CSA's plain English law & policy guide
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Glossary
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Actual care
If a court order or parenting plan is being contravened without a reasonable excuse and one parent has less care than provided for in the order or plan, that parent will be assessed on the level of care they actually have (the actual level of care) during the first 12 months of the child support period.
Adjusted income amount
This is the payer's child support income amount, minus any exempted income. If the payee receives more than the disregarded income amount, the payer's adjusted income amount may be reduced by 50% of the payee's excess income. The payee's excess income cannot reduce the annual rate payable to nil.
Carer
A person who cares for an eligible child for at least 110 nights a year.
Change of assessment
A parent may ask the Child Support Agency (CSA) to change a child support assessment because of special circumstances.
Child support agreement
This is an agreement between the payer and payee which specifies how, and how much, child support is to be paid. A child support agreement can also be part of a parenting plan. A child support agreement can be CSA Collect, Private Collect or not registered with CSA at all. This last method is known as self-administration.
Child support assessment
This is an assessment for child support made by CSA, using the child support formula contained in the legislation. It applies to Stage 2 cases only, which cover parents who separated after 30 September 1989, or have at least one child born after that date.
Child support formula
Child support payments are calculated according to this formula. It takes into account each parent's income, number of dependent children, and the amount of care each parent has of the child or children involved.
Child support income amount
This is the total of the parent's taxable income, plus any supplementary income.
Child support percentage
This depends on the number of children the payee is caring for.
Child support periods
A child support period is a period of time to which a child support assessment applies. The date of the start of the child support period determines which financial year of income CSA uses to make the assessment. A child support period is a flexible period of time, which cannot exceed 15 months. The length of the child support period for any assessment will vary according to the individual circumstances of child support case. More detailed information is available in Chapter 2.3: Child support periods of The Guide.
Court Order
This is an order made by a court relating to child support. CSA cannot change a court order-only a court can do that. If parents separated before 1 October 1989 and all their children were born before that date, they must ask the Family Court to order how much child support is to be paid. Parents may apply to CSA to collect this child support until the child turns 18.
Court-registered agreement
An agreement between parents that is registered with the court. It sets out how, and how much, child support will be paid and other details such as care arrangements. CSA can collect these payments.
CSA collect
The collection of child support payments by the CSA.
Debt
This is child support that a parent owes to CSA. The debt may happen because of: an overpayment; not paying child support; late payment penalties; a change or variation to the child support assessment; a court order; or an application for arrears to be collected.
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.
Dependent child
A child is your dependent child if:
- a court has made an order that says you have a duty to maintain your step-child; or
- you are the child's natural or adoptive parent; and
- you are the sole or principal provider of daily care of the child or have major contact with the child; and
- the child is under 18 and not married.
Disregarded income amount
This is the amount of taxable income the payee can receive before the child support assessment is reduced. The disregarded income amount is currently $45,505 (2008 figure). The payee's disregarded income cannot reduce the child support they are entitled to by more than 75% of the assessed amount.
Eligible carer
An eligible carer is a person who:
- is the sole or principal provider of ongoing daily care of a child, or
- has major contact with a child, or
- shares ongoing daily care of a child, or
- has substantial contact with a child.
Definition of these different levels of care.
Estimate of income
An estimate of what the payee or payer's income details will be, from the date of making the estimate until the end of a child support period.
Excess income amount
The payee's income which is above the disregarded income level.
Exempted income amount
The amount deducted from the child support income, determined by the number and age of the children in the care of the payer.
If the payer does not have a relevant dependent child, the amount is 110% of the annual amount of the relevant unpartnered Centrelink pension for the child support period.
| Year | Payer exempt income with no dependent children |
|---|---|
| 2008 | $15,378 |
| 2007 | $14,646 |
| 2006 | $13,983 |
| 2005 | $13,462 |
| 2004 | $12,950 |
If the payer has one or more relevant dependent children, the amount is the sum of 220% of the annual amount of the relevant partnered Centrelink pension plus additional amounts for each child according to their age.
| Year | Payer exempt income with one or more dependent children |
|---|---|
| 2008 | $25,689 PLUS an additional amount for each child |
| 2007 | $24,464 PLUS an additional amount for each child |
| 2006 | $23,349 PLUS an additional amount for each child |
| 2005 | $22,480 PLUS an additional amount for each child |
| 2004 | $21,622 PLUS an additional amount for each child |
| Year | Aged under 13 | Between 13 and 15 | Aged 16 and over |
|---|---|---|---|
| 2008 | $2,570 | $3,705 | $5,838 |
| 2007 | $2,489 | $3,504 | $5,560 |
| 2006 | $2,424 | $3,380 | $5,307 |
| 2005 | $2,362 | $3,296 | $5,109 |
| 2004 | $2,307 | $3,219 | $4,914 |
Family Tax Benefit Part A
A government payment designed to help support families with children. Payment of more than the base rate of Family Tax Benefit is only made if the carer takes reasonable action to get child support for the child/ren.
In-kind payments
Non-cash payments that are 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 CSA.
If a parent is contravening a court order or parenting plan without a reasonable excuse and one parent has more care than provided for in the order or plan, that parent is taken to have the level of care provided by the order or plan (the lawful level of care) during the first 12 months of the child support period.
Level of care
The level of care provided by the payee or payer, i.e. sole or shared care, major or substantial contact.
- Sole care: the main carer has care of the child or children more than 256 nights per year, with the paying parent having less than 109 nights care per year.
- Major contact: the main carer has care of the child or children between 220-255 nights per year, with the paying parent having between 110-145 nights care per year. Alternatively, parents can decide which parent has major contact.
- Shared care: the applicant has care of the child or children between 146-219 nights per year, with the other parent having the equivalent amount of care. Care does not have to be measured by the number of nights-daytime care can also be considered.
- Substantial contact: the applicant has care of the child or children between 110-145 nights of the year, with the other parent having between 220-255 nights per year. Alternatively, parents can decide which parent has substantial contact.
Net foreign exempt income
The net income earned from overseas (which is exempt from Australian tax). This income is added to your taxable income when making your assessment.
Non-Agency Payments
Payments made directly to or for the payee. Applies only to CSA Collect parents. The payments can be cash or non-cash, e.g. a motor vehicle, property, clothing etc. Both the payer and payee need to agree that the payment was made in lieu of child support payments to CSA. In special circumstances, CSA will credit payments even if the payee disagrees-these are called prescribed payments.
Parenting Plan
A written agreement made between parents and registered with the Family Court. The Plan deals with one or more of the following issues: residency, contact, maintenance, 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.
Payee/Receiving parent
The person who is eligible to receive child support and is responsible for the ongoing daily care of the child/children.
Payer/Paying parent
The parent, either natural or adoptive, who pays child support.
Prescribed payment
Certain Non-Agency Payments can be recognised by CSA even if the payee does not agree that the payment was for child support. These payments are called prescribed payments. Up to 30 per cent of the payer's monthly child support liability can be prescribed payments if the remaining 70 per cent is paid to CSA when it is due.
Private collect
CSA registered child support that is collected privately, i.e. paid directly from payer to payee (not through CSA).
Relevant dependent child
A child is your dependent child if:
- a court has made an order that says you have a duty to maintain your step-child; or
- you are the child's natural or adoptive parent; and
- you are the sole or principal provider of daily care of the child or have major contact with the child; and
- the child is under 18 and not married.
Rental property losses
Your rental property deductions exceed your rental property income. This is commonly referred to as negative gearing. This loss is a supplementary amount and will be added to your taxable income when making your assessment.
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 added to your taxable income when making an assessment.
Safety net
If private collection of child support is unsuccessful, the payee can ask CSA to start collecting payments. The payee and payer must have a CSA assessment.
Self-administration
Where parents are not CSA customers. They have entirely private arrangements where they decide how much will be paid and how it will be administered.
The care of a child is shared when 2 people care for a child substantially equally. This can happen in 2 ways, either:
- one parent is the principal provider of ongoing daily care and the other parent has care for at least 40% (146) of the nights in the first 12 months of a child support period, or
- the care each parent provides is substantially equal. To decide whether parents care for a child substantially equally CSA will take into account the amount of time during both day and night that each parent cares for the child as well as who is responsible for making arrangements for, and decisions about, the child’s welfare. CSA will give weight to statements from both parents that they share care for a child; but CSA will not be satisfied that parents share the care of a child if the amount of time the child spends with each person does not appear to be substantially equal.
Stage 1 case
If your children were born before 1 October 1989 and you separated before that date (or never lived together).
Stage 2 case
If 1 or more of your children were born after 30 September 1989 or you separated after that date.
Supplementary income
The total of any net exempt foreign income, rental property loss amount, and reportable fringe benefits. Supplementary income is added to your taxable income to make up the child support income amount. Your child support assessment will be based on this child support income.
Taxable income
The income that appears on your notice of assessment that you receive from the Australian Taxation Office after lodging your 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.
