Child Support IncomeIt is important to calculate the correct taxable income for purposes of Child Support. The calculations are based on "Taxable Income". It gets more complicated when it comes to deductions like Fringe Benefits such as car allowances and other deductible items, Gifts, any contributions and deductions, various taxable amounts, other income including shares, dividends, and interest and being self employed is even more complicated again.
IF you are self employed you MUST engage an accredited tax agent for your own benefit. The Child Support system looks at all income sources including business loans, deductions, tax write offs and depreciations. Being self employed as a sole trader with an ABN is even more complicated than operating under an ARBN or ACN structure.
There are a number of calculations required. The following are the ATO calculators to give you a bit of a starting point.
The best source to start with is your PAYE salary slip, usually calculated off your firm's payroll system.
Comprehensive tax calculator
This calculator will help you work out your tax refund or debt for the 2013-14, 2012-13 and 2011-12, income years. It will estimate your tax payable and will also calculate:
You also need to consider
Employment Termination Payment Calculator
If you are an employer, the employment termination payment calculator will help you:
- determine the type of employment termination payment (ETP); and
- calculate the correct withholding amount to complete your employee’s payment summary
- understand your tax situation by providing information regarding employment termination payments, and
- determine if you will have a tax liability at the end of the financial year.
Information you will need
If you are an employee you will need a:
- PAYG payment summary – employment termination payment (NAT 70868)
- Written offer from your employer detailing the following information regarding your ETP:
- taxable component or amount of the payment
- type of ETP, for example, voluntary redundancy, golden handshake, severance pay etc or ETP code
- tax free component
- total tax withheld (if your letter does not have this amount the calculator will calculate the tax withheld)