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CSA Provisional Income

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CSA Provisional Income

Hi. Can anyone provide me with information on how the provisional income is applied to recalculating the CSA assessment once the tax return is lodged. For example if one parent lodges their tax return in say July creating a new assessment and then a provisional income is applied to the other parent. The second parent lodges through a tax agent perfectly legally as late as May the following year. How is this reconciled. It seems incorrect to create an arrears or overpayment when both parents have lodged correctly as per the ATO requirements.

I got trapped by the same issue. The provisional assessment is issued when either party lodges their tax return. Now when you do lodge your tax return they shall go adjust the assessment back to the date the provisional assessment was issue. So if your ex lodged her return in August then it does not matter when you lodge yours after this date since they will backdate it to August.
I too got done over on this as part of my property settlement I sold a house in my name so my income really jumped and since I lodged my return in May (legal by the tax man) I got hit with a $5000 back payment.
I tried to fight it but ended up losing. Reason is I should have lodged it sooner and I could then provide an Estimated incoming to reduce the amount I would pay.
I've found It's best to get your return in ASAP after June 30 and then once the child support assessment is made, go onto an estimate for the next twelve months. Only issue here is that the payee might not like your estimate and challenge it but then they have to go to effort. If your income spiked due to a capital gain related to a property settlement, then I think it would be reasonable to argue to not have the gain included in the child support assessment, but this would have to be tested. If the payee is receiving Centrelink they have to lodge their return by end of October otherwise will face severe penalties.
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