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Two questions regarding income

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Background to my situation

As many of you know from my previous posts I own a retail franchise and am self employed.
Presently I haven't been able to afford to pay myself superannuation out of my business, I have mentioned this already to CSA.

The other partner on the other hand works for the government part time and has the benefit of receiving superannuation, board from her 30 year old son ( not related to me) of $125/ week and benefits from centerlink?


My questions

 Is there anyway that they can deduct 9% from my total income as "superannuation not paid"?
If I were to start paying myself superannuation do they add this amount onto my income?

I have already noted that my ex- partners superannuation benefit isn't included with her income and they have also not added into her income any support that her 30 year old son gives ($6500 year) into her income as they site a reference by Lee 1989 "expenditure survey approach" which says it cost her $255 week to support her son (even though the figures are based on 11-13 year old children) . Does this sound right?

Also CSA hasn't added her centerline benefits to her income? Is centrelink income not assessable ?


 
Graeme70 said
Is there anyway that they can deduct 9% from my total income as "superannuation not paid"?
I don't believe that there is any way.
Graeme70 said
If I were to start paying myself superannuation do they add this amount onto my income?
I'm not at all sure. My understanding is there is obligation to pay super and it would surprise me little if the CSA considered in a change of assessment that it would then be classed as trying to alienate income. However, if there is an entitlement to make standard super contributions then the CSA should not do this.

For both questions I don't believe that the CS legislation covers this anywhere. However, I believe that the APS guidelines do require a public servant to adhere to all Australian legislation and if there is legislation that says that a small business owner should/can make super contributions then a public servant should abide by this legislation.

Perhaps Secretary_SPCA could try to get an official answer to this, preferably asked so that the CSA cannot discern whether it relates to a liable parent or a recipient or perhaps asked as if it were for the latter so as to thwart the likely bias if it were asked about a liable parent. Perhaps this needs to be raised as an emerging issue at CSNSEG (Child Support National Stakeholders Engagement Group). However, these aren't that frequent and the answer could take months or be answered with nothing better than cods-wallop as I believe is sometimes the case regarding emerging issue answers. I believe the SPCA has been trying for many years to get a guide for the self-employed/small business owner. I think the following is the total work done by the CSA on his over those years:

CSA's guide for the self-employed or small business owner.


Re the last question:
The CSa Guide - 2.4.4: Child support income  (extract) said
Tax free pensions or benefits

Only the following tax free pensions or benefits received by a parent are included in the adjusted taxable income:

    a disability support pension under Part 2.3 of the Social Security Act 1991;
    a wife pension under Part 2.4 of the Social Security Act 1991;
    a carer payment under Part 2.5 of the Social Security Act 1991;
    an invalidity service pension under Division 4 of Part III of the Veterans' Entitlements Act 1986;
    a partner service pension under Division 5 of Part III of the Veterans' Entitlements Act 1986;
    income support supplement under Part IIIA of the Veterans' Entitlements Act 1986;
    Defence Force Income Support Allowance under Part VIIAB of the Veterans' Entitlements Act 1986;

but only the amount that is:

    exempt from income tax; and
    not a bereavement payment, pharmaceutical allowance, rent assistance, language, literacy and numeracy supplement, remote area allowance or tax-exempt pension supplement (section 5).

Graeme70,

Your situation is one that many self-employed payers face. I believe there was some report last year (or earlier) from C$A that said they were going to "target" self-employed payers in their collection campaign.


This is blatant discrimination against people trying to operate a small business in Australia who DO pay their C$A. I dont recall them saying they were going to target payees in the same fashion. Actually I dont recall them ever saying they would "target" payees in any capacity….like those earning money in cash industries and not declaring it against govt pensions.

It appears you may benefit by having someone else own your business and putting you on the payroll as an employee.
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