Donate Child Support Calculator
Skip navigation

Advice needed on what to do next...

Add Topic

Ex reducing earnings

Not sure where to start so I will start at the beginning I guess :-)

Ex and I have been separated for 10 yrs he has since remarried and had 2 children.r
He was serving in the Army until last year in which he retired after 20 odd years and bought him self a franchise.
Previous to leaving the army he was earning approx 100K and paying approx $900 in child support.
At the end of last year I received a new assessment starting that due to him doing his tax return child support would be increasing approx 3 times as of Jan 2012 due to his taxable income being over $200K.
Immediately my centrelink payment reduced. ( Fair enough if i was ever to receive any of the new payment amounts).
Child support stopped and csa began to contact him.
He finally paid his $900 x 2 months but the same day I received a new assessment saying that his earning will be $26K and that child support will be reducing to $90 p/m until June. I rang csa and they advised that its correct and they have to go by the figure he estimates.
 
My question is - if he can reduce payments so fast why is it his taxable income from last year will never be taken into account?

Isn't CSA meant to be keeping all children fair - how is it fair that his other children will benefit from last years earnings and not the 2 that i have with me? How is it on one hand he can reduce it but on the other he didnt EVER need to increase it? Hope this made some sense and someone can give me some clarification as to what to do next etc?

Moderator Note to poster

Please note that your post has been edited to make your post easier to read for others. In future, when posting, please show respect for others by using paragraphs and spell-checking.

Last edit: by MikeT

Jen** said
My question is - if he can reduce payments so fast why is it his taxable income from last year will never be taken into account?
Basically the legislation is flawed in that it caters for the efficiency of administration by using easily obtainable information (tax returns) rather than current data. To ensure that the object of the act, that parent's meet their financial responsibility, rather than some "pie in the sky" financial responsibility, then income estimates are required to take into consideration changed financial circumstances.

Jen** said
Isn't CSA meant to be keeping all children fair - how is it fair that his other children will benefit from last years earnings and not the 2 that i have with me? How is it on one hand he can reduce it but on the other he didnt EVER need to increase it?
The new assessment will result in a reduction of the relevant dependant children amount (the amount that is taken into consideration for such children) for the other two children as this amount is determined according to the new adjusted taxable income. Again the real issue is that for administrative efficiency non-current (outdated) data is primarily used for the determination of CS. It would be unfair to all the children, and also the liable parent, if an assessment were based upon a wage that is far greater than that currently being earned. If the recipient parent of the CS children is in receipt of FTB or becomes eligible for FTB then this will compensate for the changed circumstances and the needs of the children.
i think i read on another topic that income estimates override tax returns. did anyone else read this?
1 guest and 0 members have just viewed this.

Recent Tweets