Glossary
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.
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.
Directly related to the number of nights you care for the children.
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.
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.
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.
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.
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.
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.
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.
The amount of the total ‘household’ income, which is both parents’ child support income amounts added together.
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.
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.
An order made by a court relating to child support. CSA cannot change a court order - only a court can.
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 collects the payment from the paying parent(s) and transfers it to the receiving parent or non-parent carer.
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.
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.
An eligible carer is a person who has at least shared care (128 nights a year or more) of a child.
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.
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.
Refer to 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.
A parent’s share of the combined amount of both parents’ incomes.
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.
There are five legislated levels of
care:
-
Below regular care – care of the child between 0 and 13 per cent of the
time which is between 0 and 51 nights a year. Parents with below regular care are not
assessed as directly meeting any of the costs of their children.
-
Regular care - care of the child between 14 and 34 per cent of the
time which is between 52 and 127 nights a year. Parents with regular care are assessed
as directly meeting 24 per cent of the costs of their children.
-
Shared care - care of the child between 35 and 65 per cent of the time
which is between 128 and 237 nights a year. Parents with shared care are assessed as
directly meeting between 35 and 65 per cent of the costs of their children, depending
on their exact percentage of
care.
-
Primary care - care of the child between 66 and 86 per cent of the
time which is between 238 and 313 nights a year. Parents with primary care are
assessed as directly meeting 76 per cent of the costs of their children.
-
Above primary care – care of the child between 87 and 100 per cent of
the time which is between 314 and 365 nights a year. Parents with above primary care
are assessed as directly meeting 100 per cent of the costs of their children.
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.
Binding agreements can include lump sum payments (including transfer of property) to be credited as
child support instead of periodic payments.
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.
An amount set aside that recognises the responsibility for supporting any children that you
have in other child support assessments.
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.
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.
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.
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.
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.
The parent, either natural or adoptive, who pays child support.
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.
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.
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).
The person who is eligible to receive child support and is responsible for the ongoing care of the
child/children.
An amount set aside that recognises the care of a natural or adopted child living with you
(not a child support child).
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.
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.
Where parents are not CSA customers. They have private arrangements where they decide how much will
be paid and how it will be administered.
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.
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.
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.