If a paying parent reports a low taxable income and is not receiving income support, they may be required to pay $21.50* (indexed annually) per child per week. Where there are more than three children, the amount will be capped at $64.50* a week.
This is called a fixed assessment. Fixed assessments cover parents who minimise their taxable income in a way that does not fairly represent their true income or real capacity to pay child support.
This amount, currently $21.50* per child, will still be payable if the parent has less than shared care of the child (less than 35 per cent). If a parent has a higher level of care, this amount will not be payable because the parent will be directly contributing to the child’s support through care.
If you receive an income support payment, you won’t have a fixed assessment but will have a minimum assessment. If you don’t claim income support—for example, because your new partner supports you—and have genuinely low income, you can apply for the fixed payment not to apply. You’ll need to demonstrate that your income is genuinely low.
If you have genuinely low income, call us on 131 272 to talk about your options.
*These amounts are for child support periods that begin in 2008.