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How much Child Support will I pay? .....

Discussions around the new formula

Hi….. I am so confused can anyone tell me the maximum i will have to pay in 16 yo child support after july 2008 is there a capped amount ? My ex wife is on a disability pension i earn around $150,000.00 I don't see the child. I now have another child under 3 years. What will I pay this time as I said is it still the current capped amount? Someone please help !  :'(

Last edit: by OneRingRules

A friend in need

Hi
I received an email from a friend:

"I got stung with an increase of approx $300 per month taking the payment to $2,100 per month. but wait for it, with the new changes starting 1/7/2008, the maximum income cap is removed and my payment will go to $4,100 per month. This financially ruins me. I net presently $9k per month (excluding performance bonus paid once a year), after CSA and paying my current rent I have $500 per week to live on. I thought I could re establish if I had some income but now I am down the craphole. I would also not be able to pay my legal fees off which are compounding at the moment."

I feel for this friend and am wondering if anyone can address his plight.

May peace be with you

What is done for you, let it be done, what you must do, be sure you do it, as the wise person does today that what the fool will do in three days - Buddha
Yes i feel the changes will hurt the parties with out  the children ,and all less time with them,  and in turn make it imposable for the second parties to look after there kids, when they have them.

I hear 35% is them min for any reductions in maintenance payments , July 2008.

Might I say it is close to 90% of man that pay maintenance, lose there kids and home in family break up.
 
There are some fig showing that 4 men in Australia A day take there lives because of a break up, and hard ship because of maintenance, and the wrongs being done on to man in the system of thing.

The fact is most brake dawn with relation ships are full term.

My stepfather who had 4 kids.

He remarried my mother a relation ship with  mother with 3 kids , came home form work 1 day on pay day and and said hear is $90  maintenance had taken money fron his pay, i can still remember that week as a kid i was 1 of the hardest weeks I have ever had because of food, and other item needed to live.

If the changes come in i can see the hard ship felt all over Australia , and that fig of 4 men a day in australia going up in a shore time , that figs where taken from statistics , i leard about that fig  at MATES   a mans group on the central coast NSW
 
I am paying the lowest maintenance because i am of ill heath of $27 a month but for a man like me if i was working i would make about $400,

maintenance say                      $80
rent                                     $200
bills,petral to get to work          $80

food                                      $40

                                          $400 / week

So $40 to feed kids when u have them   Because you will need to have the children 35%to get any help from Centrelink after 2008july, the family tax benefit, I was told it is going to set at %35 care before Centrelink will pay any of it.

Most people out there will not be able to cope with the changes to maintenance and Centrelink changes , Oh and I forgot, and the new family you might find. They can have the change say 59 cents  it's hard for people out there now, and more changes will hurt most people out there even the no direct people.

I would all so like to add that i did work when the relation ship broke down , i hand the children 35% of the time when i was working but when allegation where made by me ex. I lost my job because of heath reasons and because of false allegations being made buy my ex , and the maintenance has been higher because of the allegations. I had the children 35% of the time now I have them 21% 10 month later I am trying to get visitation back to where it was before the false allegations where made, the wrong thing is that when the allegations where made I lost contact with the kids for 6 months , even when i got them back the maintenance was at full level because I did not have them more the 114day a year so it full for all there year , the mother should have to pay for that I feel because the allegation are proven to be false, I lost my heath me job, maintenance changed for the full year and most of all my children

If its man paying the maintenance MOST of the time

losing there homes.

losing there children

their health,

their jobs

their income

Then I feel it wrong to make maintenance changes for the worse for them ,

some man like me cant get back to work , will not be able to rebuild if more money is going to be taken from them , turn the tables i say if maintenance was lower most woman would let the father see there kids quicker and more often , Who make the changes to maintenance anyway the system  . Because if there was a face to it they would be the most hated person in Australia, man don't mind paying for there kids but it needs to be far. Men are not always in the wrong when relationships break down so stop punishing them over and over. BE FAIR I SAY!

WE ARE.
I popped in your details to one of the calculators - result was $18500 pa. probably what is paid now. No offsetts for time spent (<14%) or mothers income. If you saw the kids more than 14% and Mum worked and made more than $17k it would be lower.

The detailed Calculations

Guest said
Hi….. I am so confused can anyone tell me the maximum i will have to pay in 16 yo child support after july 2008 is there a capped amount? My ex wife is on a disability pension i earn around $150,000.00 I don't see the child. I now have another child under 3 years. What will I pay this time as I said is it still the current capped amount? Someone please help !  :'(
It is quite frankly impossible to calculate the correct child support amount you will pay based on the information supplied.

Yes there is a capped amount. It is significantly changed under the new legsilation which has reduced the maximum amount of child support payable by high income earners (Called the Cap) to ensure these payments are better aligned with the actual costs of children. This is a measure that brings child support in line with the costs of children in preparation for the new formula.The Cap is reduced from $139,347 down to $104,702 (for CSA periods in 2006 onward). This piece of the legislation is operational now.

Next lets get back to your question of how much will you pay? The new formula applies from July 2008. It is not easy at first glance to see how it works.

Payments are calculated on Taxable income. (Net plus all deductions added back) Most people have some idea of taxable income paid many don't know what net income is due to the many deductions possible under tax laws. The new calculation is as follows:

The example used is two parents separate, 3 children under 12 Father has the children every other weekend and half school holidays which falls into the 24% Percentage of care ratio (14% to less than 35%)

STEP 1: Work out the child support income
Income = Adjusted Taxable Income (ATI). Taxable Income plus add back components such as rental losses, some non-taxable income. Would also include any Centrelink payments but not FTB (Family Tax Benefit).

Deduct the Self-support amount = one third of Male Total Average Weekly Earnings (MTAWE) = in 2005-06 this is $16 883. The self-support amount is the same for each parent. This is a fixed deduction amount based on the set value MTAWE.

STEP 2: Work out the costs of children
Refer to 'costs of children' table (p31 of the summary report (see the costs of children) this table shows the costs of children at different ages and different levels of parents' combined income. Note that combined income is used to calculate in the costs of children table.

The 'costs of children' table is based on research showing what is spent on children in families at various income levels.  It is fairly easy to see which column to use.

STEP 3: Apportion the costs between parents

Capacity to pay - percentage of combined incomes (each parent's child support income divided by the total child support income).

In the example (see the table calculating child support) the Non-resident parent's capacity to pay is 77.38% less 24% credit for shared care = 53.38% of $11 884 (the costs of children) which is $6344. The non-resident parent's capacity to pay is reduced by 24% because it takes into account the 24% of costs met directly by the non-resident parent.

Credit for shared care can be seen on the last table attached in column 1. You can see that there are new breaks and the old 109 nights rule is gone. It is now set at 52 nights.

Resident parent's capacity to meet costs is 22.62% of $11 884 which is $2688 - this amount is spent directly on the children by the resident parent.

Note, the majority of non-resident parents with some care fall under the 14%-34% regular care. This means they are given a 24% credit against their capacity to pay percentage.

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Last edit: by OneRingRules


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
 

New Formula - Support amounts for kids from second families

I have noted and calculated with interest our new proposed payments as per your formula above however, there does not appear to be an amount reducing the payer's child support for children in new relationships.  My hubby has 2 children involved in child support however we have a toddler of our own from our marriage.

Can you please advise the amount that will reduce his CSA payments because of our little boy.

Many thanks (PS when will the info be placed in a calculator??")

Regards

AVID VISITOR

Last edit: by OneRingRules

I will publish a guideline shortly. There is also an issues register running where you can send an issue back to Government via the site. See the front page icon

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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
 

This stinks

Hi All

My partner has a child from a previous relationship that he currently pays child support for. come July 2008 he will be assessed at an income of $72,000 with 2 dependents under 12

Thats all good ex partner is on pps earns $13,500 approx in benefits. So therefore my husband is left with 100% child support liability. However she has 4 children residing with her and receives a whopping almost $20,000 per year in family assistance.

If this had been included her taxable income would of been around $34,000 which I believe stinks.

Children are exposed to this family assistance income in the same way as a taxable income. Why is it not included?? This stinks not only does she get her childrens medicine for free, education for free, received an abstudy payment per child, all the stuff under the sun while we go broke. Yes Im bitter. Its bullshit. Anybody have any reasons as to why family tax benefit income is excluded?

Jodie

Last edit: by OneRingRules

Net income or gross?

HI reading an above post states that income used for child support assessment purposes is net income. However Ive pulled this quote from

Child Support Legislation Amendment said
Chapter 56 Meaning of Taxable Income

(1) For the purpose of assessing a parent in respect of the costs of a child in relation to a child support period, if the parents taxable income has been assessed under an Income Tax Assessment Act for the last relevant year of income in relation to the child support period, the parents taxable income for that year is the amount so assessed.
Taken from web address: www.comlaw.gov.au

This is a whole act on the child support amendment changes. Can somebody please clarify.

Jodie  :)

Last edit: by OneRingRules

CSA base their figures on taxable income. This is your GROSS (not nett, which is the after tax and other deductions, figure).

Your partner's ex would have all of her income form part of the assessment. If you go the the CSA web site, they have a calculator, or you can call CSA with the details and they will tell you over the phone.

There is a booklet on the CSA site where you can state why you should pay less child support.

As for the ammendments, the site also lists links to documents that translate all the changes into plain english for you. Under the new rules, the amount your partner is paying should decrease.

Junior Executive of SRL-Resources

Executive Member of SRL-Resources, the Family Law People on this site (Look for the Avatars). Be mindful what you post in public areas. 
Be aware also that the comments around "benifits on pps earns $13,500 approx in benefit" and "However she has 4 children residing with her and receives a whopping almost $20,000 per year in family assistance." are both non taxable amounts if I recall which will be excluded from income calcs. I will check with FaCSIA about how these will be handled in the new formula.


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
 

Invitation

Guest said
I have noted and calculated with interest our new proposed payments as per your formula above however, there does not appear to be an amount reducing the payer's child support for children in new relationships.  My hubby has 2 children involved in child support however we have a toddler of our own from our marriage.

Can you please advise the amount that will reduce his CSA payments because of our little boy.

Many thanks (PS when will the info be placed in a calculator??")

Regards

AVID VISITOR
If you are an 'Avid Visitor' the courtesy of applying for site membership will take less time than one post.

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

Calculator at Men's Rights Agency (MRA)

Hi all

Sorry if I'm repeating information but I found a calculator at www.mensrights.com.au for the new child support formula. For those who haven't seen it, its not too bad. Link for the calculator is on the left hand side of the home page.

MRA Child Support Calculator

Jodie

I did not believe that centrelink is exempt. The ATO consider centrelink monies taxable. I can't see why CSA would not allow them.

When I've used the CSA calculator, in addition to my wage, it asks for income relating to centrelink benefits…

BTW - great psueonym Jodie  O_o

Junior Executive of SRL-Resources

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

Which Centrelink payments are Taxable

Only the core Income Support components of Centrelink Benefits are Taxable. For example, Parenting Payment, Newstart Allowance, Austudy, Aged Pension, Disability Support Pension.

Other Benefits such as Rent Assistance, Family Tax Benefit (Both part A & B), the Baby Bonus and other supplementary benefits are not taxable and are therefore not considered as part of Taxable income.

The only offset against Child $upport for a payer is that when a Person's income is considered to calculate Family Tax Benefit (FTB), any Child $upport paid to another person is deducted to arrive at the relevent income figure used to calculate FTB.

For me - Shared Parenting is a Reality - Maybe it can be for you too!
Guest said
Hi….. I am so confused can anyone tell me the maximum i will have to pay in 16 yo child support after july 2008 is there a capped amount ? My ex wife is on a disability pension i earn around $150,000.00 I don't see the child. I now have another child under 3 years. What will I pay this time as I said is it still the current capped amount? Someone please help !  :'(
Try the FLWG Child Support Calculator

Humph! I just used the calculator on the 'Mens Rights' website and it said that my husbands child support will almost double.  Considering we have three biological children together and they are older than the one child he pays child support for and the mother earns considerably more than he does…this can't be right, can it?

Calculators

I've used both calculators and come up with exactly the same figure, so for me I have surmised that the mensrights.com.au calculator is correct also.

These are simple calculators though. I guess nobody will know for sure until the CSA develops their own, for more accuracy.

However, I have the same calculation through, like I said, both calculators, and working it out manually through the income chart. This is just for me personally.

Jodie

FLWG calculator

I too have tried both calculators.

The "MensRights" calculator takes into account the bio child I have with my husband as well as his two "child support" children.

The FLWG does not seem to take into account bio children of current families.  Can someone please explain if this is correct or how i go about using the FLWG calculator including my son.

Regards

FRUSTRATED

Last edit: by OneRingRules

Guest said
….The "MensRights" calculator takes into account the bio child i have with my husband as well as his two "child support" children.

The FLWG does not seem to take into account bio children of current families. 
You are absolutely correct. The calculator on the FLWG site is a simple calculator running one father with multiple children cases.

The calculator focuses on the following key components:

Maximum earnings for calculation purposes
Reductions in the base protected incomes deductions for both Payer and Payee the Adjusted Taxable Income (ATI) using new self support amounts (Self-support amount = one third of Male Total Average Weekly Earnings (MTAWE))
New time credits for Payers (Costs met through Care)
New lower cost of children formula prepared by the task force

In the first round of development we did not ask the FLWG development team to deal with multiple families from multiple fathers and new combined families with child support liability  and reductions from Family Tax Benifit part A. We have been advised that a sophisticated calculator is in development by the CSA and is supposed to be released in the first quarter 2008.

We have been considering options to provide a more independant form of calculator to ensure there is some "other reference" but we have no available funding to develop a more comprehensive calculator at the moment.

In relation to Multiple Families and Relevant dependant amount.

The relevant dependant amount for a child is worked out using the same Costs of Children table as is used to calculate the costs of the child support children.  Only the Child Support Income of the relevant parent is used.  The amount is then deducted from the parent's income before the child support is calculated.

Example

Johanna has a child support case for her daughter Helga, and also has two relevant dependant children, Mitchell, aged 14, and Frida, aged 11, in a new family. Mitchell and Frida live with Johanna and her new partner 100% of the time.

When Johanna is assessed for child support, a relevant dependent child amount is deducted from her income to recognise her responsibility for Mitchell and Frida. Johanna's adjusted taxable income is $36,000.

The key steps:

Step 1: Work out the difference between the parent's adjusted taxable income and their self-support amount. Johanna's adjusted taxable income is $36 000 and her self-support amount is $16,883, so the amount worked out under this step is $19,117.

Step 2: Work out the parent's percentage of care for the relevant dependent children. Mitchell and Frida live with Johanna full-time, so her percentage of care is 100%.

Step 3: Work out the parent's cost percentage for the relevant dependent children. Johanna has 100% care of Mitchell and Frida so her cost percentage is 100%.

Step 4: Work out the costs of the children as if calculating the costs using sections 55G and 55H and as if subsection 55G(2) applied, that is, using Johanna's child support income only.  These sections say to calculate the cost by looking up the appropriate item in the Costs of the Children Table to find the costs of all the children. According to the Costs of the Children Table, the total cost of Mitchell and Frida is $5,066, so the cost of each child is $2,533.

Step 5: Work out the parent's relevant dependent child amount by adding up the amount for each child obtained by multiplying that child's cost by the parent's cost percentage for that child. Johanna has a cost percentage of 100% for each child, and the cost for each child is $2 533, giving an amount for each child of $2,533. This makes Johanna's relevant dependent child amount $5,066.

This amount is deducted from Johanna's income when calculating child support.

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
 
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