Donate Child Support Calculator
Skip navigation

Tax returns and CS

Add Topic

I read with some degree of horror recently that CS is reconciled once tax returns are submitted.

My last FY income was about 99K, and I pay CS of about $350 per week based on that amount, however mid way through that FY I started a new job and my income almost doubled. This FY it will increase to about 130k and CS will obviously increase to reflect the higher income. Do CSA reconcile previous financial years to take extra if/when they see fit?

The guide didn't really guide me in finding any practical answers. Am I facing a hefty bill come tax time?
As far as I am aware, CSA goes by your last recent tax return only. How are you supposed to know about bonuses or payrises for example. So your 10/11 tax return would be valid and the estimate will be based on that until your next tax return. You lodge your 11/12 return and then CSA will use that for 12/13 and so on…

Unless, you gave CSA a different estimate. For example: hubby's ex called CSA to reduce her wage from 80k to 15k. So 10/11 was 80k, she called a few month later and told CSA that her income reduced to 15k for 11/12, so CSA used this (increasing payments by 500 pm for us), she will do her tax 11/12 let's hope and her return will be above 40k, as we know that she estimated her income incorrectly on purpose. CSA can then reconcile and she will owe us the difference.

CSA may be able to reconcile if you don't lodge tax returns. Let's say you lodged 09/10 and it was 100k, they will guestimate 10/11 as 105k and 11/12 as 110k or something, since you didn't lodge a return. You then lodge a return end of 2012 and your wage worked out to be 130k for 10/11 and 150k for 11/12, CSA can reconcile and you will be in arrears. Otherwise the last recent tax return is used.

I think… Please correct me…
My Understanding is:

They can only reconcile if you have given them an estimate for that year

If your pay goes up, then the CS goes up from when you submit your return
Seriously… Yes that's what I think as well ;-) could of said this in a little less words lol
1 guest and 0 members have just viewed this.

Recent Tweets