Glossary

A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z

Adjusted taxable income

The total of taxable income plus other income components: gross reportable fringe benefits total, target foreign income, net investment losses, reportable superannuation contributions and some tax-free pensions or benefits.

Binding Agreement

A written agreement for child support that can be of any amount, signed by both parents and accompanied by a legal advice certificate confirming that each parent has received independent legal advice prior to entering into the agreement. A child support formula assessment does not have to be in place before a binding agreement can be accepted. A binding agreement can only be ended by a new binding agreement; another binding agreement to the effect that the previous agreement is terminated; or a court order setting it aside.

Care percentage

Directly related to the number of nights you care for the children.

Change of assessment

If parents believe their child support assessment does not reflect their special circumstances, they may be able to apply for a change of assessment by filling in a form, explaining the reasons why the current assessment should be changed and providing information to support their application.

Child support agreement

A flexible way of arranging child support if both parents agree on how the children should be supported financially, provided CSA accepts the agreement. There are two types of agreements: limited agreements and binding agreements.

Child support assessment

An outline of how CSA calculated a parent’s child support case using the formula. An example of what a child support assessment looks like can be viewed online.

Child support formula

Annual rates of child support are calculated according to a basic child support formula, or a variation of the formula. Generally both parents’ incomes are taken into account and considered equally. The formula also factors in the number and age of the children and the amount of care each parent provides.

Child support income

Used to calculate child support. This is each parent's adjusted taxable income minus the self-support amount, minus allowances for relevant dependant children and children from other child support assessments if applicable.

Child support percentage

Under the formula, CSA deducts the cost percentage from the parent's income percentage to get the child support percentage. The child support percentage is applied against the costs of children to work out the child support amount payable.

Child support period

A period of time where a child support assessment applies. The start of the child support period determines which financial year CSA uses to make the assessment. A child support period cannot exceed 15 months. The length of the child support period for any assessment will vary according to the individual circumstances of the child support case.

Combined child support income

The amount of the total ‘household’ income, which is both parents’ child support income amounts added together.

Cost percentage

Reflects the costs parents incur when they have 52 or more nights care of a child (per year), including accommodation, food and other living expenses.

Cost of Children

One of the main components of the formula used to calculate how much child support is payable, which takes into account that the cost of raising children is different in households with different income levels, numbers of children and children of different ages. The ‘cost of a child’ is determined by parents’ combined income, the number of children, and their ages.

Court Order

An order made by a court relating to child support. CSA cannot change a court order - only a court can.

Court-registered agreement

An agreement between parents that is registered with the court. It sets out how child support will be collected and what amount, including other details such as care arrangements. CSA can collect these payments.

CSA collect

CSA collects the payment from the paying parent(s) and transfers it to the receiving parent or non-parent carer.

Debt

Refers to overdue child support payments, which once paid to the CSA are forwarded to the receiving parent or non-parent carer.

De facto relationship

The relationship between a man and a woman who live together as husband and wife on a genuine domestic basis, although they are not legally married to each other.

Direct payment

A direct payment also known as a Non-Agency payment (PDF 550k) can be made directly to the receiving parent or to a third party in lieu of child support with the agreement of both parents. Applies only to parents who ask the CSA to collect child support on their behalf. The payments can be cash or non-cash, e.g. a motor vehicle, property, clothing etc. In special circumstances, the CSA will credit payments even if the receiving parent disagrees - these are called prescribed payments.

Eligible carer

An eligible carer is a person who has at least shared care (128 nights a year or more) of a child.

Estimate of income

An estimate of what the receiving parent or paying parent’s income details will be, from the date of making the estimate until the end of a child support period.

Family Tax Benefit Part A

A government payment designed to help support families with children. Parents need to meet specific criteria and apply for the benefit through the Family Assistance Office. The amount of child support parents receive will determine how much family assistance they are entitled to.

Fixed Annual Rate

Refer to Fixed assessment.

Fixed Assessment

Applied to child support assessments where the paying parent has less than shared care and reports a low income but does not receive an income support payment. The rate is $21.50 per week per child for child support periods starting in 2008. Where a parent has a genuinely low income they can ask that the fixed annual rate not apply to them.

Income percentage

A parent’s share of the combined amount of both parents’ incomes.

In-kind payments

Non-agency or prescribed payments that are non-cash payments meant as child support. Payments may include groceries, rent payments, medical expenses, or school fees.

Law/Legislation

The Child Support (Assessment) Act 1989 governs the child support scheme, and the Child Support (Registration and Collection) Act 1988 governs collection of child support by the CSA.

Legal advice certificate

An annexure to a binding agreement that outlines the advantages and disadvantages of a binding agreement. It also states that independent legal advice has been sought from a legal practitioner.

Level of care

There are five legislated levels of care:

Limited agreement

A written agreement, signed by both parents, that does not require parents to seek legal advice. A child support formula assessment must be in place and the agreed amounts payable under the limited agreement must be equal to or more than the child support assessed under the formula.

Lump sum agreement

Binding agreements can include lump sum payments (including transfer of property) to be credited as child support instead of periodic payments.

Minimum assessment

Paying parents who receive income support may be required to pay a minimum amount per week for each child support family, capped at three times that amount.

Multi-case allowance

An amount set aside that recognises the responsibility for supporting any children that you have in other child support assessments.

Multi-case cap

A cap that ensures a parent doesn’t pay more in child support than it would cost if all the children lived in the same household.

Multi-case cost

The multi-case costs of a child are what it would cost the parent to support the child if all of the children lived with them, based on that parent’s income.

Net Investment Losses

The amount of allowable deductions claimed for a financial investment or rental property where the costs outweigh the income. This figure will be added back on to your taxable income for child support purposes.

Non-Agency Payments

Payments made directly to the receiving parent or to a third party in lieu of child support with the agreement of both parents. Applies only to parents who ask the CSA to collect child support on their behalf. The payments can be cash or non-cash, e.g. a motor vehicle, property, clothing etc. In special circumstances, the CSA will credit payments even if the receiving parent disagrees - these are called prescribed payments.

Non Parent Carer

An individual who is a carer for the child and is not the biological or adoptive parent.

Parenting Plan

A written agreement between a child’s parents about any aspect of their shared parental responsibilities. A parenting plan can contain provisions about residency, contact, or any other related matter.

Parental responsibility

All duties, powers, responsibilities, and authority which, by law, parents have in relation to their children under 18, regardless of the parents’ relationship with each other.

Paying parent

The parent, either natural or adoptive, who pays child support.

Post separation excluded income

Parents can apply to have extra income earned after separation (up to 30 per cent) excluded from their child support assessment, usually for up to three years after separation. This allows for parents to re-establish themselves after separation.

Prescribed payment

Certain Non-Agency Payments (PDF 550k) can be recognised by the CSA even if the receiving parent does not agree that the payment was for child support. These payments are called prescribed payments. Up to 30 per cent of the paying parent’s monthly child support liability can be credited if the remaining 70 per cent is paid to the CSA when it is due. Only applies to parents who have less than regular care of their children. Care above this level is recognised in the child support formula, that is, directly meeting child support costs through care.

Private collect

CSA-registered child support that is collected privately, i.e. paid directly from the paying parent to receiving parent or non-parent carer (not through CSA).

Receiving parent

The person who is eligible to receive child support and is responsible for the ongoing care of the child/children.

Relevant dependent child amount

An amount set aside that recognises the care of a natural or adopted child living with you (not a child support child).

Reportable fringe benefits

The amount declared by your employer to be the value of your fringe benefits. Reportable fringe benefits are a supplementary amount and are included in the adjusted taxable income when making an assessment.

Reportable Superannuation Contributions

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.

Safety net

If private collection of child support is unsuccessful, the receiving parent can ask CSA to start collecting payments. The receiving parent and paying parent must have a CSA assessment.

Self-administration

Where parents are not CSA customers. They have private arrangements where they decide how much will be paid and how it will be administered.

Self-support amount

The same amount deducted from each parent's adjusted taxable income for their own support.

Stay order (pending certain CSA, SSAT or court decisions)

A court order that affects the child support assessment or collection.

Target foreign income

The net income earned overseas that is exempt from Australian tax. This income is included in the adjusted taxable income when calculating the parent’s assessment.

Taxable income

The income that appears on a parent’s tax assessment from the Australian Taxation Office after lodging a tax return.

Variation

A variation to a child support assessment due to a change in circumstances, for example a change in income, change in level of care or an additional child.

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