Your income
Each parent’s income is considered in the same way and combined to work out
the costs of the children. Each parent’s share of the total income shows how
much of the children’s costs they should meet.
Click on one of these topics for more information:
What income do we use for child support?
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.
Example: Jamie
Jamie and Lyn’s child support period starts on 13 November 2008. Jamie’s
adjusted taxable income will be based on his 2007–2008 taxable income.
Your adjusted taxable income comprises the following amounts.
Taxable income
This is the income shown on your tax return. While the formula uses taxable income,
the impact of tax on your disposable income is taken into account when we work out
the costs of raising your children.
Note: Some income support payments are taxable, some are not.
Gross reportable fringe benefits total
This is the value of gross reportable fringe benefits for the income year, which
is reported on your payment summary. Or ask your employer to tell you the expected
amount for the year.
A fringe benefit is a benefit provided to you because of your employment. Examples
include using a work car privately, low or no interest loans for employees, or a
living away from home allowance.
Target foreign income
This is any foreign income you receive that is not taxable income or a fringe benefit.
Net investment losses
Net investment loss is the amount of allowable deductions claimed for a financial
investment and rental property where the costs outweigh the income. This figure
will be added back on to your taxable income for child support purposes.
Only rental property losses are included for financial years prior to 2009/10.
Some tax-free pensions or benefits
This includes disability support pensions, wife pensions and carer payments. It
also includes the following payments from the Department of Veterans’ Affairs:
- invalidity service pension
- partner service pension
- income support supplement
- Defence Force income support allowance
Reportable superannuation contributions
A reportable superannuation contribution is any salary sacrificed super contributions
or extra contributions an employer makes to your super fund on your behalf. This
includes any personal contributions made to a super fund that can be claimed as
an income tax deduction on your tax return.
Reportable superannuation contributions are not included in adjusted taxable income
for financial years prior to 2009/10.
Your child support assessment is based on your child support income.
To get your child support income we deduct a self-support amount, then deduct a
relevant dependent child amount and/or a multi-case allowance amount if applicable,
from your adjusted taxable income.
Are both parents’ incomes treated the same?
Yes. Both parents have the same self-support amount
set aside, and both parents’ child support incomes are combined to work out
the costs of raising the children.
The costs of children are divided between the parents according to each parent’s
share of the total combined income. This is called the income percentage.
Example: Joseph and Ellie
Ellie and Joseph have separated and have a child support assessment. Joseph's taxable
income for 2007–08 was $22,000. He also received $28,000 in foreign income.
Added together gives his adjusted taxable income of $50,000. The self-support amount
of $18,252 is deducted from his income,
leaving $31,748—which is his child support income.
Ellie's taxable income for 2007–08 was $25,000. She also had $2,000 in rental
property losses and $3,000 was shown on her payment summary for gross reportable
fringe benefits. Added together gives her an adjusted taxable income of $30,000.
The self-support amount of $18,252 is
deducted from her income, leaving $11,748—which is her child support income.
Added together, Joseph and Ellie's combined child support income is $43,496. Their
income percentages show the portion of the costs of the children each parent should
meet. For Joseph, this is $31,748 divided by $43,496—he needs to meet 73 per
cent of costs. For Ellie, this is $11,748 divided by $43,496—she needs to
meet 27 per cent of costs.
Figures, used in this example, such as the self-support amount, are indexed annually.
Show me the latest figures
If your income details change
It’s important that you tell us about changes to your income as soon as it
happens, because we may not be able to backdate the change.
Learn more about income changes.
Is your new partner’s income taken into account?
No. Your or the other parent’s new partner’s income is not taken into
account when working out child support payments because the biological parents have
a responsibility to support their children financially.