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retained earnings equity

How does the CSA and SSAT view retained earnings equity in self employed?

misstated information

What happens if a person tells CSA their financial information,when it comes to SSAT hearing their finacial information is totally different from what was first stated?
How does the CSA and SSAT view retained earnings equity in self employed?

That's a very good question and it would be fantastic if there was actually an answer that could be used. Currently the answer appears to be two-fold with the CSA.

a) If it's a receiving parent, then it is highly likely that whatever the parents says is taken at face value.

b) If it's a paying parent then such a value is taken to be not a true indication, rather some magical formula that turns liabilities into assets along with much other jiggery-pokery (or whatever manipulative spell-binding term you are familiar with) that inflates the self-employed's income to some sky high figure. As an example, a relatively recent CSA COA determination(sic)  came up with a figure of $92,000 (objection reduced this to $60,000, SSAT in Ryan v Ryan reduced this to $58,500).

With SSAT the complexity of the answer is even greater. In the above example SSAT have to some extent applied fairness where it was clear that the CSA were acting contrary to the legislation, in which they are meant to be proficient at following. It is quite clear that the CSA act in this way to not support children, to not follow the object of the legislation, but in order to report the maximum amount collected or transferred and which is then interpreted by diving it by 2 to equate to the amount of FTB saved which is then the figure given to the appropriate ministers.

However SSAT I believe act fairly on occasions on other occasions their competence with the legislation is clearly shown to be lacking and I suspect very much influenced by what appears the anecdote, that you very often hear from those involved with CS, that the self-employed CS payer is always fiddling the system. This inability to competently apply the legislation is evidenced by the words of the decision maker in Ladd v SSAT

Another decision that could be of use in understanding how both the CSA and SSAT work together in order to exploit children for what is effectively extra brownie points is shown in Voss v CSA

So unfortunately there isn't actually any answer other than they do what they do. Secretary_SPCA, myself and others are consistently pushing for the answers that you asked. Currently we are awaiting the progression of the Change of Assessment Review into the area of the actual working. Currently it is only involved in the frilling around the edge.

Guest, I think that very much answers your question, by indicating there is no firm answer, as well.

retained earnings

Thank you for your reply ?

Obviously it depends on each case.

So another question for you, what about sole traders and trust accounts in their name, is that then viewed the same ? Also money gifted by family members ? Say I'm self employed and my business turnover is around $84,000 a year, my business expenses are $70 K a year. I have around $230 K in retained earnings equity, this amount includes $140 K in company trust account. A family member gifts me $45 K over a 2 year period. Is this alienation of income ?
Editor notes that a search on "Self Employed" and "Self Employed Income" and "Income Deductions" results in a vast number of good post responses. Has Guest used the site search facility?

Last edit: by OneRingRules

If you have control over the resources then the income generated will be counted as personal income as well as the distributions, and the resources can also be deemed a lump sum that can be accessed to support the children if they have any additional need of financial support.
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