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Income estimate

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Unfortunatly I couldn't edit the past topic, not sure why anyway… I wonder what your thoughts are.

The guide says this:


Income estimate for part of a year of income
If a parent has not made an estimate for the year of income and wishes to estimate their income during the financial year, after the first day of the financial year, they can make an income estimate for part of the year. If the parent has already made an income estimate election for the year of income and wishes to make another estimate due to a change in their circumstances they must make alater income estimate. The information in this section relates to the first estimate for a year of income which is for part of the year of income.

The parent must inform CSA of their estimated income for eachincome component amountfor the remaining period (section 60(3)(a)). The remaining period is from the start date of the income estimate election to the end of the year of income (section 60(4)). The total of the parents income component amounts for the remaining period is their partial year income amount (section 60(4)). They must also inform CSA of their year to date income, that is, the total of the income component amounts they have received from the beginning of the year of income to the day before the start day of the income estimate election (section 60(3)(b)).

In order to calculate the amount to be used in the assessment, the partial year income amount must be divided by the number of days in the remaining period, to identify a daily income amount. That daily income amount is then multiplied by 365 to identify the annualised income which is the amount the parent is required to provide as their income estimate election (sections 60(3)(a) and 60(4)).

Example
F has estimated their partial year income amount for the period 1 November 2010 to 30 June 2011 to be $26,500.
There are 242 days in the remaining period. The daily rate is $26,500/242 =$109.50413.
The daily amount is multiplied by 365 to identify the annualised amount  $109.50413 x 365 = $39,969, which is the amount of the income estimate election.


The payees income was 80k 10/11 and the payee has been employed until October 11.

July = 6.600 (based on the 80k tax return)
August = 6.600
September = 6.600 (quit her job end of September though, didn't inform CSA until the 20th of October about her 0 income)
October = 0?
November = 0
December = 0
January = payee calls and gives CSA estimate of 15k for January - July.

CSA sets the payees income at 15.000 as requested by the payee since it's what the payee will earn for 6 month. CSA though uses hubby's last tax return to calculate CS on (12 month worth) and her wage is set on 6 month worth?

When her tax return is submitted, C$A will reconcile the income. She may get a penalty for underestimating her income.
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