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60% wage increase = 300% C$A increase

C$A announced my new child support arrangement for the coming financial year. My annual income had risen by 60%..very nice u might think. I thought so too until i see my child support has risen by 300%! (3 HUNDRED!)

I asked a CSA officer how this is possible?

They said it has just the way it is worked out now.Imagine the national outrage..if within a year your tax rate went up 300%….or yr mortgage rate went up 300%…utilities went up 300%..or the bludging breeders in centrelink etc had their rate cut by an equal ratio….it's incomprehensible, but perfectly sane and good according to this agency. When will we stop being taxed twice for making good investment choices, working overtime? How about a system based on your base wage/salary income? That would be fair. Your investment choices are YOUR choice as is your overtime. It shouldn't be greedily grabbed by these vultures and gluttons.

I have always done the right thing , but often it is the wrong thing to do for you PERSONALLY. I have not been able to see my children for years and have had to accept this as how life goes. My partner now is from SE Asia and has asked me to come live with her there as we intend to engage in business in that area. After this latest kick in the balls by CSA I feel this is a good move…not to run away from CSA , but to PROTECT myself from them. My stock, bank acc etc will all be transferred into joint holdings, out of my name but still in my control. My PERSONAL income will be $0. After that I will be the one to send my ex the fair amount of "support". Anything outstanding to CSA XXXXXX will be paid.

This is Australia..the lucky country..not so much any more when people are taxed and then taxed again with what is sometimes called a "prick tax", where people are forced to work a set number of hours for a govt agency for zero compensation. Ridiculous…soul destroying..and sure to make one heart sore. I am an Australian for 6 generations…but i will not live in this country where the govt condones this outrage. This is MY life and MY future. As Mr Hinch was fond of saying…shame, Australia (small 'a' because you no longer deserve respect) , shame.:'(

Moderator said
I have made some minor edits to take out the derogatory references and name calling toward the CSA as that did not help the poster make his case. Australia also has a capital letter which I have corrected.
There are some situations where such a large rise can occur. This is basically when the original income is relatively low and thus originally largely offset by the Self Support Amount (SSA).

An example that results in a large increase in CS is as follows.

The recipient is assumed to be on Government benefits and therefore basically has a $0 taxable income (this is quite a common situation). The liable parent was earning $21,000 (offset by a $20,594 SSA thus resultant amount fed (Combined Child Support Income(CCSI)) into the cost of children tables is $406). The assumption is that this is for a single child under 13. The result is an annual rate of CS of $69 (although this would be increased to $370 if there is under regular care (less than 14%)).

With a 60% increase the $21,000 then becomes $33,600. This then results in a CCSI of $13,006 and the annual rate of CS increases to $2211 a 1600% increase (note these calculations are for the same year whilst it is likely that the CS would be for different years in which case the main factor, the SSA, would increase for later years and thus reduce the increase e.g. an ATI of $21,000 for 2010 results in a CCSI of $1382 rather than $406).

You can check your CS using the calculators available from the home page (this is assuming that you aren't subject to change of assessment).

If the rise is due to this affect (i.e. you are assessed under the formula) then it's not the CSA at fault rather the legislation itself. Although a public servant should not have acted in such a callous and disrespectful way and should have explained why there is such a large percentage increase. However, it is understood that there is an unacceptably high misunderstanding of the CS legislation within the CSA and that such answers are often the result in the CSA not ensuring that staff have a competent grasp of the legislation and thus the formula and how it works. I would suggest that you complain about the disrespect that you have been shown and the likely incompetence that underlies such a comment from those who should be the matter experts.


Moving to Asia may not be the answer. Many countries have reciprocal agreements (Reciprocal Jurisdictions) with regard to CS. Check here to see if the country is a reciprocal jurisdiction The CSA Guide - 1.5.1: Australia's international maintenance arrangements

Moving to a reciprocal jurisdiction and then reporting a $0 income would likely initially result in the CSA applying a fixed rate of $1193 per child for up to 3 children. You could actually be better off by reporting an income that is as high or higher than the maximum PPS (Parenting Payment Single, which is currently $14615) you would then, unless subject to change of assessment, only be liable for the minimum rate of CS (currently $370 p.a.). COA in a reciprocal jurisdiction is very likely legally unenforceable or contestable. However, it's not at all rare for the CSA to ignore the legislation, likely in the hope (knowledge) that it would likely not be contested successfully (especially now as it appears that SSAT are ignoring the legislation and themselves following in the CSA's footsteps of blatantly applying bias to favour unjust and inequitable decisions that discount the very object of the legislation that states that parent's should provide the proper financial support.

Basically, if moving to a reciprocal jurisdiction, do plenty of research.
glen07 said
C$A announced my new child support arrangement for the coming financial year. My annual income had risen by 60%..very nice u might think. I thought so too until i see my child support has risen by 300%! (3 HUNDRED!)

I asked a CSA officer how this is possible?
Firstly there are two very good calculators on this site and clearly you used neither of them. Secondly instead of talking in percentage talk about what sort of money you are paying to support your child. If it has gone from zero to something else of course it will be a large percentage.
glen07 said
How about a system based on your base wage/salary income? That would be fair.
Give me a break. That is exactly what it is based and in fact it is based on BOTH parents income… So read the CSA section of this site and go and use the advanced calculator and check the box that gives you the commentary as to how the amounts are determined.
glen07 said
Your investment choices are YOUR choice as is your overtime. It shouldn't be greedily grabbed by these vultures and gluttons.
The formula is very clear. Certain overtime funds can be protected in some cases. it is YOUR choice also to pay for the upkeep of YOUR child.
glen07 said
I have always done the right thing , but often it is the wrong thing to do for you PERSONALLY. I have not been able to see my children for years and have had to accept this as how life goes.
Child Support is not related to contact arrangements , although we would like to see more linkages. If you have not been able to see your children for "years" then being overseas won't help in SE Asia won't help. The only people that will hep you are the Federal Magistrates if the mother refuses to give you appropriate and proper contacts. Have you taken the steps to resolve that issue?
glen07 said
After this latest kick in the balls by CSA I feel this is a good move…not to run away from CSA , but to PROTECT myself from them. My stock, bank acc etc will all be transferred into joint holdings, out of my name but still in my control. My PERSONAL income will be $0. After that I will be the one to send my ex the fair amount of "support".
That is exactly why the CSA investigate and give greater scrutiny to the self employed. If you paid the correct amount of child support based on what is legislated and in formula everyone would be happy. BUT instead you choose to avoid payment, not by legitimate and proper means and correct accounting, but by clandestine transfers and under the table company manipulations. Do you really think the CSA are that stupid?
glen07 said
This is Australia..the lucky country..
That is the only part of your complaint that I can see has some validity and is actually an accurate reflection.
glen07 said
not so much any more when people are taxed and then taxed again with what is sometimes called a "prick tax", where people are forced to work a set number of hours for a govt agency for zero compensation.
I haven't heard that term before
glen07 said
Ridiculous…soul destroying..and sure to make one heart sore. I am an Australian for 6 generations…but i will not live in this country where the govt condones this outrage. This is MY life and MY future. As Mr Hinch was fond of saying…shame, Australia (small 'a' because you no longer deserve respect) , shame.:'(
If you don't want to pay the correct amount of Child support for your children then that is one thing but to get your knickers in such a knot as to want to leave Australia over it seems to me to be somewhat of a terrible two's tantrum. Step up to the mark and pay what you are supposed to and have a life.


Moderator said
I have made some minor edits to take out the derogatory references and name calling toward the CSA as that did not help the poster make his case. Australia also has a capital letter which I have corrected.


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
 
if it has been worked out accurately the amount of child support and u are getting the time spent with the child isnt it in everyones best interest that u pay your obligation enjoy being a parent and yes try to have a life. If on the other hand they are pursuing you for amounts that dont owe thats a different story. ive just gone thru the objection process unsuccussfully as the CSA have chased me to reconcile an estimate made in 2 tax years ago. my arguement is it should have been amended after the first tax return was lodged that corresponded with the assessment period but the CSA see things different.
AdelaideD said
…. I've just gone through the objection process unsuccessfully as the CSA have chased me to reconcile an estimate made in 2 tax years ago. my argument is it should have been amended after the first tax return was lodged that corresponded with the assessment period but the CSA see things different.
I am interested in this because it seems to me that the business of going back some years is problematic. The CSA should be able to look at each tax year as the return is lodged. If there are multiple arrears of returns lodged then of course that is one thing, but if returns are lodged then there should be a reasonable amount of time before any challenge is expired.



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
 
I was under the impression they were aligning C$A processes with Family Tax Benefits a lot more than has been done which might mean they will assess child support the same way. It would make a lot of sense to contain child support assessments and reconcilliation processes to the financial year.
 apparently they can go back 10 years. i argued over the phone numerous times and asked them to calculate the amount accurately as during 2008-09 i did not earn the estimated amount therefore i have actually overpaid, CSA did not want to try and work that out instead coming back with incorrect assessments. They also have a tactic of not sending u this information until a week before the closing date that you can file an objection. this is how i was unable to file mine they said it was outside the 28 day window???
But yes i have filled out 2 going onto 3 tax returns since that assessed period…
If others have any more examples of time scales and issues with the approach please publish and we can raise this as an emerging issue at CSNSEG.

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
 
For any assessment issues that go back further than 18 months you do have access to the court under s110 of the Child Support (Assessment) Act.
Fairgo said
For any assessment issues that go back further than 18 months you do have access to the court under s110 of the Child Support (Assessment) Act.
  And yet CSA are able to go back 10 years to "reconcile" assessments - that should be looked into…
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