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 for 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.
See 'percentage of care'.
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 written agreement
between the parents which specifies how, and
how much, child support is to be paid. A child support agreement can also be
part of a parenting plan.
There are two types of agreements:
limited agreements and
binding agreements.
This is an assessment for child support made by CSA, using the child support formula contained in the legislation. An
example of what a child support
assessment looks like can be viewed online.
Annual rates of child support are calculated according to a child support 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 sum of the parents’ individual child support incomes.
Reflects the costs parents incur when they have at least 14 per cent 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.
CSA collects the payment from the paying parent(s) and transfers it to the receiving parent or non-parent carer.
Unlike an EFTPOS card, a Visa or MasterCard debit card functions like any credit
card but provides direct access to funds in your deposit or savings account, rather
than a line of credit. A paying parent can use a Visa or MasterCard, credit or debit
card to pay their child support using Government
EasyPay.
Refers to overdue child support payments.
The relationship between two persons, whether of the same sex or opposite sex, 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 is a payment made directly to a parent or a third party for child support purposes, in lieu of the payment being made to the CSA.
An eligible carer is a person who has shared care (at least 35 per cent or
128 nights a year) 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 the financial year.
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 or pay may affect how much family assistance they are entitled to.
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 and is indexed each
year by inflation. 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
child support income of both parents.
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 administrative assessments of child support payable, and the
Child Support (Registration and Collection) Act 1988 governs collection, enforcement and payment of child support by the CSA.
An annexure to a binding agreement for each party to a binding child support agreement that states that independent legal advice has been provided by a legal practitioner as to the effect of the agreement on the rights of that party and the advantages and disadvantages of making the agreement, signed by the legal practitioner providing that advice.
The percentage of care that a parent provides for a child during a care period (usually measured in nights over a 12 month period).
There are five terms that may be used by CSA to describe a parent’s care for a child:
-
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
prior to making. A
child support formula assessment
must be in place prior to the agreement being considered by CSA 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 against a child support liability until the credit is exhausted.
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 calculated to recognise the responsibility for supporting any children that a parent has in other child support assessments. The allowance is deducted from a parent’s adjusted taxable income before child support is calculated.
Where a parent pays child support for more than one child and all the children do not live in the same household, the multi-case cap ensures that the parent doesn’t pay more in child support than the children would cost if they all 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 multi-case child costs are used to calculate the
multi-case allowance.
Where allowable deductions claimed for a financial investment or rental property exceed the income from those investments, the excess deductions are a net investment loss. This figure will be added back on to your taxable income for child support purposes.
Cash or in-kind payments made, usually with the agreement of both parents, directly to the receiving parent or to a third party in lieu of child support payments to CSA. The payments can be cash or non-cash, e.g. a motor vehicle, property, clothing etc. In certain 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 of the child and is not the child’s parent.
A written agreement between a child’s parents about any aspect of their shared parental responsibilities. A parenting plan can contain provisions about where the child will live, how much time the child should spend with their parents and other relatives, or any other related matter.
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 who pays child support.
Parents can apply to have extra income earned after separation excluded from their
ajusted taxable income, for up to three years after separation. The maximum reduction is 30% of their adjusted taxable income. This assists parents to re-establish themselves after
separation.
Certain Non-Agency Payments 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. This
only applies to parents who have less than regular care of their children. Care
above this level is recognised in the child support formula, which recognises
that a parent with at least regular care is directly meeting child support costs through care.
An arrangement where parents have a child support assessment made by the CSA, but they arrange the transfer of child support privately between them.
The person who is eligible to receive child support.
An amount deducted from a parent’s adjusted taxable income before making an assessment of child support payable. This amount recognises the care that a parent has of a natural or adopted child living with them (who is not a child support child).
The amount declared by your employer to be the value of your fringe benefits. Reportable fringe
benefits 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, or any personal contributions made
to a super fund that can be claimed as an income tax deduction on your tax return.
If private collection or self-administration of child support is unsuccessful, the receiving parent can ask CSA to start collecting payments or, if necessary, to have CSA make an assessment of child support and then collect that assessed amount.
An arrangement where parents decide between them what the child support arrangements will be, including payment and collection of any amounts agreed. CSA has no involvement in these arrangements.
The amount deducted from each parent's
adjusted taxable income for their
own support.
Stay order (pending certain CSA, SSAT or court decisions)
Where a person makes certain applications to the Social Security Appeals Tribunal (SSAT) or a court, they may seek a stay order that suspends the operation of an assessment or collection by CSA until a decision is made on the application to the SSAT or court.
Social Security Appeals Tribunal (SSAT)
The SSAT is an independent Tribunal that can review most decisions made by the CSA.
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.
A variation to a child support assessment due to a
change in circumstances, for example a
change in income, change in
percentage of care
or an additional child.