Australian Defence Force personnel serving in war-like operations

If you are a member of the Australian Defence Force (ADF) and you serve in war-like operations, you receive a tax-free salary as well as additional allowances paid as compensation for serving in a war-like zone. As a result your taxable income will decrease and your net income will increase. These changes may affect your child support liability.

How does serving overseas effect my current child support assessment?

CSA will not automatically make adjustments to an existing child support assessment because your child support assessment is based on the previous year's taxable income. Your child support liability will continue to be based on your pre-deployment salary.

However if you are a serving member of the ADF, you or the other parent can apply to change the amount of child support payable.

See lodging an estimate and change of assessment.

While you are deployed overseas, you can advise CSA that your taxable income has been reduced and you wish to use an estimate of your reduced taxable income for the rest of the child support period. In these circumstances, there will be a reduction in the amount of child support payable.

The other parent, however, may respond by applying for a change of assessment on the basis that the revised assessment does not accurately reflect the true amount of income available to you.

Although all cases are different, it is likely that such an application would be successful and child support would be increased to something similar to your liability before you were deployed, provided there were no other changes in circumstances.

The additional allowances paid to you during operations are unlikely to be sufficient reason to change to the assessment. As with all applications for a change to the assessment, CSA needs to consider the circumstances of both parents to determine whether it would be fair for all parties involved to make a change.

How does it affect subsequent child support assessments?

When you lodge your next tax return, CSA will issue a new child support assessment using the taxable income shown on your tax statement. This new amount will cover your income for the period while you were serving overseas.

In calculating this new assessment CSA will not include tax-free defence allowances because they are not employer-provided reportable fringe benefits. Because your income during your deployment was tax-free, your assessment will probably be lower than what you would be assessed if your current income was used.

When this new liability is calculated, the other parent can apply for a change of assessment to have the child support assessment increased on the basis that the revised assessment does not accurately reflect the true amount of income available to you now (taxable or not).

Although all cases are different, it is likely that such an application would be successful and the child support would be increased to an amount closer to your current income. However, as with all applications for a change to the assessment, CSA needs to consider the circumstances of both parents to determine whether it would be fair for all parties involved to make a change.

Please contact CSA for more information

This information is only a guide to what the outcomes might be because both parent's individual circumstances need to be taken into account. You should always discuss your situation with CSA.

For more information contact CSA. For specific information on the change of assessment process, call 131 141.

Last updated: 12 May 2008 08:39