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I just wondered if there is a cap on how much a person can be required to pay to the CSA?

Hello,

Just a general question.  I just wondered if there is a cap on how much a person can be required to pay to the CSA?

Thank you

Yoghurtpot
I do not think so.
Yes there is but it is a Cap on earnings not on what you pay in Child Support…I assume once you get to that Cap then you wouldn't pay any more I don't have time right now to go into it all but if you Search the forums using the Search engine you may seek what you need. I found about 200 responses… There is a Cap on the maximum amount earned and both incomes are also taken into account in the new formula.
Reducing maximum payments

Australian research shows that under the previous formula, parents on higher incomes paid child support in excess of the cost of their children. The new child support formula (from 1 July 2008) brings payments in-line with research into the costs of raising children.

As an interim measure, from July 2006 to June 2008, the amount of income above which no additional child support was payable was reduced from $139,347 to $104,702 - this amount was indexed. During this time, higher income earners still paid substantial amounts of child support. For example, a paying parent with earnings greater than the new cap, whose child support payments started in 2006, and who had little contact with his or her two children (both under 12 years), still paid around $24,600 per annum in child support.

For more information see Fact Sheet Ten : The new child support formula and the costs of children.

Executive Secretary - Shared Parenting Council of Australia
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My understanding is that there is a cap on the cost of the child once the combined earning of both parents exceed a certain threshold.

If there is only one parents income involved ie. the payer earns 100% of the combined income, then once you exceed the threshold there should be no further increase in Child Support Payments made by the payer (except cpi increases)

However, if both parents have an income then Child Support paid is worked out according to the percentage of the total income that the payer earns (and offset by their level of care).

Once the combined income goes over the threshold the cost of the child is capped, however, you may still pay more child support if your percentage of the combined income increases. This could happen either because your income increases, or the other parents income decreases.
Guest said
My understanding is that there is a cap on the cost of the child once the combined earning of both parents exceed a certain threshold.

If there is only one parents income involved ie. the payer earns 100% of the combined income, then once you exceed thethreshold there should be no further increase in Child Support Paymentsmade by the payer (except cpi increases)

However, if both parents have an income then Child Support paid is worked out according to the percentage of the total income that the payerearns (andoffset bytheir level of care).

Once the combined income goes over the thresholdthe cost of the child is capped,however, you may still pay more child support if your percentage of the combined income increases. This could happen either because your income increases, or the other parents income decreases.

Guest that is pretty much correct. The threshold that is applied is 2.5 times AMTAWE (Annualised Male Total Average Weekly Earnings). There are also additional circumstances e.g. in the case of a change of assessment, where the CS liability can increase. An example could be where private education fees apply (I've not come accross this happening but I strongly suspect that it could).

MikeT, It has happened well and truly to yours truly, and it stirred up a battleroyale.  There is an uneasy truce at present but any repeat antics will result in a lively response.  

In my view the cap should be aligned with the maximum rate of Youth Allowance paid for a young person living at home.   
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