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Can this be right? Increase under new scheme.

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Hi all.

I just wanted to run a scenario by forum members which applies to a friend of mine.  Basically, the details are:

1 child >13yrs old

Payer: $55k, 20 nights care per year, 1 other dependent child (50% shared care and no CSA case)

Payee: $120k, no other dependent children.

The payer's liability has gone from $70 per fortnight to around $200 under the new sceme.

I am by means no expert, so I am only trying cast a 'logical' eye over my friend's scenario, but I can't see how this increase is fair or accurately represents the child's situation.  It should be noted that the incomes and level of care are the same as they were under the old scheme.

Does my friend have any options?

Thanks.
nm07.

Using the figures you gave, I come out with $197.28 per fortnight. Even though the payee's income is quite high which reduces the payers income percentage, this also has the effect of increasing the cost of the child.

Another factor is the limited care level, at 20 nights no consideration for the cost of that level of care is given. The payee does get a reduction, of $3,030 p.a. for the other child (assuming that the child is biological or adopted). However removing the other child and that $3,030 results in a relatively small increase to $211.58 per fortnight ($14 per fortnight).

Should the other child be a teen, then  payments would be $191.23 per fortnight.

One option could be to make an agreement, if that's at all possible. Another would be to try to establish a greater amount of care another 32 nights and payments change drastically as the 24% reduction changes the percentage of the cost of the children ($20,679) from 24.89% to 0.89% and as such the fortnightly payment would be $7.05. Less than the minimum rate, but as the care level is regular care, then this is not introduced.

That one day could make close to $5,000 difference e.g. at 51 nights care annual CS would be $5147 and at 52 nights it would be $184. I do not believe the new system is working as proposed, as one of the things that I read, was that one intention was to smooth hikes, yet it appears to have introduced what are perhaps worse spikes.
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