your children.
I think the Secretary_SPCA was referring to the ATO tax return which collects salary sacrifice data etc. for purposes of taxable income calculation. Certainly if a taxation accountant is involved it seems to. However the issue for me to address is that raised by Dad4Life.
dad4Life said
Perhaps Site Management should edit the page headers for this page (and any similar problematic threads) so that it WON'T be indexed by Google. It would not be good that our discussion of important issues was limited by technology. Or perhaps there should be a neutral closed area of the site that is not indexed, other than the existing non-SRL-R (strict membership requirements) area.
Firstly Google is the least of our worries. CSA, FaCSIA and the FMC surely review this site regularly. The CSA must be using the site to train their officers as Matt Miller the General Manager's speech is certainly pulling hits (See the LFAA conference last year). Feedback from SPCA executive officers who are attending the CNSEG review meetings suggests that the site is being used by many in the legal fraternity.

Secondly Google is only one of many and AltaVista and DogPile are two other notable engines indexing here. The ONLY way for pages to be hidden and not indexed is for membership accounts that are accessing closed forums to be used to read the posts. You cannot turn off the header details and the Meta Data on an open forum or for that matter any other public page.

So what do we do about this? It is vital that poster identity is kept secured. We can guarantee this through the site controls so that is one thing. The fine line is drawn in posts that expose a poster's id and to that end the Moderators seem to be doing a great job there and all credit to them as many posts are corrected and edited for grammar etc.. I do not have any quick fix answer to the issue. The information posted is topical and real world so there is no point in quarantining individual posts that would make the thread unreadable.


Site Director
If you want to reduce your income I know this works for women in front of CSA and the courts.
This is an example not a suggestion or endorsement.

Get a doctor to say you are suffering from Chronic fatigue syndrome - build a pattern of sickness. there are no symptoms - just tiredness and stress. Spend your money on holidays and trips. Divest yourself of all money - after all the government takes the tax, the ex gets the rest anyway.

Take a package from your job, get a doctor to say you can't work for the rest of your life. Go on centerlink benefits.

I know at least one women who did this and CSA and the courts said it was fine. The government members I spoke to all said it was fine - the system was working as it was designed.

Advise CSA you are sick and seek and immediate change of assessment. Use the court examples ( CSA case in front of Mowbray) to show the precedent.

Live off centerlink benefits until you get better. Keep your doctor onside. There are no cures for chronic fatigue syndrome and there are no real tests. All you need is one GP. There are 2 in Canberra who will do this.

One day maybe you will get better again.

You will have no money but the government will support you and you wont have to work. Maybe after some time you ex will get a job and support you. Go for full custody of the kids. - after all you have more time to look after them now. You don't need money or income or a job to get full custody (see most women in court).

Kids live with you, ex works, you look after your health, government pays you instead of her. Its the same as it is now just the genders are reversed.

 Maybe I am not explaining myself well enough
Lose your job then study to be a lawyer - takes how many years?? by that time the kids have grown up and left home, you haven't had to pay csa and at the end have a high paying job…

As for change of assessment - I have one to fill in but it means that all the details of my finances are then sent to the EX - all the loans, debts, weekly household payments etc etc. I find that a real deterrant to applying for a change. CSA said it is so he can counter apply for a change or refute the details…

When you are swimming down a creek and an eel bites your cheek, that's a Moray.
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