Parents with other dependent children
The cost of a biological or adopted child living with a parent is calculated in the same way as the cost of a child support child. To recognise the care a parent provides for these children, called relevant dependent children, we deduct an amount from the parent’s adjusted taxable income before applying the basic formula.
To calculate an amount for a relevant dependent child, we follow these steps.
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We calculate the parent’s child support income.
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We work out the parent’s care percentage and cost percentage for the relevant dependent child. (This is usually 100 per cent.)
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We work out the costs of the relevant dependent child. However, only the income of one parent is used—not the combined income of both parents.
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We multiply the cost of the child by the cost percentage. This is the relevant dependent child amount.
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We deduct this amount from the parent’s adjusted taxable income, to get their child support income.
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We then go back to the basic formula and follow the steps to work out the child support payable for the child support children.
Example: Johanna
Johanna pays child support for her daughter Helga, 16 and has two relevant dependent children, Mitchell, aged 14, and Frida, aged 11, in a new family.
Mitchell and Frida live with Johanna and her partner, Greg, 100 per cent of the time. So when Johanna is assessed for child support for Helga, a relevant dependent child amount needs to be deducted from her income.
To get this amount, we first deduct the self-support amount of
$18,252
* from her adjusted taxable income of $36,000—giving $17,748.
We work out her percentage of care for her relevant dependent children, Mitchell and Frida. Because these children live with Johanna full-time, her percentage of care is 100 per cent.
We also work out Johanna’s cost percentage for her relevant dependent children. Because Johanna has 100 per cent care of Mitchell and Frida, her cost percentage is 100 per cent.
We work out the costs of the relevant dependent children using Johanna’s child support income only. The total cost of Mitchell and Frida is $4,703, so the cost of each child is $2,352.
We multiply each child’s cost by the parent’s cost percentage for the child. Johanna has a cost percentage of 100 per cent for each child, and the cost for each child is $2,352—this gives an amount for each child of $2,352.
We then take Johanna’s adjusted taxable income of $36,000, deduct the self-support amount of
$18,252
then deduct $4,703 for the relevant dependent child allowance. Therefore Johanna has a child support income of $13,045.
To work out the child support payable for Helga, we then follow the steps of the basic formula using the child support income we have just worked out for Johanna.
* Figures used in this example, such as the self-support amount, are indexed annually.
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