A parents share of the parents combined child support income indicates the share of the costs of the child they are responsible to meet. The following are forms of tax free income accepted as forms of income for 'adjustable income' purposes.
- a disability support pension under Part 2.3 of the Social Security Act 1991;
- a wife pension under Part 2.4 of the Social Security Act 1991;
- a carer payment under Part 2.5 of the Social Security Act 1991;
- an invalidity service pension under Division 4 of Part III of the Veterans Entitlements Act 1986;
- a partner service pension under Division 5 of Part III of the Veterans Entitlements Act 1986;
- income support supplement under Part IIIA of the Veterans Entitlements Act 1986;
- Defence Force Income Support Allowance under Part VIIAB of the Veterans Entitlements Act 1986;
I wrote to the Minister for FAHCSIA and Human Services, whcih was passed onto the ATO in September 2010. Received an initial response that a reply would be forthcoming. NO reply yet.
Thanks for any advice
The wider issue is why something is treated as an exemption by the ATO and treated as assessable by the CSA. This is something that affects thousands of self-employed men and shows little sign of being fixed.
Theodor saidAnyone know why a commonwealth tax free education scholarship would not be included.
To be blunt, no I don't. However, I suspect that it may have been discounted as the likely recipient of such a scholarship would most frequently by, in regards to the application of CS, a recipient of CS. Thus it suits the FTB claw-back aspect to not increase the recipient's income. Under normal circumstances (i.e. not Change of Assessment) then this like many other possible payments/income are not included as income. Change of assessment, reason 8, is entirely different and very much allows someone who likely has very limited legal experience and very limited accounting experience to make legal decisions on complex accounting issues and thus allows them the discretion to enact their agendas that are not protected against in the legislation. Section 43 of the CS Assessment Act specifies the components of the adjusted taxable incomes as:
Child Support Assessment Act 1989 said43 Working out parents adjusted taxable income
(1) Subject to subsection (2), a parents adjusted taxable income for a child for a day in a child support period is the total of the following components:
(a) the parents taxable income for the last relevant year of income in relation to the child support period;
(b) the parents reportable fringe benefits total for that year of income;
© the parents target foreign income for that year of income;
(d) the parents net rental property loss for that year of income;
(e) the total of the tax free pensions or benefits received by that parent in that year of income.
Note 1: Other provisions that relate to a persons adjusted taxable income are section 34A and Subdivisions B and C of Division 7.
Note 2: The components of the definition of adjusted taxable income are defined in section 5.
(2) If the Registrar amends an assessment under section 44, then for the purposes of the assessment, the persons adjusted taxable income for a child to whom the assessment relates, for a day in the child support period, is the amount determined by the Registrar.
Section 44 is in regard to the post separation costs (up to 3 years after separation where up to 30% of overtime can be omitted to allow one to recover from the adverse financial situation that separation normally is)