Donate Child Support Calculator
Skip navigation

Underestimate Income

Do I get a refund?

My ex estimated her income this past financial year as $0.
Infact she has been working during the year but did not report this to CSA so my payments to her did not reflect the fact that she was working. Her income has in fact exceeded $50K for the year.
She has put in her tax return and CSA has issued me with a revision on the amount I pay to her next year. It's a significant reduction.
However what I would like to know is that, given this past financial year I have been paying on the basis that she has been earning $0 when she has been earing $50K.
Does that mean she will need to refund me? Based on the revised statement for next year, and the online calculator, I believe I have overpayed by $5K this past year.
Since the payee income that your assessment was based on was an estimate, I believe the CSA can reconcile the assessment for the period against the actual income and your account should be in credit.

Since this will result in less $$ being transferred, the CSA will likely not pursue this on their own - you will probably have to chase this up with them.

I'd suggest doing it in writing…
I hope the following is self-explanatory, if not then please ask:

CSA Guide - 2.5.1: Income Estimates said
Estimate penalties

A person will be required to pay an estimate penalty when CSA reconciles their estimate and their actual income for a year of income less any applicable year to date income amount is 110%, or more, of their estimated ATI for the year (section 64AF).

The penalty is 10% of the difference between the liability that would have applied if the original estimate or estimates was used to calculate the assessment, and the assessment(s) amended under section 64AA following reconciliation (section 64AG(1)). An estimate penalty is a debt due to the Commonwealth (section 64AG(2)).

Here's a link to the respective section of the CSA Guide The CSA Guide - 2.5.1: Income Estimates

OK thanks. Will do.

Really however you would expect a government department to work this out and intitiate the repayment method themselves rather then just allow the payer to be hoodwinked. Others more ignorant then I would not recognise and then pursue overpayments with CSA I am sure. Most would just expect a government department to do the right thing.

My ex has no clue as to how CSA calculates the amount I pay to her. I raised the possibility with her that her payments were likely going to go down next year, she was quite taken aback by that, resulting in some nasty emails accusing me of just trying to get out of meeting my responsibilities etc etc blah blah. She has no clue right now that she has been overpayed $5K this past year. It's going to be an issue to say the least.
            if there is an overpayment the CSA are very likely to try to persuade or even con you into gifting the overpayment. I'd suggest that you make it very clear, if you do not wish any overpayment to be gifted and thus lost, that you expect that the overpayment is not gifted and that it is used only to offset any liability.

I'd also suggest that it would be in the interest of all taxpaying Australians and permanent residents, genuine welfare recipients, and families of these, that you ensure that the other parent has notified Centrlink/the Family Assistance Office.

Alternately, if the other parent was not in receipt of income support when they supplied the $0 income estimate, then you may wish to check whether the Fixed Rate of Child Support was applied. This amount is currently $1193 annually and should be applied as an offset to the liability, if a recipient parent's taxable income is less than the parenting payment single (currently $14615) and there is no genuine reason given for the income to be that low.
Certainly wont be gifting any overpayment.

Still trying to pay off the 10's of thousands in legal fees I incurred sorting this nutter out.
1 guest and 0 members have just viewed this.

Recent Tweets