Glossary

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 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.

Care percentage

See percentage of care.

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 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.

Child support assessment

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.

Child support formula

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.

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 sum of the parents’ individual child support incomes.

Cost percentage

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.

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.

CSA collect

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

Debit card (or Scheme Debit card)

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.

Debt

Refers to overdue child support payments.

De facto relationship

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.

Direct payment

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.

Eligible carer

An eligible carer is a person who has shared care (at least 35 per cent or 128 nights a year) 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 the financial year.

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 or pay may affect how much family assistance they are entitled to.

Fixed Annual Rate

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.

Income percentage

A parent’s share of the combined child support income of both parents.

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 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.

Legal advice certificate

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.

Percentage of care

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.

Limited agreement

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.

Lump sum agreement

Binding agreements can include lump sum payments (including transfer of property) to be credited against a child support liability until the credit is exhausted.

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 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.

Multi-case cap

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.

Multi-case child costs

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.

Net Investment Losses

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.

Non-Agency Payments

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.

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 where the child will live, how much time the child should spend with their parents and other relatives, 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 who pays child support.

Post separation excluded income

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.

Prescribed payment

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.

Private collect

An arrangement where parents have a child support assessment made by the CSA, but they arrange the transfer of child support privately between them.

Receiving parent

The person who is eligible to receive child support.

Relevant dependent child amount

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).

Reportable fringe benefits

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.

Safety net

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.

Self-administration

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.

Self-support amount

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.