how much is CS to a 13 year old? Also can you do a reassesment on a payee?
However I'll explain or try to. The cost of the child, which is what changes, does not use a fixed percentage rather it uses bands like tax. Unlike tax though as the income increases the percentage decreases. However unlike tax it is further complicated by age groups. There is a band for 1,2 or 3 under 13's and also for 13+ (6 bands so far), there are another 2 bands for mixed ages (2 or 3). Like tax the lower income bands are always used so for a calculation the percentage progressively reduces.
The incomes that determine the bands are not fixed but are determined by the value of AMTAWE (Annualised Male Total Average Weekly Earnings). AMTAWE is based on MTAWE which is provided by the ABS (Australian Bureau of Statistics). The amount is set/changed by January for assessments that start in that year, assessment for previous years use the AMTAWE derived values for that year. The Self-Support amount is also based on AMTAWE, it is 2/3rds of AMTAWE.
The income bands are
from $0 to 0.5 times AMTAWE,
from 0.5 times AMTAWE + $1 to AMTAWE,
from AMTAWE + $1 to 1.5 times AMTAWE,
from 1.5 times AMTAWE + $1 to 2 times AMTAWE,
from 2 times AMTAWE + $1 to 2.5 times AMTAWE
and finally from 2.5 times AMTAWE + $1 (at which there is no extra CS, it's the income cap).
Using the 1 under 13 child, the percentages for the bands are:
The corresponding 1 13+ child percentages are:
As shown by the figures in brackets the % change varies over the bands and hence why you can't just say a percentage.
The Cost of Children tables are published by the CSA you can find them here Cost of Children Tables (2012). Note that this link is to 2012, you can navigate to 2011 from this page and then from 2011 to 2010 etc. Alternately you can go to the The CSA's Website, move your mouse pointer over Child Support Formula (top left) and when the drop down list appears move your mouse over Child Support Tables and then over the tables for the year that you want.
It should be noted that for CS child the child support incomes for both parents are used, that is they are added together, and the cost of the child is then determined. There is also a percentage reduction according to the level of care e.g. for 0-13% care, there is a 0% reduction, for 14%-34% there is a 24% reduction (it's then gets a little complicated so I'll leave that, but it goes up to up to 50% at 48%). Calculations are potentially complicated in that individual children may have different levels of care.
The child support income is the parent's Adjusted Taxable Income(ATI) less the Self Support Amount (SSA = 2/3rds AMTAWE) less any reduction for relevant dependant children (calculated using cost of children tables for the respective parent's ATI only) then less any multi-case allowance (again calculated using the cost of children table for the respective parent's ATI only). For multi-case a cap is also calculated.
Note that this is just an overview and may not be fully comprehensive and shouldn't be relied upon as a means to calculating CS. Use the CS calculator available from the home page, it can save a great deal of hair being pulled out.
Last edit: by MikeT
Parent A has an income (Adjusted Taxable Income) of $50,000 and has care of the 1 under 13 child for 127 nights or 34% (127 / 365.25 * 100 = 34.77), parent B has an income (Adjusted Taxable Income) of $17000 (on benefits). There are no other factors, such as relevant dependants (other children that the parents are parents to from other relationships).
Initially you work out the child support income of each parent by subtracting 1) the Self-Support Amount (for 2012 this is $21,622), 2) any relevant dependant child amounts (there are none) and 3) any multi-case allowance (there isn't any allowance).
Parent A's Child Support Income (CSI) = $50,000 - $21,622 = $28,378.
Parent B's CSI = $17,000 - $21,622 = -$4622, however if the CSI is below $0 then it is $0. So the CSI for parent B is $0.
The next step is to add these two amount together to create the Combined Child Support Income (CCSI). So the CCSI = $28,378 + $0 = $28,378.
As we are dealing with these figures we will also work out the percentage that each parent contributes this is the called the Parent's Income Percentage (PIP).
Parent A's PIP is 28,378/28,378 * 100 = 100.
Parent B's PIP is 0/28,378 * 100 = 0.
The PIP's are used later.
We can now work out the Cost of the Children (Child in this case) and this is done with the CCSI, which in this case is $28,378. So we look at the table for 1 under 13 child. Under the heading we see that for a CCSI of between $0-$32,433 the Cost if 17c for each $1 of CCSI. So the calculation is 0.17 * CCSI which is 0.17 * $28,378 = $4824.26. This is rounded to $4824.
At this stage the CS would be $4824, however there is another stage that considers the costs associated with caring for the child. The legislation sets a rule(s) that calculates a percentage reduction for the level of care. This says that between 0% and 13% (51 nights) there is no cost and therefore a 0% reduction, that between 14%(52 nights) and 34%(127 nights) there is a 24% reduction, that between 35% (128) and 47% (175 nights) the reduction is 25% + (the care percent - 35) * 2 (i.e. 2% for every 1% above 35%) and lastly that between 48% and 52% the reduction is 52%. (it does go on to 100% but there is no need to go into them). However, there is a rule that says that if a parent has more than 65% care then no CS is payable.
As the level of care is 34%, then the 24% reduction applies this 24% is subtracted from the PIP so 100-24 = 76, this amount is the Parent's Child support Percentage (PCSP). Finally we now get to work out the CS. This is the cost of the child times the percentage so the calculation is 4824 * 76 / 100 = 3666.24 rounded to $3666, the annual rate of CS.
Parent A has an income (Adjusted Taxable Income) of $50,000 and has care of the 1 under 13 child for 127 nights or 34% (127 / 365.25 * 100 = 34.77), parent B has an income (Adjusted Taxable Income) of $50,000. There are no other factors, such as relevant dependants (other children that the parents are parents to from other relationships).
CSI for both parents is ATI SSA = $50,000 - $21,622 = $28,378.
CCSI = $28,378 + $28,378 = $56,756
PIP for both parents= 50%.
Cost of children (COC) for a CCSI of $56,756 = 9162 (second band of 1 under 13 child column) = $5,514 plus 15c for each $1 over $32,433 = $5,514 + (($56,756 - $32,433) * 0.15) = $5,514 + ($24,323 * 0.15) = $5,514 + $3,648 = $9,162. (at this stage the liability of each parent would be $4,581 and would therefore cancel each other out).
The level of care is the same as before and thus the care reduction for parent A would be 24% and the care reduction for parent B would be 76%.
For parent A their PCSP is 50% - 24% = 26%.
For parent B their PCSP is 50% - 76% = -26% (note this is negative).
One parents PCSP will generally be negative (%s are rarely integers and, if I recall correctly, rounded to 2 decimal places).
So the liability will be for the positive percentage i.e. parent A in this case and that the annual liability will be for 26% of the cost of the child = $9,162 * .26 = $2,832.
Scenario 3 mixed ages and different levels of care
This is the same scenario as scenario 2 except that another child is involved. The child is 13+ and in the care of parent A for 183 nights (i.e. 50/50). Thus this will require the use of the cost of children table for 2 mixed age children. The differing levels of care also introduce an additional complexity.
The calculations are the same up until the calculation of the cost of children (i.e. the CCSI is $56.756 and PIP is 50% for both parents).
The COC for 2 children of mixed age = $8,595 plus 25.5c for each $1 over $32,433 = $8,595 + (($56,756 - $32,433) * 0.255) = $8,595 + ($24,323 * 0.255) = $8,595 + $6,202 = $14,797.
Therefore the cost of each child will be $14,797 / 2 = $7,398.50 (i.e. the cost of the children divided by the number of children). The level of care, the care reductions and the cost of that child needs to be worked out separately for each child differing levels of care (this can be also be applied when the level of care is the same for all children but you'd do the same calculation twice or three times).
So for the under 13 child the level of care is, as worked out in the previous scenario, 34% which results in a care reduction of 24% for parent A and 76$ for parent B. The PCSP for parent A is then 26% and for parent B it is -26% (i.e. the same as in the previous scenario).
So the CS for this child would be $7,398.50 * 0.26 = $1,923.61 = $1,924 (rounded to an integer).
For the second child the level of care is 51% which results in a care reduction of 50%, the care reduction for parent B is also 50% for a level of care of 49%. As the PIP is also 50% for both parents the PCSP is 0% (i.e. 50% - 50%) for both parents. So in this case both parents have a $0 liability for this child (note that this is a very unlikely scenario, mainly because the ATIs would likely be different).
Parent A would therefore have an annual liability of $1924 + $0.
For the sake of explanation we will assume that parent B has a liability for the second child of $500 instead of $0.
parent A would have a liability of $1,924 for the first child.
parent B would have a liability of $300 for the second child.
The liabilities are offset thus the liability for parent A would be $1,924 - $300 = $1,6234and the liability for parent B would be $300 - $1,923 = -$1,624
Last edit: by MikeT