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Estimating your income
What is an estimate?
If the income information we have for you is wrong or has changed, you can provide an estimate of your adjusted taxable income for the current financial year.
A broad range of income amounts are taken into account to work out your child support payments, for both parents. We add up these amounts to get your adjusted taxable income, which is based on your last completed financial year of income.
For example, if your child support period begins on 1 October 2008, your adjusted taxable income will be based on your 2007-08 taxable income.
Click here for more information about your income.
Who can lodge an estimate?
Either parent can lodge an estimate of their adjusted taxable income.
You can only lodge an estimate after your income changes. An estimate cannot be lodged for an expected change to your income.
If your adjusted taxable income changes regularly, you may be able to lodge a new estimate every two months, or update your current estimate to reflect your actual income. It's very important that you tell us straightaway if your income changes, otherwise your child support assessment will be incorrect.
You can ask us to base your child support assessment on an estimated adjusted taxable income if:
- you lodged your tax return or advised us of your adjusted taxable income for the year used to calculate child support payments, and
- your current adjusted taxable income has reduced by 15 per cent or more than the income used in the assessment, or
- you already lodged an estimate for this child support period more than two months ago and the new estimate is for a different amount.
Who can't lodge an estimate?
You may not be able to lodge an estimate for any part of your assessment that is based on:
- an agreement
- if you have a limited agreement, you may be able to lodge an estimate of income if it reduces by 15 per cent or more or
- your limited agreement can be ended and replaced with a new agreement or a formula assessment.
- a determination made under the change of assessment process
- you'll need to reapply to us to change the assessment
- a court order
- you'll need to reapply to the court
To find out more about your options, call us on 131 272.
How to estimate your income
If there is more than 12 months remaining in your child support period
- Work out what you think you will earn over the next 12 months; remember to include:
- taxable income
- foreign employment income
- rental property losses
- gross reportable fringe benefits total
- Add these income amounts together to arrive at an estimate of your adjusted taxable income. This is the figure we will use to work out your child support payments for the remainder of the child support period.
If there is less than 12 months remaining in your child support period
- Add up the number of days left in your child support period, starting from the day you intend to lodge your estimate with us.
- Work out what you think you will earn over that period; remember to include:
- taxable income
- foreign employment income
- rental property losses
- gross reportable fringe benefits total
- Add these income amounts together to give you a total income amount for that period.
- Divide the total income amount from Step 3 by the number of days remaining in your child support period.
- Multiply the figure from Step 4 by 365 days. This is the figure we will use to work out your child support payments for the remainder of the child support period.
If you lodge an estimate during a current child support period, it will take affect from the day you tell us.
How to lodge an estimate
When your income changes, call us on 131 272 as soon as you can. We can tell you about your options, including whether you can lodge an estimate of your income.
We may ask you to provide written documentation to support your estimate of income. We may also review your case to ensure your income estimate is accurate.
If you have more than one child support assessment, you'll need to tell us if you want your estimate to apply to all of your assessments.
When does an estimate end?
Your estimate will end when:
- a new estimate is lodged
- your child support period or CSA notional assessment period ends
- a court order or change of assessment determination is applied to your case or
- you lodge your next tax return with the Australian Taxation Office, which will trigger a new child support period.
If we don't accept your estimate
Sometimes if we believe your estimate doesn't accurately reflect your available property, income and financial resources, we may reject your estimate. We will contact you to explain the reasons why and work with you to find a solution.
Some common reasons why estimates are rejected include:
- Your adjusted taxable income hasn't reduced by 15 per cent or more. If your income has reduced by less than 15 per cent, call us to discuss your options.
- We don't have information from your last relevant year of income. We can't accept an estimate if we don't have all of the relevant information to assess the estimate against.
- If there is a court-assessed income order in place. Such an order can only be overturned or changed by another court order. If you have a court-assessed income order in place, you should seek legal advice.
If we don't accept your estimate, call us first on 131 172 to discuss the reasons why and find out about your options.
You may be able to object to an estimate that has been rejected or accepted, if you think we didn't have all the necessary information to assess the estimate.
More information
For information about the relevant legislation and policy, go to The Guide or call us on 131 272.
