Donate Child Support Calculator
Skip navigation

Property not settled and property sold with Capital Gain what's CSA view

Add Topic

My income will be artificially high because of sale of property and capital gain

Hi everyone

I was forced to sell an investment property after losing my job in November. There was rent there and a capital gain. This will form part of the total property pool and my wife will gain from it. My income will look artificially high for 2008-9 and the property split is not agreed. She will own part of this gain - the bigger part. How should I deal with this with CSA as I was unemployed over Nov-early Feb but I'm now working for myself at a far lower income since then. It would be unfair for me to wear the income on something she's going to get as part of the settlement. Anyone been through anything similar?

I can't see the CSA having any concern about such a predicament as it will mean that they can collect more, perhaps the special circumstances team (Sorry Secretary_SPCA, I've probably got the name wrong) could do something. Perhaps Secretary_SPCA could look into the possibility of getting them involved in this. Perhaps this issue needs to be considered as something that should be catered for by the legislation in a similar way to post-separation earnings.

I'm also wondering if the SRL's could comment on whether an artificially increased CS liability due to such special circumstances could be successfully put to the court to affect the property split.
If your actual current income is less than what CSA assesses you on (in future it will normally be based on your last ATO assessed taxable income) then you can lodge an "estimate" - tell them (and prove it if necessary) what your current income is, and they'll assess you on that. Don't under-estimate it because they'll do a reconciliation once you lodge. Seriously, if your last ATO income assessment doesn't reflect your current circs, then call them and say so, tell them you want to be assessed on an estimate of this year's income.

You could have the issue included as part of your settlement orders and consequently a CSA agreement with the ex so CSA do not use the capital gain for determining your child support income.

If settlement has already occurred and the ex is not willing to sign a CSA agreement about this then you could lodge a change of assessment form with CSA asking them to make the change.

If you do not do any of the above your capital gain will be used by CSA to determine your child support income unless you can offset it with a capital loss come tax time.
I had a similar problem  When my Assessment came out last year with the CG on it I contacted the CSA and told them it was a one time event and I explained that I had to pay 1/2 the CG for tax purposes but would only be receiving 30%.   They allowed me to put in an Estimate.  I did make a slight mistake in my estimate, I have a who 498 dollars more in my income than I estimated I guess I own them 100 dollars…   
I would never ever suggest that you take a risk and just not declare the sale proceeds.  Chances of being detected can't be that high.  What they don't know won't matter.  Will it?  Seriously, its scenarios like this that have people thinking of ways of subverting the scheme.
1 guest and 0 members have just viewed this.

Recent Tweets