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CSA has intercepted tax - they have taken more than is owed

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My partner has recently lodged his tax returns for the past 8 years. He has a CSA debt with his ex.

Because he had not lodged his tax returns for so long, CSA estimated his income, which was well above his actual income - many of those years he was unemployed due to illness.

It turns out that the CSA have taken his entire refund to pay part of the debt, but that debt was based on his estimated income. His actual debt is only $700 - not the many thousand that they have taken.

She is not the kind of person to just hand back the amount she was overpaid. Is there anything he can do to get back what she was overpaid? Would she already have received the money (his tax returns were processed last week)?

Thank you

Once the funds are transferred through ATO the transactions to the payee are automated and it will be only days before the Payee has the funds. If there is no payment due in future you will be hard pressed to get the funds back where the recipient is not amicable to give the overpayment back. Offsets are also generally paid back at a % rate to ensure the Payee always has some funds each cycle. In other words if the overpayment is $1000.00 and the monthly amount usually paid is $800.00 they will not pay $0.00 and take the $200.00 remaining off the following month.

Not filing a tax return each year when you are a child support payer is fraught with longer term problems. With the new legislation and system not filing as a payee is also a problem as BOTH parents incomes are taken into account. It is quite important to file a tax return if you are involved in the CSA system if you want correct assessments. I would certainly be speaking to a CSA officer in the morning about options. Let us know how you get on.

Executive Secretary - Shared Parenting Council of Australia
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CSA will pay amounts back (after calculated) from the trust fund if I recall correctly.  They will then recover at the rate of 5% per month from ongoing.
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